Buying at Auction

Buying a property at auction is a transparent and equitable way to secure your dream home, provided you are thoroughly prepared. This guide explains everything you need to know about the Ray White Whangārei auction process, from conducting your pre-auction research and arranging finance, to bidding with confidence on the day.

Understanding Auctions: Auctions are seen as a fair and equitable way to buy and sell with open competition resulting in a true market value for both buyers and sellers. When buying at auction you can see the competition and bid with confidence. Remember: an auction sale is final and legally binding.

Before Auction Day

• Inspect the Property: You can inspect the property as many times as you like prior to the auction. You may wish to engage an independent specialist, builder or plumber to advise you on the condition or structural aspects of the property.
• Market Research: Ensure you understand the market and have a feel for what similar properties are selling for. Alternatively you can arrange for an independent assessment from a registered valuer as a guide.
• Finance: Finance must be organised prior to bidding as you will need to have at least a 10% deposit, which is payable at the fall of the hammer, should you make the winning bid.
• Auction Documentation & Legal Advice: Prior to the auction familiarise yourself with the conditions of sale – such as the settlement and possession date, chattels, deposit and any special conditions. We encourage you to seek legal advice and have your solicitor check the auction documentation and title of the property prior to bidding.

Buying Prior to Auction: If you are interested in a property that is being marketed through the auction process you may wish to check whether the vendor is prepared to accept offers prior to the auction. Offers made prior to auction may be conditional or unconditional and may be accepted, negotiated, or declined at the vendor’s discretion.

On Auction Day: To make a bid you simply have to make a gesture that can be plainly seen by the auctioneer. You can call out, nod your head or raise your hand to attract attention. Most auctions are conducted subject to a ‘reserve price’, which means that the owner has nominated a price below which the property may not be sold. Once the bid price exceeds the reserve, the property will then be sold to the highest bidder. The successful bidder will be required to sign a ‘Sale of Real Estate by Auction’ agreement and pay the deposit (10% of the purchase price) on the fall of the hammer.