
Harcourts Team Group
Wellington (REA 2008)


(Here’s how to lock it in before someone else does.)

A common question we get is ’I’m thinking of looking for a property. Do I need a bank approval first?’
It’s definitely advantageous to get have a loan pre-approval before you go looking. Firstly, It allows you to see what price range you can buy in and understand what it will cost you.
Secondly, in making an offer it allows you to make a better offer by giving the seller confidence that you have a pre-approval in place for the offer you are making. Let your agent know you have pre-approval...it can give you an edge over someone who doesn’t.
Buyer Pro-Tip – For the inside running, if you want to be more competitive you can massively increase your chances of buying success just by being a bit more organised and putting some extra time into it. Provide the property details you want to offer on to your bank very early, as soon as you may have found the one, and ask for a ‘specific approval’. With a specific approval you can make a cash offer without needing a finance clause.Why does this help you? Well, when considering offers, seller’s universally ask 3 questions:
What is it?... They mean the Price.
How Risky is it? What conditions are involved? Has the buyer done their homework and are they reliable?
When do they want to move in? Can this work logistically?
In every case, ‘cash offers’ which are in the ‘fair or sensible price zone’ for a property achieve far greater attention from sellers. Human nature is to ‘avoid loss’ and, as a general rule, when faced with a good cash offer most sellers are reluctant to put this aside to pursue a higher conditional offer for concern that the conditions may not work out and they’ll be back to square one. Of-course it needs to be a good cash offer in the first place or else it brings them straight back to loss aversion where very low cash offers are likely to be rejected as being too cheap for the property. P.S. Buyer interest is picking up and now is a great time to put your plans into place. For advice on the market or making offers in touch (027 518 0008 or leonie.snook@harcourts.co.nz). No sales pitch, no fuss—just service!
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