Warning: Hidden property dangers of no due diligence

View of housing and Auckland City from Mount Victoria Devonport today. Photo / Doug Sherring

Aucklanders snapping up out-of-town property unseen as they find themselves priced out of the city's inflated market have prompted warnings about the hidden dangers of not getting expert checks.

Real Estate Institute chief executive Colleen Milne said due diligence - an information-gathering step for buyer's protection - could save buying a house with defects or that didn't meet expectations.

Auckland-based Home Inspections owner and builder John Dedden said he was aware of many homebuyers who were skipping a builder's report, and this posed great risk for buyers.

Mr Dedden recently conducted an inspection for a homeowner who didn't get a report before they bought their house.

It revealed a litany of problems that he said were probably present before the sale.

"People think they are going to save money but in the long term it could cost many more thousands to rectify anything," Mr Dedden said.

Mortgage Link broker Stuart Wills said his clients usually completed due diligence, but he had heard of people buying houses unseen.

He said buyers needed to take some responsibility themselves. "Realistically, they need to seek legal advice, seek advice on property and get a builder's report."

ASB Bank head of home lending Vince Clark said buying a home was a big commitment, so ensuring the property met expectations was important.

"It is therefore extremely important for customers to conduct proper due diligence by using the appropriate professional advisers to identify any issues before committing to a contract."