The Rise of the American Buyer

The Rise of the American Buyer: What we have seen workingwith American buyers over the past 12 months.

While the media may be overhyping the great rush ofAmericans racing to New Zealand to buy up property, it is true that a steadyincrease of American buyers are appearing on the horizon in the New Zealandreal estate market.

Martelli Buyers Agents has seen a 180% increase in enquiriesfrom Americans preparing to buy their first Auckland home. Our enquiries andclients have come from California and Texas to Florida, Illinois, Tennessee andColorado.

Yes, some are moving here via the Active Investor Plus (AIP)Visa, while others are arriving through resident visas and applying for consentto purchase via the OIO (Overseas Investment Office) pathway. The idea that allAmericans are exceptionally wealthy and looking for a part time holiday homeover $5,000,000 is incorrect; the vast majority of our clients are makingAuckland their long term permanent home.

They tell us a variety of incentives for their move. Forsome, the political climate of the USA doesn’t align with their values, forothers it’s a fear of growing threats of war and increasing crime. For many,they had a vision of New Zealand as green, clean, tranquil and calm which hasbecome more accessible with the AIP Visa in 2026. A weak $NZ dollar, a flatproperty market, emerging investment opportunities, and a wide selection ofbeautiful homes helps their cause. The common theme for these buyers is wantingsolid advice on where they should buy, what they should buy, how they willdevelop new friendships and communities, and what they must avoid at all costs.

Buyer’s agent are common place in the USA so the increase inenquiry is not surprising. What is emerging however is a frustration andconfusion for buyers trying to understand the New Zealand real estate market.Here are the most common ones:

1. The sale methodologies are confusing

Tender, auction and negotiation methods baffle buyers notused to them. To be fair, many of our local buyers ask the same question. Wherethere is an asking price, how do they know if they should offer this or 10%below? Why would an gent chose negotiation over auction?

2. They don’t want to be fleeced for having an accent

I like to think our industry treats all people fairly andacts with integrity. Unfortunately, we know some agents and vendors see aforeign buyer as ripe to pay top dollar, or buy a home without understandingthe intricacies, and the first giveaway is their accent and passport. As ourrecent Californian clients said “we don’t want agents knowing we aren’t fromhere”

In Anthony Kiedis’s biography Scar Tissue, the Red HotChilli Peppers vocalist references a New Zealand home he purchased sight unseenthat he overpaid for and didn’t realise was in a high rainfall area. If only abuyer’s agent had been there to give him better advice.

3. Due diligence surprises

American buyers are often surprised by how muchresponsibility rests with the purchaser in New Zealand. They are quicklylearning about unconsented works, drainage and slipping risks, zoning changesand threats of losing your view, body corporate rules and what can go wrong.This isn’t the Kiwi dream they had envisaged. Our most recent purchase for anAmerican buyer in Parnell involved two building inspections, a builder to site,a geotechnical engineer and a town planner. Having the best possible team aroundyou is essential if you don’t know the (literal) lay of the land.

4. Building surprises

In such a small and isolated market, building costs inAuckland can be higher than American buyers expect, while the normal inclusionsof an American home can be luxuries here. Features that are often consideredstandard in the United States, such as double glazing, high-quality insulation,central heating, larger garages and multiple living areas, are upgrades in NewZealand and you will have to pay handsomely for them. We are highly regulatedin our building codes too, so they idea of having your dream home designed,consented and ready to move into in a limited timeframe and in line with a USAbudget is rarely a reality.

5. The scenery in the movies and the reality are not thesame.

I was speaking to a family from Massachusetts who liked thelook of Takapuna and wanted a beachside home near the city but also asked wherethey could keep horses nearby. When we sidetracked to Coatesville, theydiscovered a 40 to 60 minute drive to the CBD. We don’t have mega highways andextensive public transport networks: the drivetime to work often dictates thehome.

6. They want how much?

One of the biggest lessons is that location often mattersmore than land size. A character villa on 500 square metres in Herne Bay maycost as much as a much larger home on 2,000 square metres in Epsom. Coastal,walkable and village-style suburbs command a significant premium because oflifestyle, school zones, scarcity and proximity to amenities, bit also comewith more risks – erosion, built out views, zoning changes. The correlationbetween home values, home styles and location is not linear.

Summary: A different market, not difficult buyers

American buyers are not difficult. They are making decisionsin a property market that operates differently from the one they know. Theywant clear advice on sale methods, pricing, due diligence, developmentpotential, building costs and the trade-offs between different Aucklandsuburbs, while also managing the emotional load of leaving their home countryand moving to a new one.

At Martelli Buyers Agents, we help American andinternational buyers understand what they are buying, what it is worth and whatcould go wrong. We provide independent advice, manage the due diligence processand help clients focus on properties that suit their budget, priorities andlong-term plans.

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