Buying at Auction in Nelson and Tasman

Buying at auction in Nelson and Tasman

If a property is being sold by auction, prepare before auction day. Read the auction documents and sale and purchase agreement with your lawyer. Check the title and any supplied property information, arrange any inspections or other due diligence that matter to you, and confirm with your lender and insurer that you understand your position. Ask the salesperson how registration, bidding and the auction terms work for this property.

Set a maximum price with your financial adviser or household before bidding. Include any costs and conditions that matter to you. An auction may move quickly; do not bid until you understand what you are agreeing to. If you are successful, the agreement will generally be unconditional under the auction terms. The property’s documents and agreement govern the transaction, so get legal advice before bidding if you are unsure.

What happens at an auction?

At the auction, the auctioneer explains the process and calls for bids. The vendor sets a confidential reserve. If the reserve is reached and you are the highest bidder, you may be declared the successful buyer. If the reserve is not reached, the property may be passed in; the vendor may then consider what happens next. Ask the salesperson to explain the process and any vendor bids before the auction begins.

Can an offer be made before auction day?

A vendor may consider an offer before auction day. If a pre-auction offer is accepted, the auction may be brought forward and the offer handled through the auction process. Ask the salesperson how other interested buyers will be informed and speak with your lawyer before making an offer.

Get advice for the property

Every property and auction agreement can differ. Read the documents for the property you are considering and obtain advice from your lawyer, lender, insurer and other relevant specialists. Ray White Richmond can provide the available property information and explain the auction arrangements for its current listings.

For current auction listings, use the Upcoming Auctions page. This guide is general information; check the property-specific terms and the Real Estate Authority’s auction guidance before acting.