Ray White

For buyers

How to buy a property at auction.

Buying at auction can feel daunting the first time — no cooling-off period, no negotiating after the fact, just a set date and an open floor. It's also one of the most transparent ways to buy: you see exactly what you're up against, and the price is decided in the room, not behind closed doors. Here's how to walk in prepared.

An auctioneer taking bids at a Ray White A T Realty auction

Before you bid

Eight things worth doing first.

  1. 1

    Get pre-approved for a mortgage

    This is the single most important step. It tells you what you can actually afford before you're standing in the room, and it means you can bid with confidence rather than guesswork.

  2. 2

    Set a maximum budget

    Decide your absolute limit beforehand, and hold to it. It's easy to get caught up in the moment and bid past what you meant to spend.

  3. 3

    Research the property

    Know the property's value and what comparable homes nearby have actually sold for. That's what sets a realistic budget — not the advertised price range.

  4. 4

    Understand the auction process

    Know how the day runs and what to expect before you get there. It's a lot easier to bid clearly when nothing about the process itself is a surprise.

  5. 5

    Get your solicitor to check the auction pack

    Have a solicitor review the title, LIM and any other documents in the auction pack before bidding — a winning bid at auction is unconditional, so this has to happen beforehand, not after.

  6. 6

    Arrive early

    A good seat and a few minutes to watch the room before your property comes up makes the process far less intimidating.

  7. 7

    Don't be afraid to open the bidding

    Starting the bidding can work in your favour — it signals to the room that you're a serious, committed buyer.

  8. 8

    Bid with a clear, confident voice

    Auctioneers and the room respond to clarity. A clear bid is a lot less likely to be missed or second-guessed than a hesitant one.

Finance

Get your finance sorted first.

Home loan pre-approval is worth having whether you're buying at auction or not — it shows sellers you're a serious buyer, and it tells you exactly what you can spend before you ever raise a hand.

Because a winning bid at auction is unconditional, pre-approval isn't optional the way it can sometimes be with a normal offer. You need to know your number before auction day, not after.

Not every bank lends the same way, and how much you're approved for depends on each lender's own criteria. A mortgage adviser who works across the market — rather than one bank — can help you understand your real borrowing capacity before you bid.

Recommended

Float Mortgages

We work with the team at Float Mortgages, Auckland-based mortgage advisers, for a free, no-obligation chat about your borrowing options.

Talk to Float Mortgages

Ready to bid?

See what's going under the hammer at our next Game Day auction event.

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