Your Guide to Buying and Bidding at Auction with Ray White Whakatāne

When searching for homes for sale in Whakatāne and the surrounding areas like Coastlands, Edgecumbe, and Ōhope, buying at auction is a fast, highly transparent, and effective method. The team at Ray White Whakatāne real estate are experts in this field, guiding hundreds of clients through successful sales every year.

We believe that being prepared is key to confidence. Here is our simple guide detailing what to expect when bidding at an auction, ensuring you’re ready to secure your dream property in the vibrant Whakatāne property market.

Getting Ready for Auction Day: The Essential Preparation Checklist

Successful bidding starts well before the auctioneer calls for the first bid. Our professional, experienced agents are here to help you navigate this preparatory stage, which is vital for an unconditional purchase.

1. Register Your Interest & Stay Informed

Let your Ray White salesperson know as soon as you are interested in a specific property. This ensures you are kept fully informed of any price adjustments, new disclosures, or, most importantly, if a pre-auction offer is made that could accelerate the sale process.

2. Complete Due Diligence

Because an auction purchase is unconditional, all investigations must be finalised beforehand.

• Property Inspections: We strongly recommend obtaining a pre-purchase building report from a reputable specialist. This gives you a clear picture of the property’s structural health.
• Council Compliance: Get your solicitor to check the Land Information Memorandum (LIM) and satisfy themselves regarding any local authority compliance issues. This is especially important whether you are buying a family home in Ōhope or an investment property in Coastlands.
• Disclosure & Documentation: Your salesperson will disclose any known defects, and these will also be clearly noted in the written Auction Conditions of Sale.

3. Review Legal and Contractual Matters

It is crucial to have your solicitor meticulously peruse the following documents:

• The Auction Conditions of Sale (including the Certificate of Title).
• The Chattels List (ensuring all inclusions, like light fittings or curtains, are as expected).
• Any Special Clauses relating to settlement date, deposit amount, and known property defects.

4. Secure Your Finance (Unconditionally)

All auction purchases are unconditional. You must have your finance approved and ready before auction day.

• The 10% Deposit: If you are the successful purchaser, you will be required to pay a 10% deposit immediately upon signing the sale contract.
• The Bidding Buffer: Our expertise suggests arranging finance for a little more than your absolute desired maximum. Property is a long-term investment, and not losing your dream property—whether you are selling property in Edgecumbe or buying your first home in Whakatāne—is worth that extra preparation.
• Variations to Conditions: If you need to alter any standard conditions (e.g., settlement date or deposit amount), this must be arranged and agreed upon with the vendor prior to the auction via a ‘Side Agreement’ facilitated by your salesperson.

Understanding the Bidding Process

Bidding is straightforward. When you wish to bid, simply let the auctioneer know by raising a hand or calling out.

Genuine Bidding, Genuine Buyers

You can be absolutely assured that every person bidding at a Ray White auction is a genuine, interested buyer. We operate with complete transparency and do not use ‘dummy bidders’.

The Role of the Auctioneer (Vendor Bids)

Sometimes, bidders hold back, waiting for the property to be ‘on the market.’ To help move the bidding towards a price acceptable to the vendor, the Sale of Goods Act 1908 permits the auctioneer to place bids on the vendor’s behalf (Vendor Bids).

• Vendor bids are only used at the auctioneer’s discretion.
• They are always below the reserve price and below the level the vendor would be prepared to accept.
• This is a tactic to encourage active bidding and help buyers reach the reserve, not penalise them.

If you hold the highest bid when the property reaches the reserve price, you will be the joyful new owner, ready to settle into your new home in Coastlands, Ōhope, or Whakatāne!

Frequently Asked Questions (FAQs)

Q: Why choose Ray White Whakatāne as our real estate agents?

A: Ray White Whakatāne brings decades of combined experience, local expertise, and the authority of a world-class network. We are deeply connected to the community and specialists in the Whakatāne property market, ensuring honest advice and proven results whether you are buying or selling property in Edgecumbe or any nearby suburb.

Q: How can I check the value of my home before selling property in Ōhope?

A: The best first step is to contact our office for a free, no-obligation property appraisal. Our expert agents will analyse comparable recent sales in Ōhope, Coastlands, and Whakatāne to give you a clear, accurate, and current assessment of your property’s value.

Q: What is the most important document to check before bidding on homes for sale in Whakatāne?

A: While the LIM Report is crucial, the Auction Conditions of Sale is the most vital legal document for an auction purchase. You must have your solicitor review this and the Certificate of Title to understand all terms, clauses, and obligations before you bid.

Q: What happens if the property doesn’t reach the reserve price?

A: If the highest bid does not meet the vendor’s reserve, the property is ‘passed in.’ At this point, the highest genuine bidder is typically given the first opportunity to negotiate directly with the vendor, giving them a strong advantage to secure the purchase immediately following the auction.

Need further clarity on the auction process? Our resident Auctioneer, Wayne Olver, is happy to share his expertise and answer any detailed questions you may have. Contact the Ray White Whakatāne office today.