Only a small proportion of domestic properties in New Zealand are offered for sale at public auction, but selling at auction is becoming more popular.
These are usually properties whose value isn’t easily determined, such as unique luxury properties and those requiring major renovation. Properties repossessed from those who’ve failed to meet their mortgage repayments are also sold at auction. If you have an eye for a bargain or enjoy the thrill of the auction room, you may wish to consider buying a property at auction. Before doing so you should:
If the property seems genuine, you could consider making a pre-auction bid of around 30 per cent less than its market value. Prices fetched at auction are notoriously unreliable and sellers who are ‘jittery’ may (legally) agree to a deal before the auction, in which case you could have yourself a bargain!