# 07 - Eliminating the Competition - Deadline & Auctions

Buying a great deal.

That's the aim right ?

There are 2 main ways to buy property here in NZ. 

1. Deadline sale ( I'm lumping all versions of putting in an offer into this - deadlines, priced, unpriced, & best offers over a certain price)
2. And Auctions.

One of the best ways to eliminate the competition is to move FAST. 

Speed wins !

I talk about this a lot on my social channels, but lets unpack how this actually works in reality.

Here is the strategy to eliminate the competition in both buying formats.

Deadline Sales

This is the most simple of the 2. You simply need to get a 'suitable' offer in as fast as possible. 

1 of my recent deals were bought in this way. This is the exact system I used to win this, without giving anyone else a chance to even get ready to compete against me.

• I saw a property hit Trade Me. ( Was a Wednesday night )
• I ran my initial due diligence (Full Due Diligence article / podcast coming next week)
• I organised an early viewing for Friday (first open home was not till Sunday)
• I wrote up an offer on Friday afternoon - Very clean contract, just 5 days due diligence, decent price, flexible settlement.
• Deadline brought forward before anyone even had a chance to look at it.
• I won it without any competition.

Now there is a clause you can put into your contract to essentially cancel the deadline process - I didn't use it in this situation, but it can be a game changer if used well.

Get your 'Deadline Cancelation Clause' here

Auctions

Now these are harder to control, there are more rules to follow. The whole premise of the auction is to have competition to drive up the price.

But... you can still knock out the competition in 2 ways.

For these you need to be pre-approved with finance, have done all your due diligence upfront and be willing to buy unconditionally. ( this is the main reason I don't prefer auctions)

1. Put in your unconditional offer subject to the auction being cancelled.

While this is not promoted by any real estate agent ever (it takes away ALL competition) this is perfectly legal and worth trying. You can refer back to clause 2.6 in the Auction Contract, if there is any push back.

(section with 2.6 below, full first page at bottom of email - for reference)

Your offer needs to be strong, unconditional and attractive enough to get the vendor to cancel the auction. 

This won't work 99% of the time - but you only need that 1% to win. 

It takes ALL the competition away.

2. The more common way to beat the competition at an auction is to 'bring the auction forward'.

Again, you need to be able to buy unconditionally, have done all your due diligence (fast) and abide by the normal auction process. 

How this works is you submit your offer - again this needs to be strong, and if the vendor thinks its good enough, they will bring the auction forward and your offer will become the opening bid at the auction. 

So if no one else is ready to buy, your offer is the reserve price and you can buy it for that amount.

BUT.. it does open the door for other bidders to turn up and bid against you, raising the price.

So those are the ways you can beat the competition via the 2 most common sale methods.

But before you try to beat the competition, you need to know why you are buying, what makes a good deal, and what you are doing to it to add value.

You can start getting answers to these questions,  with a 60min Strategy session with me.

Book you 1:1 Strategy session here - With $100 off for a limited time - get in fast

I have a full breakdown of my Due Diligence Process coming out next week and newsletter & podcast.

How to do it Fast, for Free & to get a Full overview of the deal. (linked when live)

PS - below is the full first page of an auction contract, giving context to where the clause 2.6 fits in to it.