Your buyer strategy may differ depending on the various sale methods used to list a property for sale. Speak to your local salesperson for an in-depth view of each method’s advantages and to develop your buying strategy.
Auctions are a public process where a property is sold to the highest bidder at a level pre-determined by the seller.
The tender process provides a specific timeframe, usually between four-or-five weeks, which allows purchasers an opportunity to conduct due diligence and submit a formal offer. For buyers, this creates efficiency and a reduced lag between acceptance and settlement.
Expressions of interest
Expressions of interest invite all offers from interested parties, allowing the seller the option to choose who they want to negotiate with.
Properties offered for sale by negotiation leave value to be determined by the market, which can be difficult for buyers to quantify. This is where the advice and experience of your qualified Bayleys salesperson can assist in determining where you see value for the property and are comfortable making an offer. Sales by negotiation are generally open-ended, with the absence of time pressure on buyers or sellers.
Auctions are an increasingly popular sale method because they are a straightforward way to buy and sell property in an open environment.
How do I prepare myself for the auction?
Buyers preparing for auction may like to attend other proceedings to get a feel for the environment. Bayleys offices across the country hold weekly auction schedules, and we encourage you to speak to your local salesperson and come along. Other preparations may include:
Do I need to register?
No. At Bayleys auctions, there is no formal need to register. Before bidding, however, you must have received a copy of the ‘Approved Buyers Guide’ to ensure you understand your obligations under the Real Estate Agents Act 2008. Your Bayleys salesperson will require receipt of this in writing.
For more information about the Real Estate Agents Act 2008, visit rea.govt.nz
How do I bid at auction?
For purchasers interested in bidding at auction, we recommend clear and concise communication, and a prior discussion about your sales strategy with your Bayleys residential sales expert, who will be available to guide you through the process.
What is a reserve price and how do I know the property is about to sell?
The reserve price is the minimum value a seller will accept for their property.
What is vendor bidding?
The auctioneer is the only person in the room with the discretionary right to bid on the seller’s behalf, an agreement all Bayleys sellers have acknowledged in writing.
Vendor bidding can occasionally stimulate activity and give potential purchasers a better indication of the reserve price and level at which the property may sell.
Can the property be sold prior?
Yes. Most auction properties where the seller is willing to accept a pre-auction offer will be marketed with the words ‘unless sold prior’. This gives buyers an indication that the auction date could be subject to change should the seller receive an attractive offer before the scheduled date.
To help protect your buying interests, we recommend speaking with your Bayleys salesperson to ensure you are informed of all developments, including whether another purchaser has submitted a pre-auction offer.
If this is the case, all interested parties are invited to submit their best offers, one of which the seller may accept. As a result, the scheduled auction date may be moved up, with proceedings opening at the level of the accepted pre-auction offer.
How can I avoid going to auctions?
You don’t. Auctions are an excellent way to determine current market value and have become an increasingly popular sale method thanks to a successful blend of transparency and simplicity. Your local Bayleys sales expert will be able to provide more information to help you to feel more confident about the auction process.
What contract do I sign?
Before bidding, all interested parties will have access to the auction contract, with additional copies on display prior to proceeding commencement. The auction contract will clearly show all terms and conditions, including warranties, deposit requirements, the settlement date and chattels. Bayleys recommends seeking qualified legal advice before entering any agreements for sale or purchase.
What if I don’t get the house that I want?
While it is disappointing to miss out on your dream home, there’s always the possibility that another buyer may be willing to pay more for a certain property. If so, we recommend learning from the experience and continuing your search. Buyers with a strong understanding of their lifestyle requirements and price expectations are best-positioned to win on the day, details which your Bayleys salesperson can support with their local market knowledge and the latest comparable sales.
What happens if the property doesn’t sell?
If the highest bid doesn’t reach the reserve value, the property will be ‘passed in’, and the auction will conclude. The seller will then consider any post-auction offers which may or may not contain conditions. Typically, the auctioneer will give the highest bidder a chance to negotiate for the property during the auction. This ensures that buyers are provided with every opportunity to buy, on the sellers’ terms, before proceedings are concluded and the property re-opened to the broader market.
Sale proceedings conducted by Bayleys are done so under the regulatory requirements of New Zealand’s Real Estate Authority (REA).
The REA is an independent government agency which promotes integrity and professionalism within the sector. It provides a range of helpful industry resources while protecting buyers and sellers and investigating complaints about professional conduct.
To learn more about the REA, click here.