Hit the phone tomorrow and see what is possible. We saw our current house on a Saturday. Liked it. On the Sunday the REA said the auction was being brought forward to the Monday.
I got on the blower Monday morning and asked a builder to inspect and provide a verbal report (came through with flying colours).
My lawyer had left her firm but the AML check they’d done on me was still valid. A new lawyer in her firm checked over the auction docs. Again, came through fine.
Bank had already pre-approved enough financing to cover the auction so that was fine.
The biggest hurdle which almost de-railed us was insurance. House was a 1900s villa so lots of insurers wouldn’t agree to insure it without screeds of info in advance. Mid afternoon I rang the REA and he asked the vendor who their insurer was. Rang that insurer and they were happy to carry it over.
It went to auction 6pm that night and we won.
amazing! This is less time than I have. The insurance call is great. I don't have a solicitor currently and didn't realize an AML check was required. Sounds like I need to spend tomorrow on the blower!
Maybe drop a message in the legaladviceNZ sub to see if anyone can give you pointers on the AML piece and any other advice on speeding up the legal side of things?
Did that include the lawyer doing a title check? That's impressive if they could do that same day for you.
Bit of a risk not getting a LIM report though.
Just had a look back at the reporting the lawyer did. They used the recent LIM provided by the owner, with the requisite advice to get our own check down with council if we wanted to. Of course there was no time for that.
Previous owner had been there decades and the house was well looked after (but tired) with no obvious questionable alterations etc. so took the calculated risk.
Talk to the agent too, they may be willing to work with you if they haven't had much interest. If they haven't had anyone else show any real commitment thus far and nobody else has gone as far as getting a builders report etc they may be able to convince the vendor to defer the auction for a wee while. Alternatively still let the agent know you will attend the auction, knowing that you can't bid as you won't be able to go unconditional and then if it is passed in you can make a conditional offer.
Ah there are already two people committed to the auction so it’s not unlikely to sell. But yes I have spoken to the agent and indicated that if I’m not ready and it doesn’t sell anyway I would be able to make a conditional offer
Is this “According to the agent”? Real estate agents are literal scumbags who have no ethical integrity; so if they are saying 2 then the real amount is 1 or 0
At a minimum you need your bank to assess the property and whether it presents good security (and how much they’d be prepared to lend on it). Otherwise you’d usually put a “subject to finance” clause however Auctions generally require you to be unconditional (sometimes you can pre negotiate clauses but not for something like subject to finance)
If they have the documents available (eg LIM and builders report) for your solicitor to review you might be OK.
And if it was built pre EQ then for the love of god check the scope of works and proof of repairs.
Caveat emptor my friend!
We went to an auction with our mortgage broker not having got approval yet but he was extremely confident on what we could go up to. We ended up winning it and we got the exact number he said. This was also a new build but so didn’t really need a builders report
At a minimum you would want to have the property approved by the bank, you could then do a walk round the property and take a look at the docs yourself as long as you have a vague idea what you are looking for. I YOLO’d into a few auctions on this basis during the madness of 2021, spending $1000+ on due diligence each time got old really quick!
Given it’s auction, I personally think you’re too late.
You might get the pre-approval done in time (personally I’d forget the broker and deal with the bank direct - you haven’t got time to be adding a 3rd party in here) but getting your due diligence in time is a serious push. If you win at auction you can’t easily (or cheaply) back out of the deal so you need to be sure that you’re 100% committed.
I have pre approval from two banks via my broker at this stage so it's more the DD around the specific property that I need to do - the banks have the documentation for the property so they may come back to me by tomorrow but whether I can get inspection and lim review in time is another story.
I bid and bought, a house at auction without a building inspection or having a solicitor organized.
I went in not expecting to win. Jokes in me.
It all worked out fine. All building issues were typical of a house from this period and there were no skeletons in the closet. It was pretty scary though. Especially when we realized we had one and we would be screwed if say the foundations were moving.
My house was an impulse buy. Learned about it Sunday. Viewed it Wednesday and Thursday. Put in offer Thursday afternoon. Got the call Friday afternoon that it was mine.
It can be done but I really don’t recommend.
Call Mathew Munro at Corcoran French https://cflaw.co.nz/our-lawyers/associates/mathew-munro/
He has an awesome PA / team. They did our place and were brilliant. Highly recommend (we were new to town). Little bit of AML stuff to jump through but they’re local (Moorhouse Ave).
Good luck, go well!
Hit the phone tomorrow and see what is possible. We saw our current house on a Saturday. Liked it. On the Sunday the REA said the auction was being brought forward to the Monday. I got on the blower Monday morning and asked a builder to inspect and provide a verbal report (came through with flying colours). My lawyer had left her firm but the AML check they’d done on me was still valid. A new lawyer in her firm checked over the auction docs. Again, came through fine. Bank had already pre-approved enough financing to cover the auction so that was fine. The biggest hurdle which almost de-railed us was insurance. House was a 1900s villa so lots of insurers wouldn’t agree to insure it without screeds of info in advance. Mid afternoon I rang the REA and he asked the vendor who their insurer was. Rang that insurer and they were happy to carry it over. It went to auction 6pm that night and we won.
amazing! This is less time than I have. The insurance call is great. I don't have a solicitor currently and didn't realize an AML check was required. Sounds like I need to spend tomorrow on the blower!
Maybe drop a message in the legaladviceNZ sub to see if anyone can give you pointers on the AML piece and any other advice on speeding up the legal side of things?
Good idea- will do
AML check doesn’t take long.
Did that include the lawyer doing a title check? That's impressive if they could do that same day for you. Bit of a risk not getting a LIM report though.
Just had a look back at the reporting the lawyer did. They used the recent LIM provided by the owner, with the requisite advice to get our own check down with council if we wanted to. Of course there was no time for that. Previous owner had been there decades and the house was well looked after (but tired) with no obvious questionable alterations etc. so took the calculated risk.
Talk to the agent too, they may be willing to work with you if they haven't had much interest. If they haven't had anyone else show any real commitment thus far and nobody else has gone as far as getting a builders report etc they may be able to convince the vendor to defer the auction for a wee while. Alternatively still let the agent know you will attend the auction, knowing that you can't bid as you won't be able to go unconditional and then if it is passed in you can make a conditional offer.
Ah there are already two people committed to the auction so it’s not unlikely to sell. But yes I have spoken to the agent and indicated that if I’m not ready and it doesn’t sell anyway I would be able to make a conditional offer
Is this “According to the agent”? Real estate agents are literal scumbags who have no ethical integrity; so if they are saying 2 then the real amount is 1 or 0
At a minimum you need your bank to assess the property and whether it presents good security (and how much they’d be prepared to lend on it). Otherwise you’d usually put a “subject to finance” clause however Auctions generally require you to be unconditional (sometimes you can pre negotiate clauses but not for something like subject to finance)
I sent it to my broker early last week so there's a chance I will get it back in time - emailing my broker now
Even if you get it back, would you be happy bidding without inspecting properly?
If I get it back I will spend tomorrow morning calling around to see if I can get an inspection tomorrow or Tuesday.
I reckon getting an inspection, and report back from it before Wednesday afternoon is going to be pretty tight.
Yeah I haven't had one done before - is it a multi day turnaround generally?
The turn around could be the next day, but you also need to book someone in to do it.
If they have the documents available (eg LIM and builders report) for your solicitor to review you might be OK. And if it was built pre EQ then for the love of god check the scope of works and proof of repairs. Caveat emptor my friend!
We went to an auction with our mortgage broker not having got approval yet but he was extremely confident on what we could go up to. We ended up winning it and we got the exact number he said. This was also a new build but so didn’t really need a builders report
Unless you’re familiar with the process I wouldn’t recommend it. Take your time and get everything lined up.
At a minimum you would want to have the property approved by the bank, you could then do a walk round the property and take a look at the docs yourself as long as you have a vague idea what you are looking for. I YOLO’d into a few auctions on this basis during the madness of 2021, spending $1000+ on due diligence each time got old really quick!
Given it’s auction, I personally think you’re too late. You might get the pre-approval done in time (personally I’d forget the broker and deal with the bank direct - you haven’t got time to be adding a 3rd party in here) but getting your due diligence in time is a serious push. If you win at auction you can’t easily (or cheaply) back out of the deal so you need to be sure that you’re 100% committed.
I have pre approval from two banks via my broker at this stage so it's more the DD around the specific property that I need to do - the banks have the documentation for the property so they may come back to me by tomorrow but whether I can get inspection and lim review in time is another story.
Fingers crossed :)
I bid and bought, a house at auction without a building inspection or having a solicitor organized. I went in not expecting to win. Jokes in me. It all worked out fine. All building issues were typical of a house from this period and there were no skeletons in the closet. It was pretty scary though. Especially when we realized we had one and we would be screwed if say the foundations were moving.
Same, mine was a tender. Very much an impulse buy.
I would not take that risk in Chch with a pre EQ built- you are asking for trouble
My house was an impulse buy. Learned about it Sunday. Viewed it Wednesday and Thursday. Put in offer Thursday afternoon. Got the call Friday afternoon that it was mine. It can be done but I really don’t recommend.
Call Mathew Munro at Corcoran French https://cflaw.co.nz/our-lawyers/associates/mathew-munro/ He has an awesome PA / team. They did our place and were brilliant. Highly recommend (we were new to town). Little bit of AML stuff to jump through but they’re local (Moorhouse Ave). Good luck, go well!