Volume #41: How to Buy a Property at Auction… Without Wasting Money
Read Time: 3-4 minutes
PROBLEM: Auctions Force You to Spend Before You Win
Most buyers:
Pay lawyers to review contract, title and LIM report.
Get building inspections.
Secure a valuation on an urgent basis (if required).
If they lose, that money is gone.
This can range from $1,500 to $2,000 including GST.
Back to base camp to start again.
RISK: You Could Lose Money Without Buying a Home
No conditions, no cooling-off period.
If issues arise, you’re stuck.
You need to do all your due diligence in prior to the auction and not after the auction.
SOLUTION: Wait for the Property to Pass In...
1. Skip the Auction
Track properties you like and note auction dates.
Use a spreadsheet or table.
We recommend using realestate.co.nz and creating a list of favourites.
2. Talk to Your Lawyer & Mortgage Advisor
Tell them you’ll only act if the property passes in.
3. Follow Up With the Agent
If it doesn’t sell, ask the agent to contact you.
They will.
You can then negotiate with conditions.
If you are successful with a conditional offer, then you can start spending money on due diligence: legal review, building report and valuation (if required).
4. Submit a Conditional Offer
You only spend money after your offer is accepted.
UPSIDE
✔️ No wasted costs.
✔️ More negotiation power.
✔️ Better contract conditions.
DOWNSIDE
You might miss out if another buyer steps in, but at least you did not waste any time or money!
TL; DR
✔️Avoid auctions, track results
✔️ Only spend after an offer is accepted
✔️ Negotiate with conditions
Broker On the Beach Newsletter
Every week, I’ll send you time-saving strategies and tools to guide your clients through buying their first home — with less stress and more results.
