BUYING AT AUCTION OR DEADLINE SALE
Selling property by auction or deadline sale has become almost the norm in post-Covid-19 Canterbury. What we are hearing from agents is that there are too few listings and too many qualified buyers contesting those listings that there are. Sound Familiar? If you are looking to buy in the current market, you may well be experiencing the frustration that undoubtedly comes with that. The service we provide as your conveyancing lawyer could save you lots of money. If that sounds like you, please read on!
From a purchaser’s perspective, this could become an expensive exercise if you do a full due diligence exercise on a property with a lawyer only to miss out on property after property and then get a bill from the conveyancing lawyer every time.
When a property goes to either auction or Deadline sale, a vendor via their agent will traditionally provide information about the property including a Land Information Memorandum (LIM), a copy of the title, any earthquake-related information and sometimes, but not always, a building inspection report. Of course, for a purchaser, all of this means having a lawyer look through the auction or deadline pack and advising if there are any obvious issues with the information provided. It sometimes adds up to in excess of 100 pages of information to be digested and reported on.
Sometimes as a purchaser, you may feel the need to obtain a building inspection report at your own cost too if one is not provided and you feel it sensible to obtain one or your lender or insurer requires one. As a purchaser, it is also necessary to have your finance 100% sorted for the purchase of the particular property when buying at auction. A pre-approval is not sufficient. You must also have insurance in place from the fall of the hammer if successful.
For obvious reasons, if buying in Canterbury, having insurance in place is absolutely vital! On occasion, you may even need a valuation for your lender. For first home buyers, there is also the need to make sure you have Kiwi-saver preapproval and First Home Grant approval from Kainga Ora too if hoping to use those sources of funding.
Of course, the difference with a deadline sale is that you can still insert conditions in the agreement for your own benefit so you do not have to be unconditional as you do at an auction. The vendor hopes however that in supplying you with some information, that if you are happy with the LIM for example, you might make a nice clean offer without a LIM condition. Often, the cleaner your offer (the fewer conditions) the better chance you might stand of being successful.
FREE AUCTION OR DEADLINE REPORT
If your conveyancing lawyer does the due diligence on the information provided properly and does not just give it a cursory glance, there can be a lot of time spent on pre-contract due diligence. A comprehensive review of an auction or deadline pack should not be dealt with by a quick phone call either in our opinion. We provide a thorough written report of all the information provided in the auction or deadline pack.
If you are unsuccessful at auction or deadline on two, maybe even three occasions and you get a bill from your conveyancing lawyer for say $400 plus GST every time, it can get expensive very quickly. Add to that the possible cost of a building inspection report and/or a valuation and you could be considerably out of pocket after a failed bid at auction or deadline sale. This is particularly the case in the ultra-competitive market we are experiencing at present.
One of the key services we offer for those looking at a property purchase at auction or by deadline sale is to review the contract and all associated information and provide a written report, at no cost to our client. When you add that to the fact that when you are successful at auction or deadline sale our price for your conveyance is guaranteed once advised to you, and we have a lot of happy buyers. In our experience, the vast majority of people for whom we perform this service remember us and come back to us for their conveyancing when eventually successful, whether at auction, deadline sale or otherwise.
So if you are looking to buy at auction or make an offer on a property offered for sale by deadline sale and would like one of our written reports on a property you are interested in and, the comfort of a guaranteed fee structure, give us a call or go to our contact page now and send us your details and we will contact you to discuss your requirements. In the electronic age, we live in it doesn’t matter where your purchase is because we can do conveyancing work for you no matter where you are located. If you prefer to talk to us in person, give Brent a call on 021 222 4546.