WARNING: There is a particular reason why some people choose to sell their home at auction!
Are you considering buying under the hammer in NZ? Consider this…
Most home buyers under normal buying conditions will get a building and moisture inspection prior to going unconditional on a property, so why is it that some people don’t follow the exact same process before buying at auction??
Look Out: Did you know the actual reason some vendors prefer to sell their home at auction is because they know perfectly well it will not pass a building and/or moisture test under a normal contract of sale agreement?
For those of you who aren’t familiar with buying at an auction, the basic rule of thumb is that when the hammer goes down, the deal goes unconditional on the day, no matter what potential issues haven’t been discovered within the home prior to the auction. (some auction conditions can vary).
So are you really picking up a good deal?
Recently we conducted a thermal imaging scan, moisture test & building inspection on a home for a client in Auckland prior to an auction. I personally asked the agent the day before the auction if the other interested buyers also had the property moisture tested before auction day, and he said “NO”. My question here is this…
What’s the difference between spending ‘hundreds of thousands’ on a property under normal sale conditions, and spending the same amount on an auctioned property? Answer – Nothing! So why not go through the same pre purchase inspection process prior to an auction as you would a normal house sale… the risk of burning your cash is exactly the same!
The interesting part was this home completely fell over on both inspections. It turned out there were three serious bidders haggling over this home on the auction day… were they actually fighting over a huge can of worms?? (Our client went along and watched… but didn’t bid). The message here is this: If you like the look of a home that’s going to auction, don’t relax your pre purchase due diligence process in the lead up to the auction… just like the people in the above auction did!
It’s not a real estate agents job to moisture test the property, it’s their job to sell it, so how are you ever going to know what you’re really buying … are you really prepared to take such a high risk on such a huge investment?
Don’t get caught out buying a ‘good looking’ lemon!