Buying a property at auction can feel fast paced and unfamiliar — but with the right preparation, it can also be one of the clearest and most confident ways to purchase.

Whether you’re a first home buyer, investor, or returning to the market, preparation is everything. Here’s what you need to know before auction day so you can bid with confidence.

• Get Your Finances Sorted Early. Before you think about bidding at an auction, it’s important to understand your borrowing power. Getting pre-approved for a mortgage gives you clarity around your budget and removes uncertainty on the day. In some cases, especially with lower deposits, a registered valuation may be required by your lender. Having finance in place and ready to go means you’re bidding confidently, not cautiously.
  
  
• Complete Your Due Diligence. Auction purchases are unconditional, so everything needs to be checked before auction day. This includes having your solicitor review the Auction Agreement, Title, and LIM report, and organising a building inspection if required. You’ll also need to confirm insurance can be put in place from the settlement date and register with the listing agent ahead of time.Once the hammer falls, the property is yours — so preparation here is key.
  
  
• Know Your Numbers. Set your budget clearly before auction day. Many buyers find it helpful to establish three figures: a bargain price, a fair market price, and an absolute maximum bid. Banks typically lend on the lower of the purchase price or valuation, so knowing your limits and sticking to them helps you bid confidently without overextending.
  
  
• Have Your Deposit Ready. A deposit is usually required on auction day, often around 10% of the purchase price. Make sure your funds are accessible and not tied up in fixed-term deposits that can’t be released quickly. Knowing your deposit is ready removes last-minute stress.
  
  
• Keep Your Team Aligned. Buying at auction is much smoother when your team is on the same page. Stay connected with your solicitor, financial adviser, and Summit salesperson throughout the process so there are no surprises leading into auction day.
  
  
• Check the Settlement Date Works for You. Before bidding, confirm the settlement date suits your situation. If you’re using KiwiSaver funds, allow time for processing — this can take around 10 to 15 working days and may influence your planning.
  
  
  
  

Auction, With Confidence

With the right preparation and guidance, buying at auction can be a fast, transparent, and rewarding way to secure your next property.

If you’re thinking about bidding, talk to a financial adviser at Mortgage Money, who work closely with the experienced team at Summit Real Estate. From pre-approval through to unconditional finance, we’ll help you understand your options, stay within budget, and bid with confidence on the day.

Buyers Guide to Auction
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