How To Make An Offer

Before you make any offer

Talk to your lawyer before you sign anything

This is the most important thing on this page. Do not sign a sale and purchase agreement without your lawyer reviewing it first. Once you sign, you are entering into a legal contract — and while conditions give you some protection, the process moves quickly and the stakes are high. Get a property lawyer sorted before you start attending open homes, so they are ready to review an agreement at short notice when you find the right property. Alongside your lawyer, make sure you have a mortgage pre-approval in place so you know your borrowing limit and can move with confidence.

How an offer works

The sale and purchase agreement

What it is

Every offer in New Zealand is made on a standard document called a sale and purchase agreement (also called an S&P). This is a legally binding contract that sets out the purchase price, settlement date, deposit amount, chattels, and any conditions attached to your offer.

Who prepares it

The real estate agent typically prepares the initial agreement using the standard ADLS/REINZ form. Your lawyer should review it before you sign — they will check the title, flag anything unusual, and advise you on any changes to include.

What you decide

Before signing, you agree on the price you are offering, the settlement date, the deposit amount, any chattels you want included (such as whiteware or curtains), and any conditions you want to attach to the offer.

Setting your price

How to decide

Research comparable sales in the area — what similar properties have sold for recently. Your real estate agent can provide recent comparable sales data, and sites like OneRoof and homes.co.nz publish sales history. Your offer should reflect what you genuinely believe the property is worth and what you are willing to pay.

Knowing your ceiling

Before you make an offer — especially in a multi-offer or auction situation — know your maximum. Your pre-approval gives you a borrowing limit, and your mortgage adviser can help you understand exactly what your repayments would look like at different price points. Decide on your ceiling before emotions take over.

Asking price vs sale price

An asking price or "offers over" figure is a starting point — not necessarily where the property will sell. Properties can sell above or below the listed price depending on the market and buyer interest. Do your research rather than anchoring to the advertised figure.

The two deposits — understanding the difference

Two separate deposits

There are two different deposits involved in buying a property in New Zealand and they are often confused. The first is your mortgage deposit — the money you are contributing toward the purchase price (from savings, KiwiSaver, gifted funds, or equity). The second is the sale and purchase agreement deposit — a holding deposit paid to the agent's trust account once your offer goes unconditional. These are two completely separate things.

S&P deposit — how much

The sale and purchase agreement deposit is typically 10% of the purchase price. However, this is negotiable. If you have less than 10% available — for example, if your deposit is partly in KiwiSaver and you cannot withdraw it until settlement — you can negotiate a lower deposit amount with the vendor. This is common and most vendors will agree to a reduced deposit if the overall offer is strong. Your lawyer can help you negotiate this.

When it is paid

The S&P deposit is paid once all conditions are satisfied and your offer becomes unconditional. It sits in the agent's trust account until settlement, at which point it is applied toward the purchase price. If you are buying at auction, the deposit is due on the day. At tender, it is typically submitted with the offer.

What happens to it

If a condition is not met and you withdraw from the agreement within the conditions period, your deposit is returned in full. If you pull out of an unconditional contract, you risk forfeiting the deposit and may face further legal consequences. Once unconditional, you are fully committed.

Settlement date

What it is

The settlement date is the agreed date on which legal ownership transfers from the vendor to you and the purchase price is paid. Both parties agree on this date when the offer is made — it is recorded in the sale and purchase agreement.

How long typically

Settlement dates are often four to eight weeks after the offer is accepted, though they can be shorter or longer by agreement. A longer settlement gives you more time to arrange moving, but means you are committed for longer. A shorter settlement may appeal to a vendor wanting to move quickly.

Using it strategically

A settlement date that suits the vendor — such as aligning with their own purchase — can make your offer more attractive even if the price is similar to a competing offer. It is worth asking the agent what settlement date the vendor prefers.

Conditions — what you can include

A conditional offer means your offer only becomes binding once certain conditions are satisfied within an agreed timeframe. If a condition is not met, you can withdraw without penalty. These are the most common conditions used in NZ property purchases.

Very common

Finance condition

Your offer is conditional on your lender providing formal finance approval for the property. Even with a pre-approval in place, lenders still need to assess the specific property before issuing final approval. A finance condition gives you time to get this confirmed — typically five to ten working days. This is one of the most important conditions for any buyer using a mortgage.

Very common

Building inspection

Your offer is conditional on a satisfactory building inspection by a licensed inspector of your choice. The inspection identifies any defects, maintenance issues, or potential problems with the property. If significant issues are found you can walk away, or use the findings to renegotiate the price.

Common

LIM report

A Land Information Memorandum (LIM) is a report from the local council containing all the information the council holds about the property — including consents, zoning, hazards, and rates. Your lawyer will usually recommend getting one. A LIM condition gives you time to obtain and review it before committing.

Sometimes used

Sale of existing property

If you need to sell your current home to fund the purchase, you can make your offer conditional on your existing property selling. Vendors are often less keen on this condition as it introduces uncertainty. It may be less competitive in a multi-offer situation, but it protects you from owning two properties at once.

Sometimes used

Lawyer's approval

A condition giving your lawyer a set number of working days to review the agreement and raise any concerns before you are committed. Often used as a catch-all to give your solicitor time to check the title and agreement.

⚠️

Unconditional offers carry significant risk. Once you go unconditional — either by waiving conditions or having them satisfied — you are legally committed to the purchase. If you cannot complete the sale for any reason, you risk losing your deposit and facing legal action from the vendor. Never go unconditional until your finance is confirmed and your due diligence is complete.

What happens after you submit your offer

✅

Vendor accepts

The vendor signs the agreement and your offer is accepted. You then work through any conditions within the agreed timeframes. Once all conditions are satisfied, the agreement becomes unconditional and the sale is binding.

🔄

Vendor counter-offers

The vendor may change the price, settlement date, or other terms and sign back to you as a counter-offer. You can accept the counter-offer, make your own counter back, or walk away. This back-and-forth continues until both parties agree or negotiations break down.

❌

Vendor declines

The vendor may simply decline your offer — particularly if another offer is already under negotiation or if your offer is too far from their expectations. Your offer lapses and you are free to move on. Nothing is signed and there is no obligation on either party.

👥

Multi-offer situation

If another buyer makes an offer while yours is being considered, the sale becomes a multi-offer process. All parties are notified and invited to submit their best offer. The vendor can choose any offer — not necessarily the highest. Submit your best genuine offer and do not hold back expecting to negotiate further.

Chattels — what is included in the sale

Chattels are the movable items that can be included or excluded from a property sale. The standard agreement lists common chattels, but you should always check and negotiate what is staying and what is going.

🏠

Typically included

Floor coverings, window treatments (curtains and blinds), light fittings, dishwasher, heated towel rails, TV aerials and satellite dishes, heat pumps, and any item fixed to the property. Always check the agreement — what is listed is what you get.

📦

Worth negotiating

Whiteware (fridge, washing machine, dryer), outdoor furniture, garden sheds, trampolines, and any appliances you want to stay. If you want something included, list it specifically in the agreement — do not assume it will be there at settlement.

💡

Do a final walkthrough before settlement. You are entitled to a pre-settlement inspection — usually the day before or the morning of settlement. Check that everything listed in the agreement is still there and in the same condition as when you made your offer. If something is missing or damaged, contact your lawyer immediately before settlement is completed.

Ready to make your first offer? Get your pre-approval sorted first and you will be in the strongest possible position when the right property comes along.

Get in touch →

This guide is for general information purposes only and does not constitute legal or financial advice. Always have your lawyer review the sale and purchase agreement before signing. For mortgage advice tailored to your situation, get in touch with Briana McDonagh.