If you're buying your first home, you're going to encounter real estate agents early in the process. They’ll show you through open homes, talk to you about offers, and guide you through parts of the buying process. But one important thing many first-home buyers don't realise is that while agents may seem helpful, they're not actually working for you.
At Luminate Financial Group, we work with first-home buyers every day. One of the most common questions we hear is: "How do I deal with the agent?" In this guide, we explain what to expect, how to protect yourself, and how to get the most out of working with agents while keeping your interests front and centre.
Who Does the Real Estate Agent Actually Represent?
In New Zealand, a real estate agent’s legal obligation is to act in the best interests of the seller. That’s who hires them, who pays their commission, and who they are accountable to. Their role is to sell the property for the best price and on terms that suit the vendor.
This doesn’t mean they are working against you, but it does mean you should be cautious about what you share. The agent is not your adviser. Their job is to get the property sold, not to help you negotiate a bargain or highlight risks in the paperwork. That’s why having your own team, such as a mortgage adviser and a property lawyer, is essential.
Be Careful What You Share
When you attend open homes or enquire about a property, agents will often ask if you're pre-approved, what your budget is, and whether you're ready to make an offer.
You should always be polite and honest, but you don’t need to reveal your full financial picture. Avoid disclosing your maximum borrowing amount or how emotionally invested you are in a particular property.
It’s better to say something like, "Yes, we’re pre-approved and actively looking, but we’re still comparing options and doing our due diligence." This keeps you in control and prevents the agent from using your position to influence the seller’s negotiation strategy.
Ask Questions and Listen Closely
When you’re interested in a property, it’s important to ask questions. You could ask how long it has been on the market, whether there have been price reductions, or if the vendor is motivated to sell. Also ask about the property’s title type, any unconsented work, and whether a LIM or builder’s report is available.
Remember, while agents are required to answer truthfully, they won’t always volunteer everything. Pay close attention to what they say and how they say it. If something seems vague or glossed over, dig deeper and get your lawyer to verify anything critical.
Take Notes as You Go
After a few weekends of open homes, things can get confusing. Keep a simple log of properties you’ve seen, agent names, feedback they gave, and anything you noticed that stood out. This will help you compare options later, especially if you’re making offers or shortlisting homes.
Be Aware of Sales Tactics
Agents are trained negotiators. You may hear phrases like, "This one won’t last long," or "There’s already strong interest." These comments are common, and while sometimes true, they are also designed to prompt action.
Don’t let pressure force you into a rushed decision. Stay grounded in your pre-approval limits, your own property goals, and your legal and financial advice. If you ever feel unsure, pause and get guidance before moving forward.
Know the Difference Between Private Treaty and Auction
When you make an offer through a negotiation process, you can usually include conditions like finance, a building inspection, or a LIM report. This gives you time to complete checks before the purchase becomes legally binding.
At auction, it’s different. If you win the bid, the contract is unconditional. You need to have finance approved and all checks done before you raise your hand. If you’re planning to bid at auction, talk to us well ahead of time so we can help you prepare properly.
Do You Need a Buyer’s Agent?
Buyer’s agents, who act only for buyers, are not widely used in New Zealand. Most first-home buyers rely on a team that includes a mortgage adviser, a solicitor, and sometimes a family member or friend who has been through the process.
At Luminate, we act as your advocate and guide. We help you understand what the bank will accept, review key documents, liaise with agents and lawyers, and keep you on track through the entire process.
Final Thoughts
Agents play an important role in most property sales, but they are working for the seller. As a first-home buyer, you need to be strategic, informed, and supported.
Stay calm, ask the right questions, and work with your own team to make sure your interests are protected at every stage. Buying your first home can be exciting, but only if you’re well prepared and in control of the process.
Want help dealing with agents and finding the right property?
Book your free First-Home Planning Session with Luminate.
We’ll help you get pre-approved, understand what to ask, and support you from first viewing to getting the keys.
Visit www.luminate.co.nz | Email us at askus@luminate.co.nz | Call 0800 333 400
