BY LUCY CORRY
IF you're keen on a property that's going to auction, preparation is everything. A successful bid means you are immediately committed to buy the property; you cannot seek legal advice, arrange finance or even get the property valued or inspected when the auction is over.
That means you need to do all your due diligence in advance of auction day. Before the auction (usually after you've viewed the property), the real estate agent working for the seller should provide you with a copy of the terms and Contract of Sale, which sets out what chattels will be included with the property. This document will also tell you the amount of the deposit to be paid by the successful bidder, and when the balance of the payment must be made. These documents should be checked by your lawyer.
You should consider having the property checked (preferably by a qualified inspector who has professional indemnity insurance and carries out their work in accordance with the New Zealand Property Inspection Standards and obtain an up-to-date Land Information Memorandum (LIM) from the local council. It's a good idea to get a valuation of the property, especially as you are likely to require one if you need a loan. Some websites provide free estimated market values that may be useful.
There's a lot to take in at an auction and it's easy to feel overwhelmed. If you can, go along to one as an observer to see how the process works before you actually want to buy. Remember that the auctioneer is working for the seller and they want to get the highest price possible for the property.