Free Resource โ The Value-Add Brief
25 Free Due Diligence Checks
Before You Make an Offer
Every piece of free research you should do before putting pen to paper โ organised by the 5 things that matter most. No paid reports. No fluff. Just what works in the NZ market.
โ 25 actionable checks
โ NZ-specific tools & links
โ Pre-offer stage only
โ $0 cost
How to use this checklist
Work through each section before putting in your offer. You don't need every box ticked โ but the more you complete, the more confident your offer will be. Focus especially on Price and Condition โ these two sections have the biggest impact on what you offer and why.
1
Price
5 checks โ How much should you actually be paying?
Check 01
Search homes.co.nz for recently sold properties within 1km of your target
Your primary free tool for comparable sales in NZ. Filter by "sold" and sort by proximity. homes.co.nz โ
Check 02
Find 5โ10 comparable sales from the last 3โ6 months
Recency matters. Sales older than 6 months are less reliable in a moving market. Fewer than 5 comparables and you don't have a reliable picture.
Check 03
Compare each sale carefully โ land size, bedrooms, condition, and street
Don't just look at the price. A 3-bed on a busy road is not the same comp as a 3-bed on a quiet cul-de-sac. Adjust your thinking for each difference you spot.
Check 04
Ask the listing agent what comparable sales they are basing their price guidance on
Agents must have evidence for their price guidance โ ask to see it. Then compare their comparables against yours. Are they using the best ones, or just the most favourable?
Check 05
Note the CV (Council Valuation) โ but do not base your offer on it Common Trap
The CV is updated infrequently and regularly diverges from actual market value โ in either direction. Use it as a loose reference only. Your comparable sales are far more reliable.
2
Outcome
6 checks โ Does this property suit your intended strategy?
Check 06
Check the zoning on your local council GIS map
Christchurch: canterburymaps.govt.nz | districtplan.ccc.govt.nz. All other regions: search "[your region] council GIS map." Zoning determines what you can legally do with the land.
Check 07
Confirm what is permitted on the land under your district plan
Can you add a sleep-out? Subdivide? Build a second dwelling? Don't assume โ check what your zone actually allows before your numbers depend on it. Not sure what work needs a consent? Download the free No Consent Renovation Guide โ
Check 08
Research what similar properties rent for in the area
Check Trade Me Property and realestate.co.nz for current listings nearby. This gives you a rental yield estimate before you commit to a strategy. You can also ask a local property manager for their advice on this.
Check 09
Identify your 1โ2 most realistic value-add options for this specific property
Renovation and hold? Flip? Subdivide? Having options is great โ but go into your offer knowing which 1โ2 are most likely. This shapes your price, your entity, and your conditions.
Check 10
Estimate your post-renovation value using your comparable sales research
What will this property realistically be worth after your intended work? Use your comp sales as the ceiling. The gap between today's price and that ceiling is your opportunity.
Check 11
Ask the agent: "If I do [your planned renovation], what do you think this property would be worth?"
Agents know the market. A good one will give you a straight answer. Be specific about what you plan to do โ "if I modernise the kitchen and bathroom and repaint throughout, what are we looking at?" Their answer either validates your numbers or gives you pause. Either way, it's valuable.
3
Finance
3 checks โ Can you actually buy this?
Check 12
Confirm your deposit โ aim for 3โ5% minimum to cover purchase costs
Your deposit doesn't have to be 10%. In some structures it can be as low as $1. But know your number before you offer so you're not scrambling after acceptance.
Check 13
Know your usable equity and/or pre-approval status before you start searching
Being pre-approved is your biggest advantage in a competitive market. It lets you move fast, reduce conditions, and sometimes go unconditional. Talk to a mortgage advisor before you get serious.
Check 14
Have a rough renovation budget estimate in mind before you offer
You don't need exact quotes at this stage. But you need a ballpark so your offer price reflects the full cost of the deal โ not just what's on the listing.
4
Condition
8 checks โ What can you see yourself at the open home?
Check 15
Check under every sink and around toilets for leaks or moisture damage High Priority
Open the cabinet under every sink. Look for water marks, mould, soft flooring, or rust. These are signs of slow leaks that may have been present โ and worsening โ for years.
Check 16
Turn on every tap โ check water pressure and watch that water drains away freely High Priority
Low pressure can signal aging pipes or supply issues. For drainage, watch inside the sink โ water should clear quickly with no gurgling. Then go outside and check the gully traps (the open drain points around the house perimeter) to confirm wastewater is flowing away properly.
Check 17
Inspect gutters and downpipes from the street โ intact, clear, and connected?
Blocked or broken gutters direct water against the house. Look for sagging, rust, separation from the fascia, or downpipes draining onto the ground rather than away from the foundation.
Check 18
Check the condition of all flooring โ lift rugs and mats where possible
Replacing flooring throughout a house can cost $10,000โ$15,000+. Soft spots, staining, or cracked tiles can indicate water damage or structural movement beneath. Always look under what's covering it.
Check 19
Assess internal and external paint โ look for peeling, bubbling, or mould High Priority
A full interior and exterior repaint can run $10,000โ$15,000. Peeling or bubbling exterior paint often signals moisture trapped inside the cladding โ a far bigger problem than the paint itself.
Check 20
Check the switchboard โ modern circuit breakers, or old-style fuses? High Priority
An old fuse board often means the entire electrical system needs upgrading to meet current standards โ a $10,000โ$15,000 job. Modern switchboards have clearly labelled circuit breakers with RCDs.
Check 21
Look for old-fashioned outlets and switches โ these signal outdated wiring throughout
If the power points and light switches look like they belong in another era, the wiring likely does too. Assume the whole house may need rewiring and factor that cost into your offer.
Check 22
Check insulation โ open the manhole if accessible, ask about underfloor insulation
Ceiling and underfloor insulation are now required under the Healthy Homes Standards for rentals. If it's missing or inadequate, factor in retrofitting costs โ typically $2,000โ$5,000 depending on the house size.
๐ก Note: You don't need a builder's report before your offer โ that's a condition you add to the contract. But these checks give you enough to decide whether a property is worth pursuing at all.
5
Entity
3 checks โ Who is buying this property?
Check 23
Decide what entity will be purchasing โ personal name, company, or trust?
Your intended outcome changes this. Planning to flip? A GST-registered company may be the right structure. Long-term hold? A trust or personal name may suit better. Talk to your accountant before you offer.
Check 24
If using a company, confirm it is set up and ready before you start making offers
You can't set up a company after you've already put in an offer in that entity's name. Have your structure sorted before you start searching seriously.
Check 25
Ensure "and/or nominee" is NOT crossed out on the offer form Do Not Miss
This clause lets you transfer the purchase to a different entity after your offer is accepted โ without losing the deal. If it's crossed out, you lose that flexibility. Always check before you sign.
Ready to go further?
You've done the free research.
Now let's turn it into an offer.
This checklist is the foundation. Knowing what to look for and knowing what to do with it are two different things. Here's where to go next.
Not sure which is right for you? The course gives you the complete system at your own pace. The strategy session is ideal if you have a specific property in mind and want expert eyes on your deal.
