An auction lets buyers compete openly for a property on a set day. If you are the successful bidder, you are committing to an unconditional purchase. The best preparation happens before you raise your hand.
Tell the listing salesperson you are interested and ask to be kept informed about changes to the auction or any early offer. Have your lawyer review the auction documents, title, chattels, deposit and settlement arrangements. Arrange the building and other specialist checks you need, and confirm finance and insurance for this particular property.
In Christchurch, ask about earthquake claims, repairs and supporting records as part of your property research. A supplied report may help, but discuss with your own adviser whether it answers your questions and whether you can rely on it.
Work out your budget with your lender before the auction, including purchase costs and any work you expect to undertake. Decide your maximum bid and stick to it. An auction is not the place to discover that finance remains conditional or insurance is unavailable.
Your lawyer can help you understand what you are agreeing to and raise any requested change through the salesperson before auction day. A different settlement date or deposit arrangement needs the seller’s agreement in advance. Check the deposit stated in the documents rather than assuming every auction requires the same amount.
Read the Settled offer and agreement guidance alongside the property documents. If you have not attended an auction, watching one first can help you become familiar with the pace and procedure.
Make your bids clear and follow the auctioneer’s instructions. The reserve is the seller’s minimum acceptable price and is confidential. A clearly announced vendor bid may be made only while bidding remains below reserve and where a reserve exists. It is different from a genuine buyer’s bid.
If the property sells to you under the hammer, follow the auction terms for signing and paying the deposit. If it passes in, ask the salesperson what discussions may follow. Do not assume it has sold or that all later negotiations use the same terms.
Arrange remote participation beforehand. Confirm registration, identification, how your instructions will be communicated and a backup contact if the connection fails. A livestream can lag behind the auction room, so use the agreed bidding process rather than relying on the video alone.
Contact the property’s listing salesperson or call Ray White Cashmere on 03 337 5024. You can also browse upcoming auctions, watch our auctions or read the independent Settled auction guide.