19 Jun 2024Buying your first home is a journey filled with excitement and challenges, and bidding at an auction is one of the most pivotal moments. The experience can be thrilling, with a mix of competition and sometimes disappointment. However, thorough preparation is crucial.
Essential Preparations
Being fully prepared and having everything lined up is very important.
Finance Approval:
Ensure you have not just general pre-approval but specific approval for the property you intend to bid on.
Legal Review:
Have all relevant documents, including the LIM report and property title, reviewed by a solicitor. Some first-time buyers collaborate with groups, finding lawyers or conveyancers who offer free initial checks, provided they handle the final conveyancing.
Due Diligence and Insurance:
Conduct thorough due diligence and confirm insurance continuity for the property. Depending on your location, this process can vary in complexity. Some vendors provide a building report, but buyers can also commission their own.
Understanding Unconditional Bidding
The auction process demands buyers be unconditional bidders. This means as soon as you place a bid, the contract is legally binding.
Auction Day Expectations
Preparation includes familiarizing yourself with the auction environment. We recommend attending a few auctions that you won’t be bidding at before participating to get a sense of the process, terminology and pace of an auction.
Upon expressing interest in a property, you will be greeted on arrival and possibly meet the auctioneer to address any questions. It's beneficial to discuss a bidding strategy with your agent beforehand.
Auction Locations
Auctions occur across various settings, either on-site at the property or at general locations such as Harcourts auction rooms. The process involves consistent key players like the agent, management team, and auctioneer.
Strategies and Tips
Keep your agent informed of your interest to stay updated on any changes or pre-auction offers. Confident bidding can provide a psychological edge in a competitive auction environment.
Financial Considerations
Successful bids require immediate payment of a deposit. Buyers can request variation agreements, such as split deposits or adjustments to settlement dates and included chattels. These requests are common among first-time buyers who may face delays in withdrawing Kiwisaver funds.
Navigating your first home auction can be daunting, but with careful preparation and strategic planning, you can confidently place your bid and move closer to owning your dream home. Harcourts Whangarei is here to guide you through every step of this exciting process.