Buying at Auction

Buying a property at auction is often a simple and straightforward process. It’s quick, transparent, and can be a great way to secure the property you want. Our licensed salespeople are skilled in this process and can assist you throughout. Once you’ve identified a property, follow these simple steps:

Preparing for the Auction

• Inform your salesperson: Let your salesperson know you’re interested so they can keep you updated on all developments and inform you of any pre-auction offers
• Check the property’s condition: Satisfy yourself as to any building or structural matters. We recommend getting a pre-purchase building inspection from a reputable company.
• Review disclosed defects: The salesperson will disclose any known defects, which will also be included in the written Auction Conditions of Sale.
• Examine local authority issues: The vendor may provide an up-to-date LIM (Land Information Memorandum). Have your solicitor review this for any compliance issues.
• Have your solicitor review the documents: We recommend your solicitor peruse a copy of the Auction Conditions of Sale to ensure there are no contractual issues. This document will also list the chattels, the settlement date, special clauses, and any known defects. Check the chattels list carefully to avoid any surprises.
• Secure your finance: All auction purchases are unconditional. If you are the successful purchaser, you will be required to pay a 10% deposit upon signing the contract.
• Note: If you wish to alter any standard conditions (such as the settlement or deposit), this can be arranged with the salesperson prior to the auction if the vendor agrees. This is called a Side Agreement.

In compliance with the Real Estate Agents Act 2008, you will be given a guide approved by the independent Real Estate Agents Authority titled “NEW ZEALAND RESIDENTIAL PROPERTY SALE & PURCHASE AGREEMENTS GUIDE.”

Bidding

• Bidding is simple: To bid, simply let the auctioneer know by raising your hand. If the property has reached its reserve price and you have the highest bid, you become the new owner. If not, you’ve still gained valuable insight into the current market.
• Genuine bidders only: All bidders at our auctions are genuine interested buyers. We do not use “dummy bidders.”
• Understanding vendor bids: The Contract of Sale permits the auctioneer to place bids on the vendor’s behalf to move bidding toward an acceptable price. Vendor bids are always exercised at the auctioneer’s discretion and are below the reserve price. This helps buyers by getting the bidding to a more realistic level.

Good luck with your purchase.