What to Expect from the House Auction Process

Are you considering attending house auctions in Hamilton or other New Zealand cities? Auctions are a great way to avoid lengthy and uncertain buying procedures and bag yourself a bargain. However, it’s important to consider several factors to prepare for the house auction process. This article guides you on what to expect at a house auction so you can be fully prepared to purchase your dream property.

Before auction

We recommend doing a few things before participating in the house auction process. Firstly, do some research by viewing the property and checking the average area cost. You also should arrange your finances and documentation to be ready for the auction of your favourable property. Make your interest known and ask to be kept in the loop to receive all the information you need to enter into the house auction process.

Joining an auction

At the beginning of an auction, you may need to register your interest with an agent and then you will get a number to raise for bidding. In our modern era, you can complete the house auction process online. In this scenario, you may register online or download certain software to participate in the house auction process. You can also bring a family member or listing agent to help you through the bidding process.

What is a vendor bid?

A vendor bid is a bid an owner can make on their home during an auction. When raised, the auctioneer must clarify that it is a vendor bid. Vendor bids are only allowed when the reserve price still needs to be met.

Pre-bidding

It is essential that before you enter a house auction process, you have done your research on the property. The seller will set a minimum price that the auctioneer will not disclose. To begin the house auction process, the auctioneer reads the terms and conditions; they will also raise any issues with the property. They will then let everyone know what sellers are participating in the process, including vendor and telephone bidders.

Finally, the bidding will commence!

The main rule of bidding is to make a bid higher than the last to achieve the highest bid without competition. The auctioneer will determine how much you can increase your bid. The auctioneer can reject your bid if they believe you have not advanced the bidding by enough. If you are bidding via phone, an agent will participate on your behalf and let you know what is happening. The trouble with online bidding is the risk of delay, so it’s always better to attend in person if you can.

Suppose the bidding does not meet the reserve price. In that case, the property won’t sell at auction, and the auctioneer will privately negotiate with the highest bidder, or the seller will lower their minimum price. Once the bidding goes over the minimum reserve price, then the highest bidder will win. If you win, you typically sign a sale and purchase agreement and pay the deposit. In some scenarios, the auctioneer can sign this document if indicated by the terms and conditions.

Purchase your home at auction with Sue Hall

House auctions and properties under the hammer mean you get a fair go to secure your new home. If you’re interested in Hamilton real estate and property auctions, Sue Hall can help.