Nicola Kelland - Auctions

Auctions are currently a very popular way to sell a property. When there are a number of buyers in the market and a shortage of property to buy, a sale by auction can achieve a very good result for the owners. But a successful result is not just about what happens on the day of the auction, it is a lot to do with preparation and planning during the previous weeks. Purchasers buy your property on an unconditional basis, so they will do in-depth due diligence to ensure that everything about the property is legally in order.

Preparation.
Auction marketing programmes are usually only around three to four weeks long, so once you have decided you want to sell your home, make sure you have everything in order. Land information memorandums on your property are an essential element for purchasers. They can take up to ten days in Auckland City to obtain from council, unless you pay extra for an urgent LIM. It is common that home owners have never seen the information that their local council has on file before they decided to sell. Ordering a LIM as soon as you start thinking about selling is a great idea, to ensure  you have sufficient time to tidy up any issues that the LIM might flag. Common problems I see, are when building works have not had their final Code Compliance Certificates, sometimes this only requires a further inspection and application to council for a CCC, but this can take several weeks. Purchasers and their advisors will be very reluctant to take on the risk of purchasing at auction without CCCs in place at the time of sale. Swimming pool fencing is another area where we often see problems. If your pool does not comply with the council regulations, this will be stated on the LIM. It seems that ordering a LIM from council often triggers a swimming pool inspection, and in some cases, the pool fencing no longer meets the rules. Once again, purchasers and their advisors are reluctant take on the problem of non- compliant pool fencing, as then they will be required to rectify the fencing, which in some cases, is an expensive exercise.

Property Titles
Every purchaser looking to buy your property will be wanting to view and scrutinise your title before purchasing. Make sure that everything on the title is in order. This is especially true when you own a cross lease property. Sometimes with these titles, we see problems when owners have extended decking, built a garage or made some alteration to the outline of their property. These changes need to be recorded on the flats plan attached to the title. Often this step has been missed, and it is only when the owners want to sell, they realise there is a problem. In most cases, it can be rectified, but it does take time, weeks at least, and some I have seen have taken months.

So be prepared before you start your auction marketing. The last thing you or your real estate salesperson wants to have happen, is to discover you have a problem with a LIM or a Title and you are already half way through your auction marketing. You may have spent a few thousand dollars already in the process, only to find you have to withdraw the property from sale while you spend the next weeks or months tidying up your LIM or Title.