fbpx

6 Tips for Bidding at Auction

Auctions can be a little bit overwhelming.  They’re meant to be.  It’s why they result in higher prices for the Vendors.  To help ease the stress, here are 6 quick tips you should consider before going to bid on a property you love.

6 Tips for Bidding at Auction

Quick auction tips

  1. Go to other auctions first so you know how they work.
  2. Have a firm idea of your maximum bid.  Auctions are meant to get you excited and in the moment.  Bidding without a price ceiling can lead to severe buyer’s regret!
  3. If you need to change the settlement date, let the Real Estate Agent know well in advance.  This is often possible but needs to be signed off by the Vendors.
  4. Much like the settlement date, if you don’t have the required deposit – usually 10% of the purchase price – let the Agent know well in advance (at least 3 days).  This will need to be approved by the Vendors.
  5. If you have any questions beforehand, don’t hesitate to talk to the Agents at the auction.  They want bidders so they will be happy to help you through the process.
  6. Always keep in mind that when the hammer falls, and you are the last bidder, you have unconditionally bought a house (assuming the bidding has met Reserve).  The property will need to be signed off by the bank before the auction.  This means sending us a copy of the auction documents 3 working days before the auctions.  The bank will have questions about any disclosures or unusual clauses in the auctions documents.
Subscribe to our Newsletter to receive all our latest articles

Latest Posts

Preparing For Your Mortgage - Documentation

Getting a mortgage can be stressful and a lot of that stress is caused by waiting for the bank to make their offer. You can significantly reduce wait time by…

Read More

Revolving Credit, Floating Account, Mortgage

Most homeowners are familiar with fixed-term mortgages.  Over 80% of NZ mortgages are on some sort of fixed-term; the majority are currently for 1 to 2 years.  But it’s easy…

Read More

Purchasing your first home can be confusing.  The key to being ready to buy is to be organised.  Here are 3 things that first home buyers can do today to…

Read More

Interest Only

In recent years, the Reserve Bank has been working on reducing the amount of Interest Only mortgages in New Zealand. In the article below, we look at how it affects…

Read More