Few tips when you are buying a property at Auction
The number of properties being sold at auction is reaching record highs and buyers are finding that many vendors are not open to accepting offers and would rather take their property straight to auction. Auction favours the vendors and the auction experience can be overwhelming for purchasers especially if they are new to the property market.
Here are a Few things to consider:
- Watch another auction prior to bidding:
Before bidding for the property you may be interested in, go to another auction to familiarize yourself with the entire process. It can be a daunting process sometimes, so it will be always good to know what to expect. If you feel uncomfortable bidding, you can appoint someone else to bid for you.
- Do the necessary checks before the auction:
It is very important to know that when you purchase a property in New Zealand at an auction, your purchase is unconditional and on the last fall of the hammer, you accept the property as it is. It is essential to consult a lawyer prior to the auction.
- The following checks need to be done:
- Finance –preapproval is not sufficient. The bank still needs to approve the specific property, so you will need to submit all the details to them before the auction.
- Builders Report- You should get the property checked for defects by a professional, it is well worth getting the property inspected by a building professional, prior to making any investment in the property.
- LIM Report- Order a LIM report by requesting it from the local council.
Title, Auction Agreement and Conditions of Sale- These documents will be made available to you prior to the auction by the agent. Check them with a lawyer to ensure you understand everything.