How to Put Your Best Foot Forward at an Auction

Auction activity has slowly been increasing across New Zealand

If you find yourself heading along to an auction, it pays to be prepared, as you’ll most likely have competition!

We share our tips on how you can put your best foot forward and have the biggest chance of securing the property you want.

Market Research

Before you even get to auction stage, we suggest that you keep an eye on the property market to gain an understanding of current sale prices. Also, it’s a good idea to attend several open homes and get a feel for what you can get, for your budget. 

And when you finally find the one’, make sure you’ve done the research on the property itself. If you’re successful at auction, you don’t want to walk away with a lemon because you haven’t done your homework!

Understand how an auction works before you attend

Auctions can move fast, so it’s beneficial to know the nuts and bolts of the auction room before you head in! Do you know what happens before, during and after an auction? Are you aware of your legal obligations if you’re successful? If you’re needing a greater understanding of auctions, we suggest you speak to your real estate agent.
Also, if you’ve never been to an auction before, it’s a good idea to go along as an observer. This is a great way to get the hang of how it works and see it in action before you go to the ‘real’ one for the home you’re after!

Be prepared

Make sure you have a pre-approval in writing from the lender, before you attend the auction, so you have assurance you have access to the finances. Knowing your maximum bid is important and it gives you confidence which will help come bidding time!
Also, it’s recommended that you’ve had a building inspection completed before attending the auction. This means if you’re the winner at auction, you know what you’re walking into. In addition, you should have a solicitor check the sale and purchase agreement too. You need to be aware of the conditions of the sale before you bid.

Stay cool and in control

Admittedly, much harder said than done in an auction setting! It’s challenging to not let emotions take over in an auction, especially if you’re bidding on your ‘dream’ home. However, remember all the time, effort and work you’ve put in to get to this point. You know your maximum limit so if bidding exceeds this or you’re starting to feel stretched, walk away. Rather than letting your emotional attachments control your bidding, only bid to an amount you know you can afford.  
It’s a good idea to have consulted a mortgage broker in the ‘preparation’ stage. They can help calculate your borrowing power and run scenarios for you so you understand what your repayments would be. They can also explain any impact of rising interest rates so you’re aware of that too.

Bid Confidently

If you’ve followed all the previous steps, then you can bid confidently at the auction. Open the bidding at a respectable price to show others in the room you mean business! And remember, for those of you that know your emotions will get the better of you, consider getting the real estate agent or someone else to bid on your behalf, with your instructions to purchase.
And good luck!