AUCTION PACK
CONTENTS
Loan Market: Are you confident to keep bidding?
How can we buy this property?
Pre Auction Preparation and Top 10 Tips for Auction Day
Do I need a Property Manager?
Form Examples
Purchaser Acknowledgement Form
Auction Bidding Registration form
Phone Bidding / Bidding on Behalf of form
Acknowledgement of Pre-Auction
Procedure form
HOW MUCH DOES AN EXTRA BID COST?
If the property you’re after is going to auction, it’s nice to know the difference on your repayments a higher bid will make. You’ll see from the table here, how your weekly loan repayments change with additional bids.
Use this weekly repayment guide and discover how much an increased offer will really cost.
*We are not implying these rates are available or realistic, or that credit is available or suitable. Rates are purely indicative to demonstrate how a loan repayment might change if the loan principal increases on a 30 year loan of $500,000. This is not a repayment amount and does not consider your unique circumstances or product fees.
ARE YOU CONFIDENT TO KEEP BIDDING?
When it comes to buying property there’s no such thing as too much research. Your local real estate agent can provide you with lots of useful background information on the neighbourhood and can get you up to speed on similar sales in the area. At the same time, I can help you understand how your repayments will change with each bid.
Even before you think about making an offer, it’s worth speaking with your local Loan Market adviser who can:
Work with over 20 lenders – to ensure you’re aware of your maximum borrowing capacity
Organise a pre-approval – essentially giving you the green light from a lender to spend up to a certain amount
Put you in a much better negotiating position –by ensuring you understand the costs of making another bid
So in a nutshell, by arranging your finance first, you really will be streets ahead of other buyers when the time comes to make an offer.
Dave Williams
Mortgage Adviser
022 6183799
dave.williams@loanmarket.co.nz www.loanmarket.co.nz/dave-williams
HOW CAN WE BUY THIS PROPERTY?
Here we answer the commonly asked questions about Auctions.
What is the ‘reserve price’?
The reserve price is an amount which the Vendor indicates they will not sell below. The only person who will know is the Auctioneer. The reserve is generally established by considering the intending Purchaser’s feedback and the Vendor’s expectations.
How do we bid at the Auction?
Simply attract the attention of the Auctioneer by putting up your hand, calling out or nodding your head when you catch the Auctioneer’s eye. The Auctioneer usually nominates the amount of the bid he is looking for.
Can I buy before Auction?
Yes, in most cases you can. These offers must be unconditional, like an Auction ‘bid’, to be accepted. The Vendor will either refuse or accept it. Should your offer be at an acceptable level, other interested purchasers will be notified and given the same opportunity to purchase. Should this be the case, the Auction is brought forward.
I want to buy it, but have a house to sell. What can I do?
If you are in a sound financial position it may be possible for you to organise a bridging loan. The other way is to buy on a longer settlement date, giving you time to sell and to settle your house. You may wish to take legal advice before pursuing these options.
I want to buy it, but have a house to sell. What can I do?
If you are in a sound financial position it may be possible for you to organise a bridging loan. The other way is to buy on a longer settlement date, giving you time to sell and to settle your house. You may wish to take legal advice before pursuing these options.
What price do I have to pay to buy the property?
This is the price you are prepared to pay. Other people will perceive different amounts. Generally, your price will be established by what has sold in and around the area of the property in question, and also the particular features that the home offers you.
What Agreement (contract) do we sign and what are the standard conditions?
The legally binding Agreement is the standard Agreement on display at the Auction. The usual conditions of purchase at Auction are 10% of the purchase price paid as deposit, and Settlement date is typically 30-90 days from the signing of the contract.
Your Ray White Licensee Salesperson is specially trained to assist you if you have any questions or if you require further information about Auctions.
TOP 10 TIPS FOR AUCTION DAY
ONE
Turn up early, relaxed and ready. Don’t run late finding a car park. You need to reduce your stress and at least look confident.
TWO
Know how you’re expected to pay the deposit –Online Banking.
THREE
Stay refreshed. Eat beforehand, have a drink with you. Depending on whether you attend the open home prior to the auction, or lengthy “in room” schedules and the negotiating process, you could be there for an extended period of time. You need to keep your energy levels up.
FOUR
Bid early even if you stop for a while. Your first bid is the hardest; it’s really a matter of breaking the ice. Remember with bids going up, the early ones are also cheaper!
FIVE
Have your game plan written down – where you expect to start and where your budget will stop you While the auction is going, record the bids on your planning page. This will help you clarify whether you should bid again or not.
SIX
If you’re still in budget, bid straight back against other bidders. Don’t hold the pressure with the auctioneer and everyone staring at you.
SEVEN
If you’re going to call a bid, take a deep breath beforehand. Make sure you sound confident. You can bid by nodding, waving or calling out bids.
EIGHT
Make sure you have a clear line of sight with the auctioneer. I’d suggest not sitting at the front or standing at the back. Stand to one side so you can see the auctioneer and all other bidders including those at the back of the room.
NINE
Make sure you know who has the bid when the auctioneer is knocking the property down (selling it). Again, avoid standing at the back of the room, that’s where all the buyers stand. You don’t want to find he’s actually been pointing to the person next to you when you thought you had it!
TEN
Talk to an experienced agent about bidding tips and techniques before the auction. You don’t want to miss out to another buyer because you didn’t have bidding experience or a bidding strategy.
Purchaser Acknowledgement & Consent Form
PleasecheckyourdetailsbelowandsignbeforeyousubmitanofferorbidatAuctiontopurchasethepropertyat: (property)
Purchasername(s):
Address:
Phone:
Email:
Solicitor(nameandfirm):
I/WeasPurchaser(s)oftheabovepropertyherebyacknowledgethatpriortoenteringintoandsigningthe AgreementforSaleandPurchase/Tender/AuctionAgreementthat:
I/WeweregivenacopyofanApprovedGuideissuedbytheRealEstateAgentsAuthority;and I/WefurtheracknowledgethatatthetimeweenteredintothisAgreementforSaleand Purchase/Tender/AuctionAgreementwedidsofreelyandvoluntarily,withoutanyinfluenceor duress,andweconfirmthatwewereofferedtherightoflegaladvicebeforeenteringintothesame.
OverseasInvestmentAct:I/Weunderstandthatresidentialpropertypurchasesaresubjecttothe provisionsoftheOverseasInvestmentAct2005(OIA).IfI/werequireOIAconsent,donothaveOIA consentanddonotmakeourofferconditionaluponobtainingit,wewillbeinbreachoftheOIAand understandtheconsequencesastheyarelaidoutintheOIA.
Auctions:I/weacknowledgethatI/wemustnotbidatanyAuctionunlessI/weareabletobuythe propertyonanunconditionalbasis.
EXAMPLE
AML:I/weunderstandandacknowledgethatbeforemysolicitorcanactforme/us,theymustcomplete customerduediligence(CDD)onmeundertheAnti-MoneyLaunderingandCounteringFinancingof TerrorismAct2009(AML/CFTA)andanyresultingconsequencesifthisisnotcompletedandaccepted.
Data:I/weunderstandandacknowledgewhatmy/ourpersonaldetailsmaybeusedfortoperform businessactivitiesandfunctions,fulfillingrequests,andprovideadditionalservicesbythirdparties.I/we givemy/ourconsentformy/ourcontactdetailstobeusedinaccordancetotheRayWhitePrivacyPolicy. https://raywhite.co.nz/privacy-policy.
I/Wefurtheracknowledgethatthefollowingappendedmatters(ifany)werespecificallydisclosedtous priortoenteringintoandsigningtheAgreementforSaleandPurchase/Tender/AuctionAgreement.On additionalappendixfurtherdisclousrespage.
Signed:
Name:
Date: Signed: Name: Date:
Ifyouareintendingtopurchasethepropertyastrusteesofatrust,alltrusteesmustsignthisform.Ifacompanyis purchasingtheproperty,bysigningthisformyouacknowledgethatyouaredulyauthorisedtosignthisformonthe company’sbehalf.
Acknowledgement of Pre-Auction Procedure
PROPERTY ADDRESS:
SALESPERSON
I/We acknowledge the following in making a pre-auction offer on the above mentioned property that:
I/We have been recommended to obtain independent legal/technical advice before signing the Agreement For Sale And Purchase Of Real Estate. (The Offer)
On receipt of the offer the vendor(s) may do one of the following:
If the offer is at an acceptable level at which the owner of the property would sell, then the offer may be accepted by the Vendor. The property will then be withdrawn from the market and sold to myself.
Bring the auction brought forward to the date earlier than is presently advertised - and that it will be a ‘disclosed price’ auction with the opening bid being the same as my offer
If the auction is brought forward
The seller cannot withdraw their property from the brought forward auction once they have signed a Pre-auction offer as they would be in default of clause 23.
EXAMPLE
The Pre-Auction offer once signed by the Purchaser is legally binding upon terms as set down by clause 23 and the Pre Auction Procedure form.
That if the auction is brought forward, all other interested parties will be contacted and informed of the new auction time, date and location and will be informed that the auction will be a disclosed reserve auction and that the opening bid (my offer) will be disclosed at the commencement of the auction.
Unless there is a higher bid, my offer will be accepted by the owner and I will be the purchaser of the property. If there is further bidding at the auction I will also be able to bid and, that the highest bidder at the conclusion of the auction shall be the purchaser of the property – If I am unsuccessful at the auction the deposit will be repaid to me in full.
Reject the offer and continue with the marketing campaign.
23.0 Pre-Auction Clause
23.1 The parties acknowledge and agree that this Agreement is unconditional in all respects with the exception of this Clause 23.
23.2 The parties also acknowledge that the date and time of the Auction will be brought forward to a time and date that has a minimum of 48 hours (which included at least (1) full working day from the date this agreement is signed by all parties. All interested parties will be notified of the new time and date of the Auction and the fact that a Pre-Auction offer has been received.
23.3 The parties acknowledge that the price in this Agreement will remain confidential until the Auction commences and will become the opening bid and reserve price of the Auction.
23.4 If during the Auction a bid is received that is unconditional and which is higher than the price in this agreement, this Agreement will immediately be at an end and the property will be sold to the person that holds the highest bid at the conclusion of the Auction.
23.5 If during the Auction, no higher unconditional bids are received by the close of the Auction, this Agreement will immediately become unconditional in all respects.
Purchaser Name/s
Signature
Signature
Signature
EXAMPLE
Date:
Date:
Date:
I/We, the Vendor/s, confirm that the pre-auction offer is at an acceptable level to bring the auctionforwardto:
Vendor Name/s
Signature
Signature
Signature
Page 2
Date:
Date:
Date:
Auction Bidding Registration Form
I refer to the forthcoming sale by Auction by Realty Focus Limited Licensed (REAA 2008) trading as Ray White Papamoa & Mount Maunganui of the property at:
PROPERTY ADDRESS
On the
I/we wish to register as a potential bidder at the above mentioned property auction.
Name/s
Address:
Phone:
Email:
Solicitor Name:
Mobile:
Solicitor Firm:
I/We acknowledge that the auction purchase is a cash unconditional sale in all respects. I/We acknowledge that I/we have been supplied and had reasonable time to consider a copy of the REAA Property Sale and Purchase Agreement Guide and the subject Contract of Sale. As the successful purchaser/s, a deposit being 10% of the purchase price is payable to Realty Focus Trust Account on the fall of the hammer by cheque or electronic bank transfer no later than the next working day.
Settlement and possession date is
I/We further acknowledge that at the time we entered into this document I/we did so freely and voluntarily, without any influence or duress.
EXAMPLE
I/We confirm that I/we had a reasonable opportunity to seek legal, technical and other advice or information (including, but not limited to, the Title for the above mentioned property, the Land Information Memorandum (LIM), financial funds availability to settle the purchase, my/our position in regards to GST, a Building Inspection regarding structural integrity, weather-tightness, etc). We further acknowledge that such information and reports are to be obtained at our expense and no compensation for costs can be sought from Realty Focus Limited if we are, or are not, the successful bidder/s on the property and that we have either obtained that advice, or information, or have decided not to do so of our own accord.
I/We understand that Realty Focus Limited Licensed (REAA 2008) trading as Ray white Papamoa & Mount Maunganui has informed me/us that an In-House Complaints and Disputes Resolution Policy is available to me/us on request and further more has informed me/us that I/we may access the Real Estate Agents Authority complaints process without first using the in-house procedures; and that any use of the in-house procedures does not preclude my/our making a complaint to the authority.
Full Name/s
Signature
Phone bidding / Bidding on behalf of
Authority to bid on behalf of:
NAME/S:
AUCTION OF:
ON THE
I/we wish to authorise to bid on my/our behalf to the figure of $ OR as disclosed to you by telephone during the auction itself.
I/We also enclose confirmation from our Solicitor/Bank Manager that sufficient funds are available for the 10% deposit, payable upon the fall of the hammer, should I/we be the successful purchaser/s of the above property for auction.
I/We also give an unequivocal undertaking that if I/we are the successful bidders then I/we will complete the contract according to the terms and conditions of sale.
I/We also authorise in my/our absence the auctioneer to sign the memorandum recording sale as purchaser.
EXAMPLE
All parties acknowledge that before signing this agreement for sale and purchase of a residential property the Agent has given me a copy of the approved 'New Zealand Residential Property Sale and Purchase Agreement Guide' issued by the Real Estate Agents' Authority or I/we have been provided with an electronic copy of, or link to this file as found on the REAA website to access the approved guide online and have had time to read and understand the guide.
I/We also confirm that I/we have been informed that I/we may access the Real Estate Agents' Authority's complaint process without first using the in-house procedures, and that any use of the in-house procedures does not preclude my/our making a complaint to the Authority (ref: www.reaa.govt.nz).
Full Name/s
Signature Signature Signature
Date:
Date: Date:
MY AUCTION NOTES
07 542 0501 rwpapamoa.co.nz
1/9 Domain Road, Papamoa
07 575 2030 rwmtmaunganui.co.nz
260 Maunganui Road, Mt Maunganui