Buying at Auction

Buying at auction in Wānaka

Be ready to buy before you bid. At auction, your property checks, legal advice and finance arrangements need to be completed in advance. A successful bid commits you to the purchase on the agreed terms, so auction day should be the final decision rather than the start of your research.

Register your interest in the property early

Tell the listing salesperson that you are interested and ask for the auction documents. Confirm the advertised date, time, venue or online arrangements and whether a pre-auction offer could change the timetable. Keeping your interest known helps the salesperson contact you about relevant developments.

Ask your lawyer to review the sale agreement, auction conditions, title and available property information. Check the deposit and settlement requirements. If you need a different arrangement, discuss it with your lawyer and the salesperson well before the auction. Any variation needs the seller’s agreement; it is not something to assume after bidding.

Finish your checks and confirm the funds

• Review the LIM, title, building information and any consent, covenant or shared-access issues relevant to the property.
• Arrange your independent inspection and resolve the questions it raises before deciding to bid.
• Discuss insurance for the exact property and your intended use.
• Confirm with your lender that the property and purchase arrangements satisfy its requirements. General pre-approval is not a substitute for checking the specific home.
• Understand how and when the purchase deposit is to be paid, and how the balance will be available for settlement.

Use our buying guide for the wider checklist and Settled’s auction guidance for an independent explanation of the process.

Set your limit before the room gets busy

Work out your maximum with the full purchase and ownership costs in mind. Compare relevant sales and your alternatives, then choose the amount you are comfortable paying. If someone else will bid for you, make sure the authority, instructions and limit are clear and accepted through the required process.

If you cannot attend, ask the salesperson which bidding arrangements are available for that auction and what must be completed beforehand. Check any technology in advance and confirm how you will communicate. Watching our live auction stream is useful preparation, but it does not register you to bid.

Understand the reserve and the bidding

The seller sets a reserve price, which is not normally disclosed to bidders. Listen carefully to the auctioneer’s terms and announcements, including how bids will be accepted. Ask questions before bidding if anything is unclear. The auctioneer acts for the seller.

If you hear a vendor bid, it should be identified as such by the auctioneer. Vendor bidding has specific rules and is different from a competing buyer’s bid. Settled explains those rules and the possible steps when bidding has not reached reserve.

If you are successful

Be prepared to complete the required paperwork and pay the deposit on the agreed terms. Stay in contact with your lawyer and lender so the purchase can move towards settlement. Organise your move, insurance and access arrangements around the agreement, rather than assuming you can change the date afterwards.

If the property is passed in

A property that is passed in has not sold at auction. The seller may negotiate or choose another selling approach. Ask the salesperson what happens next and have your lawyer advise on any offer you are considering. Do not assume that auction conditions stop applying immediately after the auction ends.

Talk to us before auction day

Find properties advertised for auction, watch our auctions live, or contact Ray White Wanaka on 03 443 8912. Use the form below to tell us which property you are considering and the questions you need answered.