Your essential auction preparation guide
Bidding at a property auction can be both exciting and daunting, especially if you're new to the process. To help demystify the experience and prepare you for success, we've put together a comprehensive guide covering the key steps you need to take before raising your hand.
🏦 Confirm your finances
The first step towards auction success is ensuring your financial ducks are in a row. This means securing an unconditional loan approval from your lender. You might need to provide additional documentation, such as the auction agreement (Particulars and Conditions of Sale) and any relevant earthquake repair documentation, to obtain this approval. Start this process early to avoid any last-minute hiccups.
☂️Secure insurance cover
Securing insurance cover is also a prerequisite for obtaining finance. Many buyers have had positive experiences with AA Insurance thanks to their straightforward process. You can contact them on 0800 500 23. It's advisable to explore your options and secure insurance early on. I also recommend using the Cordell sum insured calculator to help with your sum insured.
👷Evaluate the property's condition
Purchasing at auction means you accept the property as you find it, so you need to be completely satisfied with the condition of the property prior to bidding. While our vendors have supplied a building inspection report in good faith, it's highly recommended you seek your own advice for complete peace of mind. This may range from having a building professional review the report and offer advice, to obtaining your own report. You can engage an indpendent building inspector at inzpec.com.
⚖️ Legal advice
Engaging a solicitor to review all pertinent documentation, including the LIM, Title, and auction agreement, is crucial. They will identify any potential concerns and ensure you are fully informed. If you haven't already engaged a solicitor, click here to find a solicitor who specialises in residential property in Christchurch.
💰 Deposit and settlement
Ensure you're prepared to pay a 10% deposit and meet the settlement date specified in the auction agreement. If either of these things are an issue for you, please let me know as we'll likely be able to arrange a variation for you.
📝 Register to bid
Once you've covered these bases, you'll be in a strong position to participate in the auction and can now register to bid. If there's sufficient time between now and the auction date, you might want to consider making a pre-auction offer. Feel free to call me to discuss this option further.
By following these steps, you'll be well-prepared to navigate the auction process confidently. Remember, the key to a successful auction experience is preparation and understanding the process inside and out. If you have any questions or need further assistance, don't hesitate to reach for advice.
Auction day can be your moment of triumph in the property market; with the right preparation, you're setting yourself up for the best possible outcome. Happy bidding!
