Buying Your First Home in NZ? Here’s How to Negotiate Like a Pro

Buying your first home is an exciting milestone, but it can also feel overwhelming—especially when it comes to negotiation. In our competitive property market, knowing how to negotiate effectively can make all the difference in getting a fair deal. Whether you’re buying at auction, through private sale, or negotiating on a new build, here’s how to approach the process like a pro.

1. Understand the Market First

Before you even start negotiating, do your research:

• Check recent sales in the area using sites like Homes.co.nz, Trade Me Property, and OneRoof.co.nz.
• Understand local market trends—are prices rising or stabilising?
• Identify if it’s a buyer’s or seller’s market. In a buyer’s market, you may have more room to negotiate.

2. Get Pre-Approved for a Mortgage

Having a home loan pre-approval from your bank or lender gives you stronger bargaining power. Sellers take pre-approved buyers more seriously because they know you’re financially ready to proceed.

3. Know Your Negotiation Power in Different Buying Scenarios

Buying at Auction – The No-Negotiation Zone (But Still a Strategy!)

Auctions are common way to purchase a property, and there’s little room for negotiation—either you outbid others or you don’t. However, you can still:

• Set your limit and stick to it to avoid overpaying.
• Attend a few auctions beforehand to understand how they work.
• Negotiate post-auction if the property is passed in (unsold). Sometimes, vendors are open to offers afterward.

Private Sale – Where You Can Negotiate the Most

With private sales, you have more leverage to:

• Offer below asking price, especially if the property has been on the market for a while.
• Request conditions like a longer settlement period or an extended due diligence timeframe.
• Ask for inclusions like whiteware, curtains, or furniture.

Negotiating Off the Plans (New Builds)

• Developers may offer incentives—ask about discounts, upgrades, or added features.
• Compare pricing with other developments to ensure you’re getting a good deal.

4. Key Negotiation Tactics for First-Home Buyers

✔️    Don’t Show Too Much Emotion
Even if you love the home, don’t let the seller see it. Stay neutral and professional to avoid weakening your position.

✔️  Use Conditional Offers to Your Advantage

• Include clauses such as finance approval, building inspection, and LIM report to protect yourself.
• If competition is high, making your offer “cleaner” (fewer conditions) can make it more attractive to the seller.

✔️  Leverage Time Pressure

• If the property has been sitting on the market, ask the agent if the seller is motivated to move quickly.
• Offering a shorter settlement period can sometimes help secure a better price.

✔️  Be Willing to Walk Away

• If negotiations stall, don’t be afraid to walk away—there will always be other opportunities.

✔️         Get Expert Help

• Work with a real estate agent who understands the local market and can negotiate on your behalf.
• Consult a mortgage broker to help you secure the best financing.
• Always have a property lawyer review your contract before signing.

Prepare Properly with Our First Home Buyers Guide – Download Today, It’s Free!

Negotiating your first home purchase doesn’t have to be intimidating. By understanding the market, using the right strategy, and staying level-headed, you can confidently secure the best deal possible.

Are you in the process of buying your first home and need help with pre-approval so you can be ready to purchase? Speak to our team.