Buying at Auction

Buying at auction can provide a clear and transparent way to purchase property, but preparation is essential. Auction purchases are normally unconditional and the successful bidder is expected to sign the agreement and pay the required deposit immediately after the auction.

Before you decide to bid

Ask the listing salesperson for the auction agreement, property documents and details of how the auction will be conducted. Tell the salesperson you are interested so you can be informed of material updates and any change to the campaign.

• Inspect the property and complete the due diligence you require.
• Ask your lawyer or conveyancer to review the title, auction agreement and relevant documents.
• Consider a building inspection, LIM review and specialist advice appropriate to the property.
• Confirm finance before auction day. A successful bid cannot normally be made subject to finance.
• Confirm the deposit amount, settlement date and any proposed changes to the auction terms before bidding.
• Register to bid and bring the identification required by the agency.

Changes to the auction conditions

If you want to request a different deposit, settlement date or another change, raise it with the salesperson well before the auction. Any variation requires the seller’s agreement and should be recorded in writing before bidding begins.

How bidding works

The auctioneer will explain the key conditions and invite bids. Bid clearly so the auctioneer can identify you. The seller normally sets a confidential reserve price. Once bidding reaches the reserve and the property is declared on the market, the highest bidder will purchase the property when the auctioneer completes the sale.

The auction conditions may allow vendor bids below the reserve. The auctioneer must identify a vendor bid when it is made. Ask the salesperson or auctioneer before bidding if you need the process explained.

If the property is passed in

If the reserve is not reached, the property may be passed in. The highest bidder may be given the first opportunity to negotiate, but no sale exists unless the buyer and seller reach and sign an agreement.

If you are the successful bidder

You will be asked to sign the sale and purchase agreement and pay the deposit as soon as the auction is over. Your lawyer and lender should already understand the agreed settlement arrangements.

Phone and online bidding

Some auctions allow approved phone or online bidding. Contact the listing salesperson early because registration, identification and signed authority may be required before auction day.

Independent information

For independent consumer guidance, read Buying by auction on settled.govt.nz. Always obtain legal and other professional advice appropriate to the property and your circumstances.

For current Ray White Bream Bay auctions, view our auction listings or call 09 433 0334.