A sunset clause is a clause that you include with any other conditions (like a property valuation, building inspection, or a LIM) in your sale and purchase agreement when buying a house. It is a clause that puts an ‘Expiry Date’ on the offer.

Why Use a Sunset Clause

There are a number of reason sunset clauses are put into sale and purchase agreements - the most common being to put pressure on the vendor to make a decision about your offer, or to ensure you can continue to house hunt, and put offers on houses, if an offer you have submitted is not accepted or rejected within a reasonable timeframe i.e. about 2 days.




If you don’t have a sunset clause your offer remains current until accepted or rejected by the vendor. This can be painful as you may miss out on other opportunities – or you could find yourself having multiple offers accepted if you continue to make offers on other houses assuming old offers were rejected.

When to Use a Sunset Clause

Putting a sunset clause on a sale and purchase agreement is not often done but is a good idea when you want an answer to your offer quickly for whatever reason and especially in tender situations – where your offer may be kept ‘on hold’ until negotiations with someone else are finalised.

How Long Should a Sunset Clause Be?

A good amount of time to make a sunset clause for is approximately 2 working days – with the clause expiring at 4pm on the second day – allowing for paperwork to be processed before close of business if the offer is accepted at the last minute.

If you are making an offer late in the week, try to make sure the sunset clause expires before the open home crowd descends on your potential home on the Sunday – you may not want the competition!

Leveraging the Sunset Clause

The sunset clause gives you some degree of control over the timing of the offer acceptance or negotiations. If the sale and purchase agreement expires – it is not the end - you can always offer again, or extend the sunset clause on the same (or amended) agreement if you want.

If the agreement is accepted after the sunset clause expires, the offer has expired, and no legally binding agreement has been entered into. In this case it is up to you whether or not you want to proceed. You can choose to accept the original agreement or you can resubmit the offer with some changes suitable to you.

Vendors and Sunset Clauses

Sometimes the vendor may put a sunset clause in the sale and purchase agreement – if this is the case – it really pays to get your lawyer to look over it and to explain the implications of the clause.

Sunset Clauses - Get Your Property Lawyers Advice

Don’t forget - like any clause you put in your sale and purchase agreements – whether it is being put in by you or the vendor – get it checked over by your property lawyer!

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The Propertytoolbox Home Buyers Guide

After some more great home buying advice – don’t forget to check out our home buying guide!

The Rateable Value of a house (or RV) is often quoted in the advertising for a house for sale - the suggestion is that it provides some kind of indication of the market value of the house - but does it?

What is the RV?

The RV is the rateable value or the 'value' of a house set by the local authority for the purpose of determining and allocating rates. The RV is also sometimes known as the government valuation (GV) or capital value (CV).

Why is the Rateable Value Quoted in House Adverts

Real estate agents often mention the RV in advertising, most often this is because people like to know the rateable value! But sometimes it is because the real estate agent or home owner feels that the RV is a good indication of the market value of the house. The RV's relationship to the market value of the house is ultimately up to you to decide, here are some things to consider:

Rateable Value v Price

The rateable value doesn't usually take into account anything that makes a property better or worse than others in the area, for example condition of the house and land, chattels included, landscaping improvements, and so on. Sometimes the RV is a good rough-guide of value but other times it is completely irrelevant.




An RV can be very out of date! RV's are done at least every 3 years - this can be a long time in the property market. Check the date of the rateable value - it may be 2+ years old - and not relevant in the current market.

Should I Use The RV as a Price Guide?

As a rule, you should only use the rateable value in combination with other information, like your own experience or a registered property valuation. If you are looking for the rateable value of a house - you can find out rateable value information on your local council's website for free.

Property Valuation and Rateable Values

One last thing! A registered property valuation done by a registered valuer is not a rateable value or a RV, and a registered valuation should not be referred to as an RV. To find a registered valuer - visit Property Valuation NZ.

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The Propertytoolbox Home Buyers Guide

This information about the RV as a price guide was from the resources section of Property Valuation NZ – the home of the property valuer profile – making it easy for you to make a good decision when choosing a local property valuer.

Property valuers - in addition to providing property valuations that determine the market worth of houses - can provide consultation. A consultation by a property valuer is usually a verbal report and discussion about the house you are interested in. Why would you want a consultation with a property valuer when you are buying a house? There are lots of reasons!

An experienced valuer has seen lots of houses and is familiar with house types, building eras, construction methods & materials – they also have an understanding of engineering and architecture. This is handy info to have access to!

Valuers also keep up-to-date with local district plans and will be familiar with the Resource Management Act and other relevant legislation and regulations like the Building Code. Insight into this information can be very useful when looking at a house.

And even though a property valuer is usually not an expert in building and engineering matters – they can identify problems that you can then investigate further, using the relevant professional, if necessary.

Property valuers have a lot of knowledge to reference and can give a knowledgeable, and therefore, very useful assessment of the worthiness of a house. They can quickly point out the good and the bad points and, better yet, give an indication as to how this affects, or will affect over time, the market value of a property.

A consultation with a property valuer regarding a house can be good value for money – usually being cheaper than getting a full property valuation report. This expert knowledge is a valuable resource and the availability of property valuers for consultation is handy to know about – if you are after an unbiased property professional to give you an honest opinion – it is the way to go.

Another great way property valuers can help is in estimating of what a house could be worth after planned renovations. You can provide a valuer with a brief of your plans or your drawings and they can give you a post renovation estimate of worth that can help you work out if an investment in renovations is worth it. This is usually done as an add-on to a property valuation – but can be done in a consultation capacity.

So property valuers are not all about market value and are not just a box to tick as part of getting a mortgage – they are a property professional with heaps of great relevant knowledge, and experience – and best of all – they can provide an unemotional, unbiased opinion of the house you are looking to buy.

Interested in find a property valuer to help you out? You know where to go! Property Valuation NZ!

Last Blog post we got the basic questions to ask a property valuer sorted – now we are getting down to the good stuff - finding out what the property valuer does during the valuation house inspection, and how the property valuation results and property valuation report are delivered. All these questions are answered for you on Property Valuation NZ – so if you want to get straight to finding and comparing local property valuers – head this way.

About the Valuation Inspection and Report

 

Question 5: How long will it take? When can I expect your report?

The valuer should be let you know when the report will be ready before you hire them. A valuation can usually be done (paper report produced) within 4 days. Many valuers are very accommodating and can work in with your deadlines - good practice for valuers is to not accept the work if they cannot meet your timelines. They should also let you know what is a realistic timeline given your situation - a lot depends on access to the house – this is the biggest delaying factor – if a valuer cannot get into the house it can really impact on delivery times. Valuers can do urgent reports - an urgent report is one that usually needs to be done within 24 hours – an extra cost may apply.

Question 6: Do you fully inspect the property?

You want to be sure that your valuer will fully measure the property, and report any defects. From any property valuer complying with valuer standards – this can be expected. You may also want to know how much of this information will be in the property valuation report. Some valuers give more detail in a verbal report and put the key details in the valuation report – others provide a very comprehensive report – you can let your property valuer know what suits you.

Question 7: Are you available to discuss the valuation results and report if I have any questions?

All property valuers should be willing to go through the report contents with you and back up any findings. Many property valuers will ring you to discuss their findings once they have completed the valuation inspection and determined a market value of your house. Once all has been discussed, the report is produced and sent. Even after you receive the final valuation report your valuer should be available to discuss aspects of the report and to provide consultation.

Question 8: How will the report be delivered?

The majority of valuers will send you the final valuation report as a .pdf via email – which is great as it is convenient and fast.  It is no longer standard practice to send you an original copy of the valuation report – but it is always a good idea to get an original, signed, paper copy of the report sent to you (this may be  the only thing that a bank will accept for purposes of getting mortgage finance).

One final thing  - to be sure that they are the right valuer for you – asking to see a sample report can give you a good idea of what kind out product you will be getting.

Property Valuation NZ asks all these questions for you! Making it easy for you to choose a residential property valuer near you. Looking for a property valuer – Property Valuation NZ has all the info you need.

We're in the property valuation zone here at Propertytoolbox now that we have Property Valuation NZ up and running. On the Property Valuation NZ website we profile NZ property valuers using standardised ‘Valuer Profile’ listings and group them by region and area – so you can compare your local valuers apples for apples before you choose one.

We ask 13 questions of your local property valuers as part of the ‘Valuer Profile’ on Property Valuation NZ – in the following article there is some background as to just what those questions are all about – just what we are trying to find out and why…

The questions below aren’t the exact questions on Property Valuation NZ – some of this stuff we already have sorted just by only profiling residential valuers and grouping them by area – but these questions form the core of what you need to know about a property valuer before you hire them and why.

The Basic Questions

Question 1: Do you normally do valuations of residential property?

Property valuers value all sorts of things – commercial property, farms, lifestyle blocks, apartments and residential houses. You will get the best degree of accuracy with your valuation if you can choose a valuer with experience valuing your type of property. Some valuers do value all these types of properties – but most will have a main focus – a property type that they spend the most time valuing – with your property valuer you want this to be residential property.

Question 2: How well do you know the area that my house is in?

A familiarity with the area will give the valuation a higher degree of accuracy. The valuer will have researched similar property before, will be familiar with house sale statistics in the area, and is likely to have visited a number of houses in the area as part of their valuation work – giving them a really good basis to give you an accurate valuation.

Question 3: Do they have any alliance or association with any of the parties involved?

Valuers have a responsibility to disclose information that could be considered to affect their ability to provide an unbiased report. If there is a close conflict of interest, the valuer should refer you on to a different valuer. Question 4: Do you hold professional indemnity insurance? Just to be safe - it is a good idea to make sure that your property valuer is insured.

Question number 3 is not covered off in the Property Valuation NZ valuer profiles – so make sure to ask the valuer this one yourself when you talk to them.

Property Valuation NZ covers off as much as possible of these questions for you – making it easy for you to choose a residential property valuer near you – we like that!

So now you have the basics sorted – next Blog post we are going to discuss questions you need to ask to find out all you need to know about the valuation inspection and the report.

Looking for a registered property valuer in Wellington? Or anywhere in NZ for that matter? You need Property Valuation NZ! This new website – created by the team here at Propertytoolbox is a website dedicated to property valuation in NZ.

Why was the Property Valuation NZ website created? We wanted to make it easy for you to make an informed choice when you were choosing a property valuation professional to help you with your house purchase. The Property Valuation NZ website does this through ‘Profiling’ NZ property valuers.

Want to hear more about ‘The Profile’? Here at Propertytoolbox we have always recommended a list of standard questions to ask when you are choosing a property valuer, and we suggest that you ask these questions of a few property valuers before you make a choice. But we understand that you’re busy, and you probably will have the deadline of an ‘unconditional by’ date on a sale and purchase agreement limiting your time – so calling one property valuer is hard enough let alone 3 or more! In ‘The Profile’ we have done the question asking for you!

‘The Profile’ is a standardised listing where all property valuers answer the same essential questions about themselves and their property valuation service. Seeing all the valuers are answering the same questions in their profiles – you can compare them apples for apples. Check out the profiles of Wellington property valuers.

Property Valuation NZ also groups these valuers into local areas. This makes it easier to choose a valuer who has experience valuing houses in your area, and considers your area their ‘patch’.

The property valuer profile is a NZ first, giving you insight into your local property valuers and making it quick and easy to choose the right property valuer for you. This NZ property valuer profiling is advertising, and not all property valuers are represented. But those that are have proven themselves open and forthcoming with answers to our property valuer profile questions – that dig deeper…

And there is more – We have expanded on the information about property valuation that we have in the Propertytoolbox website and created a ‘Resources’ section on the Property Valuation NZ website – this is the best place to go to find all you need to know about property valuation related topics.

And this is all in one place - on Propertyvaluationnz.co.nz – we hope we have made it easy and convenient for you to read about and choose a property valuer near you – helping you to make a confident house buying decision.

Currently we only profile property valuers in Wellington, sorry about that! But we will be rolling out all over NZ in the coming months – Property valuers in Auckland, then Christchurch property valuers, and then pretty much property valuers everywhere else in NZ will soon be profile on Property Valuation NZ so watch this space…

So if you are looking for a property valuer in Wellington, or maybe a property valuer in Lower Hutt, or perhaps even a Kapiti Coast property valuer - check out our current registered property valuer profiles on Property Valuation NZ.

Launching the new website has all the team here at Propertytoolbox thinking about property valuation so for the next few weeks we are going to be focusing on property valuation in the Propertytoolbox Blog. Next weeks article – those infamous questions – just what to ask your property valuer before you choose them and why…

Want an instant property valuation information download – Heres all the property valuation information you will need.

There are many things to be aware of when buying a home, it really can be a minefield! One person to carefully listen to the advice of is your property lawyer. They have been through the house buying and selling process with many clients and have lots of great advice - and coming from the legal corner - it is always good advice to pay attention to!

Thanks to the team at Homelegal we have a property lawyers view of 'traps for home buyers'. Read and beware!

Traps

1. Misunderstanding the type of property

There are various types of property including fee simple, crosslease, unit title, company share and leaseholds. Each has advantages and disadvantages that you should be aware of prior to purchasing. Misunderstanding the type of property you are purchasing or the interests in the land may result in an unexpected impact on your enjoyment and use of the property.

2. Misunderstanding the agent's role

Always remember the real estate agent is trying to sell the property at the best possible price for the vendor (the person selling the property). Don't show all your cards to the agent at the outset and don't disclose your financial limit to them.

3. Signing agreement under pressure

Putting in an offer can be exciting. Don't feel compelled to sign an Agreement straightaway. Once an Agreement is signed it is a legally binding contract. Make sure you understand what it is you are signing. Get your lawyer to look over it.  If you are unable to make contact with your lawyer get the agent to include a solicitor's approval clause.

4. Insufficient conditions

You have an obligation of good faith to the vendor. You can't use a finance clause, for example, to get out of an agreement if you have simply changed your mind. Carefully consider the reports you wish to obtain on the property before you sign e.g. builder's report, valuation report or LIM report. If any of these reports do not meet the standard you require you are able to cancel the Agreement. However as soon as the conditions relating to the reports are formally confirmed the Agreement is binding on you.

5. Deemed consent conditions

Avoid conditions that are deemed to be satisfied unless you notify the vendor. These are dangerous. If you don't confirm or notify the vendor that the condition is not satisfied they are deemed to be satisfied.

These house buying traps were provided by the team at Homelegal. Looking for more home buying advice? Check out our home buying guide, or to find out just what a lawyer is doing for you during the house buying process our Settlement section has a lot of interesting info.

It is always a good idea to get a building inspection before you commit to buying a house – either before making an offer or as a condition in your sale and purchase agreement.

When you get a building inspection done you are hoping that everything comes out OK, with maybe the odd minor maintenance issue identified here or there in the building report – but what if there is something unexpected, something big, something that leaves you dazed and confused? Here is a summary of our advice on what to do…

First things first – are you still thinking of buying the house? If not – this is the easy bit – walk away! Tell your lawyer you are not going unconditional, or just don’t make that offer – easy! Or maybe not so easy as you have already invested time, money and emotion into the house...

So you are still interested in buying the house.  Now you need to work out how serious the problem is – a good person to question initially is your building inspector – you need to make sure that you fully understand the problem that they have identified in the building report. Remember, your building inspector is not an expert in all aspects of building so if a particular problem has been identified it is best to speak to, or get quotes from, an expert in the area.

Now that you have the full picture of the extent and cost of the problem you can make a decision with all the facts to hand. Now you can walk away, or continue as if nothing has changed, or begin re-negotiations with the vendor - either negotiating down the price or asking the vendor to fix what is wrong with the house.

If you have obtained this building inspection before even beginning negotiations you are now in a much stronger negotiating position. You can start price negotiations fully armed with exactly what is going on with the house and adjust your price accordingly.

If you and the vendor come to an agreement that involves the vendor having to complete work, or anything changes on a previously agreed sale and purchase agreement, or anything else at all, this needs to be formalised in the sale and purchase agreement by your lawyer.

Finding something wrong during a building inspection is the main reason why you need to give yourself plenty of time to get a building inspection done – at least 5 working days is a minimum! You never know what you are going to find, and what processes you are going to have to go through after getting the building inspection and reading the building report.  So give yourself plenty of time and don't rush any decisions.

For a more comprehensive rundown of your options when there is something wrong with the building inspection – head here.

We have more great advice, tips and information about house buying in our house buying guide - make sure to check out the section 'I've found a house!'
 
 




 
 

Here at Propertytoolbox we are a big fan of open homes, we like to have a good look around at a lot of houses so that we can get a good feel for what is out there, how much people want, and even seeing how many people are turning up to open homes is a good fact to have tucked away.

Often, 'liking a house' can take you by surprise, especially if you have seen a lot of houses, and been to a lot of open homes. If you can feel your interest in a house stirring as you look around, calm down and make an effort to look at these things. These are 10 easy things to remember that will give you a good idea of what is going on with the house.

1. Is there any smell?
2. Are the floors uneven?
3. What is the light/sun situation?
4. Are the rooms a decent size and shape?
5. Are there wardrobes in all the bedrooms and additional storage?
6. Where is the laundry and washing line?
7. Has anywhere inside been 'knocked through', 'extended' or 'filled in'?
8. Can you fit your car in the garage?
9. What does the neighbours house and section look like?
10. It is the best/worst house in the street?

It is surprising how quickly your thoughts can change about a house when you find your neighbours have two car wrecks in the backyard and the house gets no afternoon sun.

What do all these things mean? And just how big should a bedroom and garage be? All this home buying information is here.

This quick checklist is not a substitute for a building inspection, but is a good way to make yourself have a good look around.

Someone asked Propertytoolbox about whether buying a cheap apartment was a good idea. The theory being that the apartment would be a way to get onto the property ladder (they could afford the deposit and the mortgage repayments), it would only be held onto for a short time, it would grow in value, and then could be sold and the extra cash could be used to buy a nice home.

This is an interesting question, and many people do consider this kind of thing, but here are some key things you should bear in mind...

In theory an apartment should be easier to save a deposit for, as they are in general cheaper than your average residential house. But, in the majority of cases banks will not lend you 80% on an apartment, these days the figure will be 50%-70%! So a bigger deposit is needed and this straight away indicates that even your bank thinks apartments are a high risk investment.

Using the word 'investment' is pretty key too - if the IRD thinks that you are buying and selling a property to make money they will tax your profits - check out this house buying and investment income info from the IRD to find out more about this.

Also there are some additional costs associated with apartment ownership. On top of your usual rates and insurance you have body corporate fees and these are not cheap! Body corporate fees are basically your contribution to the upkeep of the shared areas of the apartment i.e. the exterior, the grounds, the lifts etc.

There is a great guide put out by Auckland regional council about the body corporate it is an eye opener! One of the worst assumptions you can make when buying an apartment is that the body corporate fees will not go up! This ongoing cost, when added to the other regular expenses of mortgage, rates and insurance makes for a hefty monthly bill.

Also, there is an assumption that your apartment will increase in value over (a short?) period of time, this is something nobody can predict. The housing/apartment market could go either way, or stay the same... And, that home you want is changing in value to...

Finally, all apartments are definitely not created equal! When you are looking at an apartment to buy - do your research carefully. Cheap apartments are usually cheap for a reason.

These are just a few things to get you thinking about apartment buying. So before you leap into apartment buying because it seems affordable, have a good think about why you are doing it, it may be better just to save more of a deposit, or maybe you need to think a bit more about what you really want in a house - maybe with a bit of compromise, a good house, with potential to be a good home is available and affordable...