25/08/2026
Ever wondered what actually happens when a house sells "at auction"? We get asked this a fair bit, so we thought we'd explain it properly.
Here's the gist: the seller has a reserve price in mind, the lowest they'll actually accept, and it's kept private. On the day, people bid against each other, and if the bidding reaches the reserve price, the highest bidder wins. And that's it, no cooling off, no going home to think about it. The moment the hammer falls, it's done. Sign then and there.
If the bidding doesn't quite reach reserve, sometimes the auctioneer will pull the top bidder aside for a quiet chat and see if they'll come up a bit; if the seller's happy with that number, away it goes again. If nobody gets there, the house is "passed in," and it's back to the seller to decide what's next (often straight into negotiations with whoever was keen).
One thing that catches buyers out: because it's unconditional the second it sells, all the homework: LIM, building report, finance, a lawyer's look, needs to happen before the big day, not after. You can't bid "subject to" anything at auction.
Worth knowing whichever side of the fence you're on. (Info from settled.govt.nz — the official guide for this stuff.)
Got a question about how it all works, or how it compares to negotiation or tender? Pop it in the comments, happy to explain 👇
Total Realty Kaikoura
Monique Elario - Total Realty Kaikoura