What today's buyers need to know

First steps on the property ladder: What today’s buyers need to know

For many first home buyers, entering the property market can feel equal parts exciting and overwhelming. Between fluctuating prices, endless listings, finance hurdles and the emotional rollercoaster of open homes, it’s easy to see why many buyers feel paralysed before they even make their first offer.

But according to Bayleys salespeople Jevin Chao and Matthew Haines from Team Jev and Matt, preparation and clarity are often the difference between buyers successfully securing a property and becoming stuck in a cycle of frustration and disappointment.

Working predominantly in Auckland’s Hobsonville Point market, an area popular with first home buyers, the pair have seen firsthand the common pitfalls many buyers fall into, and the strategies that can help them navigate the process more confidently.

“Not being prepared is probably the biggest mistake,” says Matt.

“Buyers need to understand where they can actually transact and what level they can be pre-approved for. Otherwise, they don’t really know what segment of the market they should be looking in.”

That lack of preparation, he says, can quickly become emotionally draining.

“It’s heart-wrenching because buyers finally find something they love, but if they haven’t done the groundwork and don’t understand what they can realistically afford, they suddenly realise the property is out of reach. In some cases, they end up giving up entirely.”

So where do you begin?

KNOW YOUR BUDGET BEFORE YOU FALL IN LOVE

In today’s market, buyers are spoiled for choice and while that creates opportunity, it can also create confusion. Jev says many first home buyers are becoming overwhelmed by the sheer number of listings available.

“There are more options out there than we’ve seen for years.”

“What we’re finding is buyers are getting confused and overwhelmed, and when the right opportunity actually comes along, they’re only then starting the preparation process from the beginning, which can take time and cause them to miss out.”

He says that’s why speaking with a mortgage broker or bank before beginning the property search is essential. “Understanding your borrowing power early helps narrow the search and prevents buyers from wasting time emotionally investing in homes outside their budget.”

It also allows buyers to compare apples with apples.

“If buyers know what bracket they’re in, they can actually start understanding what they can get for their money in different areas,” says Matt.

“They can compare locations, property types and features properly, instead of just chasing dream homes that may never have been realistic in the first place.”

SEPARATE THE MUST-HAVES FROM THE NICE-TO-HAVES

One of the biggest mindset shifts for first home buyers is accepting that compromise is almost inevitable. That doesn’t mean settling for the wrong property, it means understanding what matters most.

Matt says buyers should create two separate lists before seriously searching - the non-negotiables and nice-to-haves.

“The reality is they’re probably never going to find something that ticks absolutely every box.”

“One property might have the location they love but not the garage. Another might have the bigger kitchen but not the outdoor space. It becomes about weighing up what’s most important to them.”

Location is often one of the biggest trade-offs buyers grapple with.

A buyer may be able to secure a larger home further out from the city, but sacrifice the lifestyle, school zones or commuting convenience they originally wanted.

“Some buyers prioritise lifestyle and location over size.”

“Others just want the biggest house possible for their budget. It’s very personal and comes down to the goal they’re trying to achieve.”

Jev says when compromises do need to be made, buyers should focus on things they can change versus things they can’t.

“If you don’t like the kitchen, that can potentially be changed later.”

“But things like the layout or aspects of the property you can’t realistically alter - those are the things buyers shouldn’t compromise on.”

THINK BEYOND TODAY

While purchasing a first home is often driven by immediate lifestyle needs, buyers should also think about how the property may serve them in the future.

For some buyers, that means considering resale potential. For others, it’s about future flexibility.

Jev says location becomes especially important when long-term value or future saleability are priorities.

“In a changing market, location is always important.”

“We often ask buyers how long they plan on staying in the property. If they think they might move overseas later or potentially rent it out, then they should probably be looking for something more transactional, somewhere that will always have strong buyer demand.”

On the other hand, buyers prioritising space and family living may choose to purchase further from central suburbs if it means securing a larger property.

Again, the key is understanding the purpose behind the purchase.

DON’T UNDERESTIMATE THE HIDDEN COSTS

For many first home buyers, the deposit feels like the major hurdle. But Jev and Matt say the additional costs involved in purchasing property are often underestimated.

Building reports, LIM reports, legal fees and finance costs can quickly add up, particularly if buyers repeatedly enter negotiations or auctions unsuccessfully.

“We’ve seen buyers spend thousands of dollars because they weren’t properly prepared,” says Matt.

“One buyer thought they could purchase a property without actually confirming finance properly first. They spent money on legal work and due diligence, only to discover they couldn’t secure the lending they needed.”

Jev says those costs can escalate quickly.

“We’ve heard stories ranging from a couple of thousand dollars to buyers spending seven or eight thousand dollars trying to buy at auction without fully understanding where they’re at financially.”

The lesson, they say, is simple: do the groundwork before making offers.

NEW BUILD OR RENOVATION PROJECT?

Another common dilemma for first home buyers is whether to purchase a brand-new home or an older property with renovation potential.

According to Matt, the answer largely depends on lifestyle and long-term goals.

“If buyers want that lock-up-and-leave lifestyle and value a newer home and newer community, then a new build can absolutely make sense.”

But for buyers willing to take on a little work, older homes can create opportunities to add value over time. “If you’re comparing properties in the same location, then often the older home will sit on a larger piece of land,” says Jev.

“In this market, buyers can potentially add more value by buying something that needs a bit of work. Then when the market improves again, there’s the possibility for greater return.”

Of course, renovations aren’t for everyone and for some buyers, the certainty and simplicity of a turnkey property outweigh the appeal of future value-add potential.

DON’T LET EMOTION CLOUD JUDGEMENT

Buying a first home is emotional, and understandably so. But Jev says buyers need to remain aware of how quickly emotion can influence decision-making.

“Buyers often remember how a property made them feel more than the actual details of the house.”

Simple presentation factors can dramatically impact perception.

“We’ve seen properties where the lights weren’t on or the house felt cold and vacant, and buyers walked straight back out,” he says.

That’s why it’s important for buyers to slow down and assess properties practically, not just emotionally.

Things like dampness, condensation, noise levels, surrounding development and community feel should all be carefully considered.

“The smell and dampness are definitely things buyers should pay attention to,” says Jev.

“And buyers should also look at what’s happening around the property. Is the land behind it likely to be developed? What’s the wider community like?”

Matt says buyers now have access to more information than ever before and should take advantage of it. “There’s so much information online now. Buyers can research the area, look at past sales and ask questions.”

ASK QUESTIONS AND LEAN ON EXPERTS

Perhaps the biggest piece of advice both agents offer is not to try and navigate the process alone.

Whether it’s mortgage brokers, lawyers or trusted agents, surrounding yourself with experienced professionals can make the process significantly less stressful.

“The more buyers open up to an agent they trust, the more we can help them,” says Matt.

“It’s not just about selling one property. It’s about helping buyers get from point A to point B, whether that’s recommending a mortgage broker, helping them understand a market, or even identifying off-market opportunities.”

And in a market where buyers have more choice than they’ve had in years, that guidance can prove invaluable.

“It’s an exciting time to buy, but preparation is key.”