Buying at auction is probably the simplest and most straightforward method of purchasing a property. The process is quick, transparent and simple. Once you've identified the property you desire, the simple steps to follow are: Preparing for the auction
Let your salesperson know that you have interest to ensure you are kept fully informed of all developments and to ensure you are contacted should a pre-auction offer be made.
Satisfy yourself as to any building or structural matters-you may wish to obtain a building report from a reputable company specialising in "pre-purchase" inspections.
Satisfying yourself as to any local authority compliance issues - the vendor may provide an up to date LIM (Land Information Memorandum).
Give this to your solicitor to check. You may wish to get your solicitor to peruse a copy of the Auction Conditions of sale (Certificate of title attached) to satisfy yourself there are no contractual issues pertaining to the sale. These Conditions of Sale will also state the chattels, settlement date and any special clauses relating to the sale.
Ensure your finance is in place as all auction purchases are unconditional. If you are the successful purchaser at the point of signing the contract you will be required to pay a sum of 10% of the purchase price to our trust account. Note: If you wish to alter any of the standard conditions (usually pertaining to settlement or deposit) this may be arranged through the sales person if the vendor is in agreement (Side Agreement).
This must be done prior to the auction. We would advise people to arrange finance a little beyond what you would like to pay - property is a long term investment and nothing is more frustrating than loosing your dream for the sake of a few thousand dollars.
Bidding There are no tricks to bidding - simply let the auctioneer know you are bidding (usually by raising a hand). If the property has reached the Reserve and you hold the highest bid you will become the joyful new owner - if it goes beyond you, you have a period of disappointment but have learnt a great deal about the current market. If you see other people bidding for any property at our Auctions, be assured that these are all genuine interested bidders/buyers - we do not have "dummy bidders". At times potential bidders and buyers may hold back and wait for others to do the bidding, wait for the auctioneer to take $1,000 bids, or for the property to be "on the market". Given this, the Contract of Sale and the Sale of Goods Act 1908 permits the auctioneer to place bids on the vendors behalf in order to move bidding towards a price level acceptable to the vendor.
Any vendor bids will only be exercised by the auctioneer at his discretion and will most certainly be below the reserve price and below a price level which the vendors would consider accepting (Therefore helping buyers to buy - not penalising them in any way.)
Always ask questions... from your agent, from your solicitor or anyone who can add value.. go along to a few Auctions and get the ‘feel’ for the process.
Want to know more visit settled.govt.nz