Making an Offer on a House NZ — Private Treaty, Conditions, and Negotiation

Making an offer on a property in New Zealand is a formal, legally binding process. Once your offer is accepted, you’re in a contract. Understanding how the process works before you submit an offer protects you and gives you the best chance of securing the property on favourable terms.

Sale Methods in NZ

Before discussing how to make an offer, understand which sale method applies:

Private treaty (price by negotiation): The most common method. The agent lists an asking price or price range, and you make an offer. This is a traditional negotiation — offer, counter-offer, and agreement.

Deadline sale / tender: You submit a written offer by a deadline date. The vendor reviews all offers and accepts, declines, or counters. Unlike auction, you may be able to add conditions. Tenders often need to be close to unconditional to be competitive.

Auction: Unconditional bidding on the day. See Property Auction NZ for the complete guide.

This guide focuses primarily on private treaty sales.

The Sale and Purchase Agreement

Every NZ property transaction uses a Sale and Purchase Agreement (SPA) — the formal contract. In most cases, this is the REINZ (Real Estate Institute of NZ) standard form agreement, with any customisations added as special conditions.

The agreement specifies:

The purchase price
Settlement date (when the property legally transfers and you pay the balance)
Deposit amount (usually 10%, paid on signing or within a few days)
Conditions (if any)
Chattels included (e.g., dishwasher, heat pump, curtains)
Any special conditions

Always have your solicitor review the agreement before signing, especially if there are any unusual terms, special conditions from the vendor, or if you’re adding your own conditions. The solicitor’s fee for reviewing an SPA is typically $200–$400 and is worth every dollar.

Conditional vs Unconditional Offers

Conditional offer

A conditional offer includes one or more conditions that must be satisfied before the contract becomes binding. Common conditions:

Finance condition: You have X working days to obtain satisfactory finance. If you can’t get finance, you can cancel without penalty and your deposit is returned. This protects you if the bank declines or values the property lower than expected.

Building inspection condition: You have X working days to obtain a satisfactory building inspection. If the report reveals significant defects, you can negotiate a price reduction or cancel.

LIM condition: You have X working days to obtain and approve a LIM report from the council.

Solicitor’s approval condition: You have X working days for your solicitor to approve the title and agreement. Often standard in NZ.

Advantages of conditional offers:

You have protection — if a condition isn’t met, you can cancel without losing your deposit
You have time to investigate the property properly
Lower risk if your finance isn’t fully confirmed

Disadvantages:

Vendors prefer unconditional or lightly-conditioned offers (faster certainty)
In competitive markets, a heavily conditioned offer may lose to a cleaner offer
Longer timeframe gives competing buyers time to make offers

Unconditional offer

An unconditional offer is a firm, binding commitment. If the vendor accepts, you must complete — regardless of what the building inspection finds, whether your finance falls through, or any other problem.

Unconditional offers are appropriate when:

You’ve completed all due diligence in advance
Finance is fully confirmed (not just pre-approved — the bank has approved the specific property)
You have the capacity to absorb any risks that emerge

Never make an unconditional offer on a property you haven’t properly investigated.

Typical Condition Timeframes

Condition	Typical timeframe
Finance	5–10 working days
Building inspection	5–7 working days
LIM	7–10 working days
Solicitor’s approval	3–5 working days

Timeframes are negotiable. In hot markets, vendors want shorter windows; in slower markets, you have more flexibility.

How to Determine Your Offer Price

Research recent comparable sales: Use sites like OneRoof, Homes.co.nz, or QV.co.nz to find recent sales of comparable properties (similar size, condition, and location). These “comps” tell you what the market has paid.

Get a pre-purchase valuation (optional): For expensive or unique properties, you can commission a registered valuer to assess fair market value before making an offer. Cost: $600–$900. This gives you an independent basis for your offer.

Starting offer vs maximum: Start below your maximum — you may not need to pay your maximum, and you want room to negotiate. In NZ, initial offers are often 3–8% below the eventual agreed price in private treaty negotiations.

Vendor’s price expectations: If the agent has a listed price, offers at or above asking are generally required to have a reasonable chance of acceptance in normal markets. In softer markets, below-asking offers are more viable.

Negotiation Tactics

Counter-offers: If the vendor doesn’t accept your first offer, they’ll counter. You can accept, counter again, or walk away. Each counter-offer is a new offer — the previous terms no longer apply once you counter.

Using building inspection results: If the inspection reveals significant defects, go back to the vendor with the inspector’s report and a revised price. Vendors often accept price reductions equivalent to repair costs for clearly documented defects.

Settlement date flexibility: Offering a settlement date that suits the vendor can add value to your offer without increasing the price. If the vendor is buying elsewhere, a flexible settlement date can make your offer more attractive.

Inclusions: Adding or removing chattels (dishwasher, heat pump, TV, curtains, mower) can be used as negotiating levers.

After Your Offer Is Accepted

Once the vendor signs your offer:

Pay the deposit (usually within a few days — the timeframe is in the agreement)
Begin satisfying conditions — book the building inspection, apply for the LIM, confirm finance with your bank
Instruct your solicitor to proceed with the title search and settlement preparation
If conditions are satisfied — confirm in writing to the agent/vendor
If a condition can’t be satisfied — notify the agent/vendor in writing within the timeframe and request cancellation

Common Mistakes to Avoid

Making an offer without pre-approval: You may be contractually obliged to proceed before your finance is declined, or your finance condition may expire. Always have pre-approval before making offers.

Signing without solicitor review: Even for simple private treaty sales, get your solicitor to review the agreement. Red flag clauses, unusual vendor conditions, or chattel disputes are far easier to resolve before signing than after.

Making an unconditional offer prematurely: The most expensive mistake in NZ property. Make sure you’re truly ready before removing conditions.

Emotional bidding above your means: Set your maximum before negotiating and stick to it.