A Simple Guide to Buying at Auction in Papamoa

A Transparent Way to Buy Your Next Home

Buying a property can be a big step, and at Ray White Papamoa, we believe in making the process as straightforward as possible. The auction method is a quick, transparent, and easy way to secure your next home. Whether you’re interested in a beachfront apartment, a family home, or a property in a nearby suburb like Mount Maunganui, our experienced team is here to help you every step of the way. We want you to feel confident and well-informed as you navigate the Papamoa real estate market.

Here’s a breakdown of what you need to do to prepare for a successful auction.

Your Auction Checklist

1. Let the Agent Know: If you have your eye on a property, let the salesperson know. This ensures you’re kept in the loop on any developments, including if a pre-auction offer is made.
2. Do Your Due Diligence: Auction purchases are unconditional, so it’s vital you are completely satisfied with the property before auction day.
   • Get a Building Report: We highly recommend a pre-purchase building inspection from a reputable company to check for any structural or maintenance issues.
   • Check the LIM: The vendor may provide a Land Information Memorandum (LIM) for the property. This report from the local council includes important details like drainage, resource consents, and any known hazards. Have your solicitor review this for you.
   • Review the Legal Documents: The salesperson will provide you with the auction documents, including the Conditions of Sale and Certificate of Title. Take these to your solicitor to check for any contractual issues. Make sure the chattels list (items included in the sale) is exactly as you expect.
3. Get Your Finances Ready: Because all auction purchases are unconditional, your finance must be in place before you bid. It’s a good idea to have pre-approval that goes a little above your ideal price, just in case. If you’re the winning bidder, you’ll need to pay a 10% deposit immediately after the auction.
4. Understand the Process: If you need to make any changes to the standard conditions, like the settlement date, this must be agreed to by the vendor beforehand and noted in a “Side Agreement.” Your agent can help you with this. By law, we will also provide you with the New Zealand Residential Property Sale & Purchase Agreements Guide to ensure you’re fully informed.

Bidding with Confidence

On the day of the auction, the process is simple.

You can bid by raising your hand or calling out. It’s that easy. If you hold the highest bid and the reserve price is met, congratulations—the property is yours!

One thing to be aware of is “vendor bids.” A vendor bid is a bid made by the auctioneer on behalf of the seller. This is used to move bidding towards the reserve price and is always announced clearly. It’s a genuine part of the process, used to ensure the auction progresses fairly. Rest assured, we don’t use “dummy bidders.” All other bidders you see are genuine buyers just like you.

Our experienced auctioneer is there to help the process run smoothly and transparently.

Ready to Buy?

Buying at auction can be an exciting and rewarding way to secure a property. If you have any questions at all about buying a home, or the auction process, our team is happy to help.

Ready to find your next home? Fill out the form below to get in touch with our team.