First National Real Estate Offer 'A Buyer's Guide to Auctions'

First National Real Estate is your local real estate team for the Coromandel Peninsula, with offices in both Whangamata and Tairua.  At First National, they offer a full real estate service, and are experienced Auctioneers, (offering Tenders too) and of course Fixed Price.

Many people are very wary of going to auction, so First National provide a Buyers Guide to Auctions to allay their perceived fears. As they explain, an auction is a method of selling a property through the process of public negotiations. Purchasing property through an auction allows you to publicly negotiate the price. It is best to have your finance pre arraigned or have the money in the bank before you bid, as the winning bid will be a binding contract to purchase. 

The auctioneer will open the bidding by asking for an opening bid, and then nominates for the bid to go up in increments of $10,000. To place a bid, you simply attract the attention of the auctioneer by raising your hand, calling out your bid or nodding your head when you catch the auctioneer’s eye.

Once bidding reaches the reserve price, the property is “on the market” and will sell to the highest bidder when the bidding stops. The reserve price is set by the client, prior to the auction and is established as a result of feedback from interested parties during the marketing process.

If you are interested in bidding for a property, make sure you register your interest formally with a First National salesperson. That way, if a pre-auction offer is made, you will also be contacted and given the opportunity to submit your best offer. In most cases you can place an unconditional offer prior to auction day. If the offer is at an acceptable level to the client, all other registered buyers will be contacted and given the opportunity to submit a bid. Simply submit your offer in writing on the Auction Particulars & Conditions of Sale (ask your First National salesperson for a copy), accompanied by a 10% deposit cheque.

Before bidding at an auction you need to have read and understood the Auction Particulars & Conditions of Sale, and be in a position to bid on a cash unconditional basis. You can organise pre-approval through your bank or mortgage broker and then bid up to a price you are prepared to pay. You need to be able to pay 10% deposit by direct bank transfer to the agents trust account, and sign the contract as soon as the auction is over.

For more information on houses for sale Whangamata, houses for sale Coromandel and rural real estate please go to http://www.corofirstnat.co.nz .