Posts Tagged ‘Auction’

For Sale By Auction – Before The Auction

So the house is ‘for sale by Auction’ - this puts a lot of new home buyers off – but get to know the process and you will be able to make good decisions about buying at auction. This article is here to help you with thinking about buying a house at auction and what you need to do before you go to the auction to bid.

Buying at Auction

Houses for sale by auction are rarely advertised with a price – this is often the reason for the Auction – the price of the property is hard to determine – and the seller of the property has decided that there will be enough unconditional interest in the property to make an auction a good option for selling & determining a market value. So you need to work out the price for yourself – you are ‘the market’ after all!




Sometimes a vendor is only after an unconditional sale, quickly, and an auction is seen as a way to achieve this – so don’t assume that if a house is for sale by auction that there is going to be lots of people interested or that you are going to have to pay a premium – you may be the only one who turns up on the day...

The Marketing Campaign - Before the Auction

A house for sale by auction is usually marketed over 2 – 4 weeks with the auction date included on all the marketing information for the property. If you want to buy a house for sale by auction you (usually) need to bid. You do not have to be at the auction in person, you can organise to bid over the phone, or you can send someone to bid on your behalf.

Sometimes, in the fine print, a vendor is open to offers before an auction, be aware of this and make sure you register your interest in the property with the real estate agent so that if any pre-auction offers come in – you get a chance to put in your offer too. A good real estate agent will never turn down to opportunity to create a competitive offer situation!

Buying at Auction is an Unconditional Offer

When you buy at auction you are buying unconditionally. This means that if you are the highest bidder, and the reserve is met, you have effectively made a cash offer that has been accepted and this is legally binding. If you are unable to make a cash offer, don’t give up, if a property does not sell at auction, conditional offers will usually then be considered.

Therefore, if you are planning on buying at auction, you need to make sure that all your conditions have been satisfied before you bid. Get your property valuation, building inspection, and your LIM, confirm your finance, get your lawyer to check the title and make sure you have done your personal inspections and research into the property.

Get Familiar With the Auction Process

Attend a couple of auctions as a spectator before your auction - find out who the auctioneer is going to be at your auction and check out their stlye - some are a lot more understandable then others, and most have different techniques for handling vendor bids.

Let's Do it! Buying at Auction

By the time you are standing (or sitting) in front of that auctioneer you have probably already spent a fair bit of money on the house. It is very important to not let that affect your bidding.

You need to set a budget and stick to it! Easier said then done when you already have an emotional and financial investment in the house. Perhaps someone bidding on your behalf is a better way to go...

Buying at Auction - Before the Auction
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The Propertytoolbox Home Buyers Guide

So now you are ready to bid – good luck! The full run down of Auction is in our House Buying Guide article ‘For Sale By Auction’.




A Property Title Search – What Is It?

A property title search or title check is a search and check done by your property lawyer or conveyancer of the records held by Land Information NZ (LINZ) regarding a house or property.

What Can I Find Out From a Property Title Search?

A title check establishes:
  • Who the owner of the property is.
  • Type of title i.e. freehold (fee simple), cross lease, leasehold, company share or unit title.
  • Any covenants or right of ways.
  • Any easements.
  • Boundaries.
  • Any other interests in the property (e.g. mortgages)

What Do the Results of the Property Title Search All Mean?

Freehold? Cross lease? Easement? Confusing! For explanations of all of these terms – head to our definitions section.

A lot of information can be found in a title check – your lawyer or conveyancer is an expert at working out exactly what is going on and can highlight any potential issues.

A title check can bring some information to light that can really affect the price you are prepared to pay – perhaps the title type is not what you expected, or the boundaries do not correspond with the fences, or easements are a problem.

Implications of covenants or right of ways may affect your enjoyment of the house, or put a stop to plans you have for the house (extensions or additions). Therefore it is a really good idea to get a title check done before you make an offer.

Making an Unconditional Offer?

If you are buying through auction or tender getting a title check done before making you offer is especially important. Commonly, the normal vendor warranties (promises) about features of the property and the purchaser’s right to requisition (raise objections to) the title are deleted from the sale and purchase agreement in the case of auction or tender.

This means you need to get your lawyer to check the title and any other reports on the property before the auction or the lodgement of a tender as you have forgone your legal right to raise objections by signing an agreement with the vendor warrantee clause crossed out.

Property Title Search

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The Propertytoolbox Home Buyers Guide

The title is one of a few things your lawyer should check for you before you make an offer. This information is all part of the Propertytoolbox home buying guide.

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I’ve Got My LIM Report – Now What?

Your LIM Report has arrived from your local council for the house you are looking to buy – now what! There is a lot of information in a LIM Report and knowing what to look for, knowing what it serious and what is minor, and wondering what is missing can make assessing the LIM Report a daunting task – you went to the time and effort of getting it – make the most of it.

Getting a LIM Report

You may have ordered your LIM as part of working through your conditions on an agreed sale and purchase agreement, or you may not have agreed the sale yet - the house may be for sale by auction or tender and you feel that a LIM is important to have before deciding on a price for the house – whatever the reason - the LIM Report needs to be gone over carefully.

Looking Over Your LIM Report

Read through the summary pages – potential issues are likely to be obvious here. Then dive into the main contents of the LIM. Look for outstanding financial obligations, resource consents, building permits, and related plans. Check that all issued consents have been signed off. For building work from 1992 onwards, check that a code of compliance certificate has been issued for works completed.




Take your personal knowledge of the property, its buildings, retaining walls, land use and the surrounding properties and the area and consider that against the information contained in the LIM. You should ask questions of the seller and the council if you find differences.

Getting Expert Help With the LIM Report Analysis

It is always a good idea to look over the LIM report with your lawyer when you receive it. Your lawyer’s experience and expertise regarding LIMs, combined with your knowledge of the property and your thoughts on what you intend to do with the property, will ensure that the LIM is understood and the full implications of any aspects of the LIM are realised.

Get additional expert help from a valuer or builder (the councils ‘on duty’ building officer is a great free resource), or any other relevant professional if you feel you need it to get the full picture.

What To Do With the LIM Report Results

Consider what impact the findings of the LIM report will have on your enjoyment of the property and the value of the property before you make your decision on whether this is the house for you.

Your LIM Report - What You Need to Know
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The Propertytoolbox House Buyers Guide

For all you need to know about LIM’s check out the Propertytoolbox information on LIMs. For everything else there is the Propertytoolbox Home Buyers Guide.