Buying at Auction Guide

This Guide does not form part of the Particulars and Conditions of the Auction Agreement

Pre Auction

Ask for a copy of the Real Estate Agents Authority booklet on Agreements supplied by your agent if they have not already supplied you with one. While Peacockes Real Estate takes every precaution to look after your interests, you should read it to be aware of your rights.

Have Title and Land Information matters approved before bidding at an Auction.

Not a New Zealand Citizen or Resident? Then ensure that you have OIO (Overseas Investment Office) written clearance prior to bidding at the Auction you must be able to provide evidence of such approval to the Auctioneer or to a Peacockes consultant. The Auctioneer may not otherwise be able to accept bids from you, or from anyone else on your behalf.

A 10% deposit is normal

And usually required immediately if you are the successful bidder. Bank transfer may be acceptable (The Auctioneer will have the form)

FInance

You will need to have finance pre-arranged to coincide with the Possession Date set down in the Particulars and Conditions. If the Possession Date as set down is not suitable then do discuss it with your Peacockes Real Estate consultant who may be able to arrange a different date for you but this must be done prior to the Auction getting underway.

Register your interest

Arrange with your Peacockes Real Estate consultant. Whilst this is not strictly necessary prior to the auction day to be able to bid, it does protect your interest and ensure that you are kept informed of all pre-auction developments. Unregistered parties may well miss out. It ensures that if any other buyer makes an offer before the auction which the owner may be disposed to accept, then we are able to contact you to give you the chance to take part by also making an offer. Registrations should be in writing and on the Form supplied by your Peacockes Real Estate consultant. (As the Seller always reserves the right to accept an unconditional offer prior to auction – it pays to be registered and thus be kept in the loop.)

At The Auction:

If you consider yourself a potential buyer (bidder) then arrive at least 15-20 minutes early and if the auction is to be held at the property then have another good look around as this time is usually quiet and can help to confirm that this is the property for you. Make yourself known to the Auctioneer.

The Auctioneer will call everyone to where the auction will take place and will summarise the Particulars and Conditions of Sale and give a description of the Property. He will then call for bids. If you intend to bid, it pays to tell your Peacockes Real Estate consultant as they are there to help.

Bidding on the day is really very straight forward.

Once you have made your interest known to the Auctioneer he will look to you for any further bids. A nod or raising your hand will then generally be sufficient to place your bid. If you are unsure, don’t hesitate to ask. The Auctioneer will ask for confirmation only if he is unsure that you are actually bidding. If you think the Auctioneer has missed, or mistaken, your bid then call out or tell your Peacockes Real Estate consultant who will in turn seek clarification from the Auctioneer, this is not unusual as the Auctioneer does not want any misunderstandings. Start bidding at well below your limit, if possible, this allows you to get used to the activity and for the Auctioneer to be watching for your bids. If the bidding does not reach the reserve then the highest bidder may have the first opportunity to reach an agreement with the Seller, therefore, if the bidding stops below your limit and you are not the bidder then it would certainly pay to place another bid to protect your own interests. If you are unsure if it is your bid that is the highest then do not be too shy to ask for clarification but this must be done before the bidding closes.

Should there be no bids at all from other parties then make sure that you do still put in a bid as this then allows the Auctioneer to try to reach an agreement between you and the Seller before he hands the property back to the agent to contact all other parties that have shown an interest which could result in a multi offer situation with all conditional buyers and you may not get any other opportunity to negotiate.

Vendor (Seller) Bidding

This is when the Auctioneer puts in bids on behalf of the Seller and it is the most misunderstood concept. The Auctioneer will inform the gallery each time such a bid is made. It is however the standard and accepted way for the Auctioneer to indicate that the bidding has not yet reached the reserve, he is thus inviting more bids. The property cannot be sold under the hammer unless it reaches the reserve set by the Seller. The Auctioneer cannot bid on behalf of the Seller once the reserve is reached. Should a Seller bid after you then your bid, although noted, was put aside as it has not reached the reserve and so cannot trigger a sale. You will need to bid again if you wish to purchase the property.

Having someone else do your bidding for you

Anyone that you choose and is also acceptable to the Auctioneer, at his discretion, may bid at auction. Your bidder may require written advice as to how high you wish them to go on your behalf. Other bidders could well be your solicitor, real estate consultant, a friend, or a family member. Discuss this arrangement with the Auctioneer or your Peacockes Real Estate consultant in plenty of time before the auction. The Auctioneer must know that your bidder is bidding on your behalf or the Auctioneer will hold your bidder personally responsible for the purchase if your bidding is successful.

Bidding on behalf

It is important to remember that the actual bidder will be held personally responsible to purchase the property unless prior arrangements have been notified and accepted in writing by the Auctioneer.

All about Telephone Bids

With the permission of the Seller and with prior written notification on the Auctioneer’s form bidding may be placed by telephone. You will need to allow plenty of time to arrange this prior to the auction. Access to email and a photocopier would make the job easier (if not essential) for the paperwork involved. If you become the successful buyer at the auction then the Auctioneer will sign the agreement in your absence on your behalf.

Nominee Clauses

When bidding on behalf of a nominee then the bidder will be held personally responsible for the performance of the nominee under the Particulars and Conditions.

Where The Purchaser is a Trust

Your Peacockes Real Estate consultant can supply a form for all the trustees to sign allowing one party to bind them all and be their bidder. Your solicitor may be able to help also. Please allow plenty of time prior to the auction date to make these arrangements.

Chattels

These are mentioned in the Particulars and Conditions of Sale. Please check to ensure they tie in with exactly what you believe is being sold with the property.

GST

This will also be mentioned in the Particulars and Conditions of Sale and you should check that this tallies with what you believe. Please note that on second hand residential homes there is normally no GST to pay.

Particulars and Conditions of Sale (The Auction Agreement)

This is the form that you undertake to sign if you are the successful bidder on the day. It simply spells out the conditions under which the property is bought and sold. You have no power to negotiate once you have bought the property, by bidding you indicate that you entirely accept the Particulars and Conditions. If you are the successful bidder the Seller is bound to sell to you as per the Particulars and Conditions. Once again, any variation to the terms needs to be in writing and agreed to in advance of the auction. Failure to sign the Auction Agreement, after you have won the property under the bidding, does not relieve you of your obligation, as the Auctioneer may then be bound to sign it on your behalf.

The Particulars & Conditions are available prior to the auction. If you have any doubts as to the wording of clauses, then you should consult your Peacockes Real Estate consultant or your solicitor. Please note that if you buy prior to the Auction then the same conditions will apply. The Seller has the right, although it is not often done, to modify the Particulars and Conditions right up to the time of auction, however, if they elect so to do the Auctioneer will read out the modification prior to the auction getting underway.

Extra Assistance Available

At Peacockes Real Estate our Auctioneers and consultants are all very experienced and trained to assist you with any further help you may require either pre-auction or on the day. The Auctioneer carries with him a range of different forms in case these are required prior to bidding, however, do not rely on the Seller being available on the auction day to approve any variations that you are seeking to the Particulars and Conditions as Peacockes Real Estate do not have any control over the whereabouts of our sellers. From approximately one hour prior to any Peacockes Real Estate auction you will normally find an experienced Peacockes Real Estate representative at the auction venue who is able to handle last minute enquiry, however, we caution about relying solely on this if the purchase of the property is important to you.

Important Note:

Whilst we have taken care to see that the information given herein is as accurate as possible, all information or opinions supplied by Peacockes Real Estate are given without responsibility for your use only and as such will not lessen or contribute to the Particulars and Conditions pertaining to any particular auction that you may attend. We advise that all matters of a legal nature that you are not familiar with should be referred to your solicitor before bidding at any auction.