Three homes go to mortgagee auction in Epsom on Wednesday. One is a three-bedroom house on a 650m² section in Ōtara. Another is a compact home in Tuakau. The third is a five-bedroom townhouse in Flat Bush. They’re in the same auction session, but each offers a different test of what buyers are willing to pay when a lender is selling. Harcourts auction schedule
LawNews reports that more than 300 New Zealand properties have gone to mortgagee sale this year, the highest level in six years. That gives bargain hunters more properties to look at. What matters is how the winning bid stacks up against recent local sales once the buyer accounts for the risks in the contract. LawNews via interest.co.nz
Three mortgagee auctions to watch
Harcourts Property Ventures has scheduled all three auctions for 11.30am on Wednesday, 18 November 2026, at G01/223D Green Lane West, Epsom. Here’s what’s going under the hammer and what nearby homes have fetched.
65 Bairds Road, Ōtara. Harcourts lists a three-bedroom, one-bathroom home on about 650m² of freehold land. Two recent three-bedroom, one-bathroom sales show why a suburb-wide median can be a blunt tool. 13 Perth Street sold for $597,500 on 4 November on 670m², while 22 Clayton Avenue sold for $738,000 on 14 October on 716m². That’s a $140,500 gap even before accounting for differences in condition, location or what could be done with the land. Harcourts listing · Ōtara sales records
14 Jellicoe Avenue, Tuakau. The three-bedroom, one-bathroom home is listed at about 77m² on a 557m² freehold section. Trade Me Property records a $675,000 sale on 18 September for 23A Jellicoe Avenue, another three-bedroom, one-bathroom property on the same street. It’s a starting point for comparison, with floor area, land and condition still to account for. Harcourts listing · Tuakau sales records
6A Christella Street, Flat Bush. This five-bedroom, three-bathroom townhouse has about 172m² of floor area on a 191m² site. Trade Me Property shows recent five-bedroom, three-bathroom sales at 11 Earlshall Drive and 25 Woodberry Drive, with prices still to be disclosed in the public records checked. On Christella Street itself, No. 11 sold for $1.562 million in June, but it has seven bedrooms and nearly twice the land. The best comparison here will be another compact five-bedroom townhouse with a disclosed sale price. Harcourts listing · Flat Bush sales records · 11 Christella Street sale record
What protections can buyers lose?
An ordinary auction purchase is generally unconditional. At a mortgagee auction, the agreement may also remove or limit warranties a seller would usually give. Property lawyer Joanna Pidgeon told a Law Association webinar that lenders often don’t have possession of the property. Depending on the contract, that can leave buyers without a guarantee the home will be empty at settlement. Pidgeon also advised purchasers to arrange cover from the point their bid or offer is accepted. Settled.govt.nz auction guide · LawNews via interest.co.nz
Before bidding, ask a property lawyer to check the actual auction agreement. Does it promise vacant possession? Which warranties have been removed? What does it say about chattels and damage before settlement? When does risk pass to the buyer, and can insurance start then? The answers depend on the agreement for the individual property.
A mortgagee auction still has a seller’s price to meet
Under section 176 of the Property Law Act, a lender exercising its power of sale must take reasonable care to obtain the best price reasonably obtainable at the time. At auction, if bidding fails to reach the reserve, the property can be passed in. For anyone trying to measure a discount, the figure that matters is the confirmed sale price. Property Law Act 2007, section 176 · Settled.govt.nz auction guide
The Property Noise test is simple. Start with what a similar home actually sold for. Adjust for differences in land, title and condition. Then allow for the costs the auction terms may leave with the buyer, from repairs to a delay getting possession. Wednesday’s results will show what bidders were prepared to pay for these three homes. The contracts help explain what they were prepared to take on.
Would you bid at a mortgagee auction? How much cheaper would the home have to be before you’d take on the extra risk?