By Kay Keam - 3 May 2013
In the red hot Auckland property market, many aspiring buyers
have found themselves caught in an increasingly complex auction
process. Auctions are currently the most common method of sale with
two out of five properties being sold this way. Auctions are
consistently brought forward from the advertised date and this can
lead to confusion and tight timeframes.
Most vendors and real estate agencies retain the right to bring
an auction forward from the date originally advertised. This
normally occurs when a pre-auction offer has been made to the
vendor which is above the reserve price. The agent then sends out
notification of the new auction date to everyone who has previously
expressed interest in the property. On the auction date the reserve
price will be the figure contained in the pre-auction offer. If no
higher bids are received on the day, then the vendor will be able
to "fall back" on the pre-auction offer.
But what if the party who advanced the pre-auction offer decides
to withdraw between making the offer and the auction date you ask?
Well, in the usual course of business, the agent will have the
purchaser sign an acknowledgement that they will not do this.
The whole process is of course favourable to a vendor and can
leave very little time for an interested purchaser to investigate a
property, particularly if they only have one or two days to do this
before a revised auction date. Martelli McKegg can of course help
you with this by providing prompt legal advice throughout this
process.
Contact
Elise
Markwick