Note: Only the major terms used by Freenzi on their website are included. Others will be added

Auction: The sale of any goods or property through a method of placing bids at a price a bidder is willing to pay, at or during an active auction. Generally other bidders can bid any price. The item or property only sells if the highest bid reaches the owner's reserve price.

Auctions can take place on-site, where the goods or property are located; in an auction room; or online through a web site.Freenzi Real Estate Auctions only offer online auctions 

Back up Bidder: Also known as the under bidder or 2nd to highest bidder, or the 2nd most acceptable bid to the owner. Offers from back up bidders can be taken in writing should the accepted Bidder fail to complete the sale

Bait pricing: Used by some people in the industry to quote a lower price to buyers than what the seller requires for goods or a property. It is justified in trying to attract buyers, who may want to increase their price up to the sellers expectations. Can have the adverse effect of being used to encourage the Seller to drop their price expectations.

Freenzi Real Estate Auctions avoids this practice

  • By requiring an independent registered valuation on all properties being auctioned.
    • This information is made available to all registered buyers
    • An independent valuation professional is the best person to assess a near to accurate market valuation
  • Quoting the Rateable Values on our listings

Freenzi Real Estate Auctions also avoids stating unrealistic value estimates to attract listings

Bid: This is a formal offer by a buyer or bidder in an auction to pay an auctioneers nominated value for goods or a property.

Bid increments:  The dollar value an auction increases from the last bid to the next. In an online auction bid increase amounts or increments can be pre-set.

Building company/Developer: A business building new dwellings for sale to the public.

Building Report: An independent report from a building professional that examines many issues around the integrity of buildings, and offers what is meant to be a fair and accurate written report on the buildings condition.

Buyer:  Interested person(s) interested in bidding at auction to purchase any property

Commission Free: Free of any selling fee based upon a percentage of the value of the property being sold.

Conditional bid: A bid placed in an auction that has conditions associated with it. In most cases standard auctions only accept unconditional bids.

Freenzi Real Estate Auctions accepts bids from registered Property Seekers with three pre-approved conditions. Check the Property Seeker information to see what those conditions are.

Conditional period: This is the post auction period, where a bid from a Property Seeker has ben accepted by the Seller. The Property Seeker has 10 working days to confirm their purchase, which is the Conditional period.

Consultant: This person is the Freenzi Real Estate Auction Consultant, who is responsible for promoting properties for Online Auction sales through our website

Cooling Off period: Freenzi Real Estate Auctions have included a 48 hour ‘Cooling off’ period in the Auction Listing Agreement for the promotion and auctioning of any property. This allows the Seller to cancel the Auction Listing Agreement for any reason within 48 hours of signing it.

This gives the Seller time to seek independent legal advice before committing to the Auction Listing Agreement’s promotion. 

Director(s): This refers to the two Shareholders of Freenzi International Limited, which operates Freenzi Real Estate Auctions, namely Alison and Doug Allington

Dummy Bids: Different Auctioneers in Real Estate auctioning may claim a right to bid on behalf of the Owner, also called the Vendor or Seller. This is a practice to try and draw Buyers or Bidders to place bid and enter the auction.

Freenzi Real Estate Auctions do not undertake Dummy bids on behalf of the Seller, and will cancel the Buyer registration of any Bidder who has not intention to purchase a property, and is found to be undertaking Dummy Bids on a property.

Equity: Is the percentage of the value of a property that the Owners have as their capital. It generally is worked out by taking the value of the mortgage away from the market value, which leaves the owner’s equity as a dollar value

Ethics: There is often a big difference between what is legal and what is ethical. Ethics are connected to personal virtues. A person’s level of behaviour (ethics) reflects their virtues (heart)

The true application of ethics in business is where self-interest is sacrificed for the well-being of another.  To give one example, Freenzi Consultants are trained to place the needs of a Seller to obtain the best possible price, about their own need to earn an income.

Freenzi Real Estate Auctions want to be known for serving “the best coffee in town, by the best staff, and giving the best value for money experience, that encourages customers to come back, and to also recommend us to others with confidence”

Freenzi: Used as an abbreviation for Freenzi Real Estate Auctions

Freenzi Way: Is a statement to explain the auction system, and strategy, which is unique to Freenzi Real Estate Auctions

Full Disclosure: This clarifies the policy position of Freenzi Real Estate Auctions to have the Seller provide as much information on the property, to make it easier for Buyers to make a decision whether to bid or not.

Full Disclosure implies the Seller reveals all they know about the property, such as, its condition, Building Consents, repairs, non-consented work if any, Council Planning rules affecting the property.

Freenzi believe covering any possible unknowns, prevents suspicion or uncertainty in the bidding process, and helps achieve a better outcome.

GST:  The is the Government’s 15% Goods and Service Tax chargeable on Real Estate Industries Sales Commissions, and on the smaller Freenzi Buyer Success fee.

L.I.M.: Land Information Memorandum reports held by Local Councils which cover such matters as Building Consents taken out, Planning issues, Possible flooding issues, and other matters. Buyer’s Solicitor’s generally like to evaluate these L.I.M. reports before advising their Clients

Listing Agreement: Also known as the Auction Listing Agreement. This is the agreement with the Seller(s) to promote their property for auction. It includes terms and conditions and also the Marketing Plan being used

Market: A general term to identify the properties currently up for sale, as well a a reference to the current sales trends of properties within New Zealand.

Marketing period: Each Auction listing has a 4 week marketing or promotion period. If the property remains unsold at the end of this period, the promotion roles over for another 4 week period

Marketing Plan: This is the detailed marketing strategy that will be used to market a property, and includes costings for each component.

Market Value: This is an assessment, near as accurate as can be determined of a property value. It takes into consideration, recent historic sales within the immediate area, and any improvements to the property.

Freenzi Real Estate Auctions have their Sellers use Registered Valuers to determine an accurate value of a property at any time.

Freenzi Real Estate Auctions do not endeavour to gain a guide of value from intending buyers, who in their view would tend to under estimate the value of a property they are interested in.

Mortgages: This is the legal document registered against the Title of a property, to secure all lending and liabilities the Owners have towards the Lender. It is separate from any loan agreements, but secures those loan agreements.

Online Auction: This take place through our website, where bidders can login, and place bids against a property of interest.

Freenzi Real Estate Auctions do not hold On-site auctions at the property being promoted, not do we hold Auction-room auctions.

Open homes: A practice used by most Licensed Real Estate Agents where the public is able to view a property at a set advertised date and time. All those people attending are required to do is fill in a name and phone number upon entering, without proving their identity

For security reasons Freenzi Real Auctions do not hold Open homes. Instead we hold Property viewings to registered Buyers

Password: Used as a 2nd form of security when Buyers create an online account on our web site

Post Auction period: This is the period in time immediately after the Auction closes. Either a successful buyer’s bid is accepted by the Seller(s), whereby a Property Seeker enters a 10 working day Conditional Offer period (Preferential Buyers bid unconditionally), or the property Auction date is re-scheduled to include another 4 week promotional period.

Preferential Buyer:  A Buyer who registers for a fee, who may be interested in purchasing through Auction more than one property over a 12 month period.

  • They gain access to view the Property Portfolio and files of all current Auction listings.
  • They are cash or unconditional Buyers.
  • They are able to bid on any property.
  • They may apply their Registration fee against the Success fee of their first purchase after registering.

Property Portfolio: This is the information included in a file on a property and is used for promotional purposes with registered Buyers.

Property Seeker: Is a registered Buyer interested in one particular property.

  • They gain access to view the Property Portfolio and files of that listing only.
  • They can bid conditionally subject to 3 pre-approved set conditions
    • If their bid is accepted by the Seller, they have 10 working days to confirm those 3 conditions, and go unconditional
    • They pay a Success fee directly to Freenzi Real Estate Auctions the day their bid is accepted by the Seller(s)
      • If they do not confirm the purchase, their Success fee stays active for 12 months from the date of the Auction closed, to be applied against another property.
      • The Success fee does not form part of the purchase price.

Property viewings: This is the on-site property visits undertaken by registered Buyers only, not the public

Real Estate Agent: Are those professionals Licensed under the Real Estate Agents Act 2008 to carry out work as a Real Estate Agent.

Freenzi Real Estate Auctions and their Consultants are Registered Auctioneers under the Auctioneers Act 2013

Register: The process of establishing an online account as a Buyer through our web site.

Registered Valuer: Licensed Valuation Professionals qualified to undertake valuations on Real Estate. Generally, Lenders will require these written reports before determining whether to lend to a Buyer

Reg Val: Or Registered Valuation. This is the written valuation report on a property prepared by a Registered Valuer.

Reserve price: The Reserve price is the lowest price a Seller will accept for the sale of their property.  

Freenzi Real Estate Auctions policy is to not divulge this figure to any intending Buyer.

RV: Rateable valuation

Seller:  Legal owners of a property being auctioned

Solicitor: The is the legal professional, and legal adviser, who is a member of the local District Law Society within New Zealand.  They perform the legal functions on behalf of a Seller or Buyer in completing the Sale and Purchase transaction between a Seller and Buyer. A separate Solicitor  from different firms will act for each party. They also deal with the financial settlement and distribution of funds between parties, and Lenders.

Success Fee: Is a fee paid to Freenzi Real Estate Auctions by the successful bidder after notification their bid is accepted by the Seller.

  • This fee is to be paid to Freenzi Real Estate Auctions on the day the auction finishes
  • The fee does not form part of the purchase price

Unconditional bid: This applies to Preferential Buyers who bid unconditionally at any Freenzi Online Auction. It means once they bid, and their bid is accepted by the Seller, they have unconditionally committed to becoming the new owner of a property, and will sign the Auction Sale and Purchase Agreement prepared by the Seller’s Solicitor.

Username: The 1st party of the security login to establish an online account through our web site

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