Auctions have become far and beyond the most favourable way of selling property in Queenstown. We truly believe it's the best way to achieve outstanding results in the Queenstown market and we're proud to consistently deliver for our clients through this method.
We have a full service in-house auction team with several experienced auctioneers who have called far in excess of 1,000 auctions between them. We believe our auctioneers are the very best in the Queenstown region: they are passionate, enthusiastic and truly committed to the auction process.
These are just some of the benefits of selling at auction:
The auction process can seem daunting, but there are many advantages to purchasing at auction. The main benefit is that auctions allow the true market price for the property to be established and it is you - the buyer - who decides how much a property is worth. It's a proven system of successful buying.
These are some other benefits to buying at auction:
Our consultants and auctioneers are hugely experienced and we guarantee that they will guide you through the process with information and advice. Our consultants are committed to achieving great results for our buyers and we're always on hand to make sure you're at ease throughout the entire process.
1. Do I have to be in a cash position to bid?
The straight answer is yes!
To bid at an auction, you need to be bidding in a cash unconditional position.
A 10% deposit only is required on the day of the auction; the balance is due on the possession date noted in the Particulars and Conditions of Auction.
However, as explained below, you may talk to your agent or auctioneer about extending the possession date, giving you longer to arrange finances.
Also, with an auction you may have a lead – up period of up to four weeks which should also allow you to get in to a cashed up position.
2. How do I work out a price?
The auction system allows you, the market, to firstly appreciate the house and then determine the price. We find as marketers, that some people literally become experts in a particular price range and they are able to indicate pretty well exactly what a property is worth. They do this by drawing on the experience of the properties they have looked at in that particular price range.
3. What about selling my house?
One of the benefits of buying at auction is the fact that if the property does reach auction you may with the prior permission of the vendors, be able to arrange an extended settlement date. This could give you the necessary time to get your own property sold. The fact you own a home is not detrimental to your buying at auction. Talk to your sales consultant about whether they have someone “waiting” for a home like yours as an early sale may be closer than you think. Its worth remembering other buyers could be in a similar position to you, and if you get a cash offer on your home, you are in an extremely strong position to either buy the auction property before auction or on the day of. If you believe your home is “saleable” you may also consider talking to the auctioneer via your sales consultant about extending the possession date on the auction property, thus giving you extra time to get your home sold.
4. How do I borrow money when I don’t know the price?
Most lending institutions are now conversant with the modern day auction and once you work out the price you are prepared to pay, when you discuss this with the lending institutions, you will find they believe it to be quite acceptable to agree to lend you the money up to a certain “bidding price”. You will then know how high you can bid at auction however our advice is to arrange finance for more than you intend to bid – its always good to have some “fighting money” should you need it.
5. Can I have someone else bid for me?
Of course! Anyone can bid for you on auction day.
They may require written advice as to how high you wish them to go up to. Bidders for you could be your lawyer, a real estate sales consultant, family member, friend or valuer. With the prior written permission of the seller you may also bid by telephone.
6. What are the normal conditions I would bid and buy under?
If you intend to be a bidder your interest should be registered with your sales consultant.
Your consultant can then provide you with the sellers Particulars and Conditions of Auction.
Normally, 10% of the successful purchase price is required to be paid on auction day if you are the successful bidder.
It is considered if you bid at an Auction that you have bid unconditionally and for cash ie if your bid is successful you have bought the property. There is nothing to be wary of provided you have done your homework and have sought the correct advice along the way.
Possession date is as per the Particulars and Conditions of Auction. Some owners will consider variations to these terms. Any variations are to be requested and recorded on an “Aside Agreement” prior to auction day, to allow potential buyers the opportunity to bid on the day.
Chattels are normally recorded on the Particulars and Conditions of Auction.
GST will be mentioned in the Particulars and Conditions of Auction and you should check to see if this tallies with what you believe. Note that on residential sales there is normally no GST payable as the properties are sold “Including GST if any”.
7. Can the auctioneer take bids on behalf of the seller?
Yes. Under the Particulars and Conditions of Auction the seller specifies a confidential “reserve price” whereby the Auctioneer has the right to take bids on behalf of the seller. These bids will be notified by the auctioneer as “vendor” or “seller” bids or “the bid is with me”. The auctioneer will not take seller bids after the reserve has been met.
8. How do I know when the property will be sold?
Should the property meet the seller’s reserve the auctioneer will notify that “the property is now on the market”. At this point the property will be “knocked down” and sold to the highest bidder.
9. What if the property does not sell on Auction day?
The auctioneer will pass the property in to the highest bidder who has the first right to meet the seller’s expectations (reserve). It is important to gain this first exclusive right (for a limited period) if you are keen on the property. Should this right be waived this occasion will allow any other interested parties including conditional buyers the opportunity to offer – competition can increase.
10. Do I need to Register as a Bidder?
Although not compulsory, it is really important for your agent to
know if you are interested in the property and if indeed you are going
to be a bidder.
The reason for this is simple; if you make your intentions known to your agent, he/she can be there to assist you during every step of the process, ie making sure you have all of your questions answered and making sure you have everything in place to become a bidder. If your agent doesn’t know you are interested, you may miss the opportunity to buy.
11. How do I bid?
Should you or another representative be bidding for you, you need to make your intentions known and display your bids with clarity and authority, take control. You need to impose yourself on the auction and make it look like you are going to be the buyer.
Start with a bold opening bid. Bids should be “loud” and clear. Should another bidder jump you, bid back immediately.
Bid up into another price bracket to try and turn your competition off.
Have the confidence to bid, this may be the only chance you have of buying the property so don’t sit on your hands – bid, bid, bid! Your agent can assist you here.
If you do not bid and you have interest in the property you may miss the opportunity.