Note: You are viewing this site without it's intended layout and design. This is either because your browser has ignored the stylesheet or you have an outdated web browser that doesn't support W3C Web Standards; In this case we suggest upgrading to a modern, standards–compliant web browser.

Skip to: Page content, search box, accessibility policy.

A Buyers Guide to Auctions

Q

WHAT IS A REAL ESTATE AUCTION?

A

Auction is a form of marketing a property through intensive advertising media designed to capture the maximum attention of buyers within a set time frame. The process is a means of purchasing Real Estate through public negotiations to determine the true market value of the property.

 

 

Q

SHOULD I INFORM MY SOLICITOR?

A

It is recommended that you have you solicitor check the Particulars and Conditions of Sale which wil include terms and conditions prior to Auction. Bayleys provide information packs which incude a Certificate of Title (this will show the legal description, freehold or leasehold land and the section size) and may include a LIM (Land Information Memorandum) which advises the status of the property through council. If you have any concerns about your obligations before bidding at Auction, we recommend you consult your legal advisor.

 

 

Q

WHAT PROCE DO I HAVE TO PAY TO BUY THE PROPERTY?

A

This is the price YOU are prepared to pay. Other people will perceive different amounts. Generally your price will be established by what property has sold and is currently listed around the area, and also the particular features that the home offers you.

 

 

Q

I CAN'T BUY AT AUCTION BECAUSE I HAVE TO GET FINANCE

A

That's ok. You can organize finance through your bank or Mortgage broker (Phone Bayleys Financial Services on 09 309 6020), an approved level of funding. This may be subject to a Bank's valuation and could take a few days.

 

 

Q

I WANT TO BUY IT, BUT I HAVE A HOUSE TO SELL

A

There are two answers. If you are in a sound financial position you may organize a bridging loan. Alternatively, you can request a longer settlement date, giving you time to sell and to settle your exsisting property. Your Bayleys Agent can assist you to have your property appraised to provide you with an indication of value.

 

 

Q

WHAT'S THE RESERVE?

A

The reserve price is usually set on the day of the auction of a day prior, by the Vendor. The reserve is generally established by the intendign Purchaser's feedback during the marketing campaign. Most auctions are held “subject to a reserve price“ which means that the owner has nominates a price below which the property may not be sold. once the reserve price is met, the property will be sold to the highest bidder.

 

 

Q

WHAT IF THE HOUSE DOESN'T SELL? (PASSED IN)

A

If the reserve price is not reached, the property will be passed in to the highest bidder. The highest bidder then has the first right to purchase the property immediately after the Auction at the reserve price, otherwise the property will be offered for sale to all other interested parties.

 

 

Q

HOW DO WE BID AT THE AUCTION?

A

The Auctioneer commences by referring to the terms and conditions of sales, adn then reviews the features and benefits of the subject property, followed by inviting an opening bid. If nobody bids, the Auctioneer will recommend a starting or opening price. Bid confidently on the day. While you have a figure in mind you wish to pay, the nature of auctions means it often pays to have a little in reserve in case someone else wishes to pay the same as you do.

To bid, simply attract the attention of the Auctionee by:

- Putting up your hand; or

- Calling out; or

- Nodding your head when you make eye contact with the Auctioneer.

To assist you, the Auctioneer usually nominates the incremental amount of the bid he/she is looking for.

 

 

Q

WHAT CONTRACT DO WE SIGN AND WHAT ARE THE STANDARD CONDITIONS?

A

The contract is the standard contract on display at the Auction (you will have a draft copy in advance). The usual conditions of purchase at Auction are a depost of 10% of the purchase price in cash, bank cheque or personal cheque payable to Bayleys Trust Account. The settlement date is usually 30, 60 or 90 days (unless otherwise stated), from the signing of the contract. You may wish to nominate your preterred settlement/prossession date which the agent must submit to the vendor for their approval, prior to the auction commencing.

BAYLEYS AUCTION ROOMS ARE LOCATED AT:

Ground Floor, Maritime Square, 4 Viaduct Harbour Avenue, Auckland

Auctions are conducted very Wednesday from 2:00pm.