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**essence** · 09-10-2008, 03:40 PM

1) What are the pre auction checks that i should get done

This is a big question. You can spend $000's or nothing. It depends what you want to find out. IF you can get access to the house (not always the case with a mortgagee sale), see if you can find a friendly builder to go through with you and give u an idea of costs/flaws etc.

2) What should i get for a mortgage approval? In the sense do banks need a registered valuation (we are looking at kiwibank as it is the cheapest option and we will not be having a 20% deposit...will have about 20 k deposit and I will need the money to put down as deposit straightaway after the auction)

WRONG!! You can advise the Real Estate Agent (REA) that you are dealing with, that you are ONLY prepared to put down a small deposit for example. Don't tell them you've got $20K, because they will want the whole lot!! The deposit is only required to covered agent's fees anyway.

If you are determined to buy any house in this market, you would be best to get pre-approval first, but not based on this house but based on what you can repay.

3) Can I also make some checks at the council office as I do not have a LIM report

At some Councils you can go in an ask to view the Property Envelope (PE). This should hold all the information on the land & house. A lot of times it doesn't. There may be a charge for this viewing the PE.

4) Any recommendations for buiders/ valuators in hamilton area who are cheap and reliable.

Sorry can't help with that one.

this is called a Forced sale which is a step before mortgagee auction..any guidance will be greatly appreciated...is there any way of checking stuff online regarding the property.
looking forward to a prompt reply.
Cheers

It has to sell, it doesn't matter what it's called. Don't buy into the REA's pressure "Oh, I've got someone else who's really interested". So what. A house is just a house. Be aware that if the owners are being "forced to sell", the chattels etc that you see may not be there when you settle. Remember if the owners are in dire straits what's to stop them taking what they want. Legally, they shouldn't but by that stage, they're really not going to care.

With the financial problems at the moment, there will be more opportunities coming along. Just make sure you know what $ value you can buy up to and don't go beyond that.

**Green Fish** · 09-10-2008, 03:54 PM

Firstly, I would not get involved, given the current global banking situation.

But if you insist, I agree with essence. One proviso: the "council checks" issue is covered in the standard-form contract, as long as you tick the right box.

The safest course is to pull out. The markets are now going to places that they haven't been before, at least in my lifetime.

**geeman** · 09-10-2008, 03:56 PM

Thanks for your prompt reply..The CV or registered valuation is 370K and they say it will sell for 280 K...because they say that the 10% of sale price is the normal deposit require..can I tell them that I can pay about 10000 deposit if i win...do I need to engage a lawyer now..I am sorry if i am sounding stupid but have absolutely no idea as to how to go about this...Also do i need to get a LIM?

**Dean@Massiveaction** · 09-10-2008, 04:04 PM

Geeman you ned to establish if you can get the money and with minimal deposit you could be a no-go. Ring my broker Kris 021300192 and make sure you can even bid first.
If you can then get your solicitor to do a title search immediately and get into the council and check the property file.

If you know any friendly builders get one to walk through the property and check for any obvious issues.

Sort the money first!!

**Green Fish** · 09-10-2008, 04:10 PM

You can make the sale subject to a LIM. You will then end up paying $200-300 to the Council for some worthless garbage about drainage easements. This tripe will conclude with a disclaimer of any liability. So the LIM is a very-red herring. Forget about it.

The real issue is the price. What is the anticipated rent?

**princess** · 09-10-2008, 04:11 PM

I have a good friend who is a builder in Hamilton. His name is Raymond Kelsen - home number is eight 55 5 six seven 5... he is very well regarded, and though I have seen homes he has built I have not contracted him for any work (as i have a dad and a bro also builders near where i live.)

**geeman** · 09-10-2008, 04:11 PM

Thers is such a difference between Kiwibank and others about half a percent..but the problem with kiwibank is they will never ever call you back and answer your questions...on the phone they say u r sweet for a mortgage of 320K...I don't think any MB deals with kiwibank because they probably do not get any cuts from them...my bank Westpac is fine with my finances and they had given me an approval of 275K because i asked for that amount...yes the market is getting us worried too with the global crisis...probably a feeling as first home buyers is we will miss the good deals..but are the deals actually good as yet for buyers or things will unfold in the next couple of months?

**geeman** · 09-10-2008, 04:14 PM

Oh we are not looking to rent it out..we will be buying it for ourselves..do you think there is still some use of getting a rental appraisal for the place..thanks for all the contact numbers...will give them a go...I do have a mate who is a builder but he is away for a wedding till the end of this week...

**Green Fish** · 09-10-2008, 04:18 PM

As at today, the banks won't even lend to themselves.

Think about it: How many properties in NZ are purchased without a loan from a bank? Less than 1 %.

So you are entering a market with no buyers.

**Tucker** · 09-10-2008, 04:33 PM

There still are buyers out there and you can still get mortgages in NZ.

**princess** · 09-10-2008, 04:37 PM

And if you are buying a house to live in, why would you want other buyers around - all they'll do is push the price up!

PS Do not bid against yourself - if the house HAS to be sold, and you are the only buyer, don't be talked into raising your bid.

**geeman** · 09-10-2008, 05:05 PM

clarification please

For those of you who have experience buying at auctions..is it a fact that 10% of the purchase price is needed as deposit or is that negotiable...the rea has assured me that this is a ruling and that 10% HAS to be paid if successful at a bid..i can get an overdraft from my bank if need be for a stop gap arrangement

**Hound** · 09-10-2008, 05:28 PM

Geeman, it's a buyers market at the moment. So you can set your own terms, ones you are comfortable with. An agent won't decline a sale if you don't stump up all his commission up front, despite his protests. Personally I don't like auctions & would refuse to buy at one.

**Dean@Massiveaction** · 09-10-2008, 05:42 PM

Instruct the agent to get the vendors to agree to a smaller deposit. If the bank is in control they will say no, but the vendors themselves probably will agree. There are no "rules" unles it is mortgagee

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uregnt guidance for an auction please

uregnt guidance for an auction please

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