What’s the Best Method of Sale to Generate Competition
There are several methods of selling property in New Zealand. It is important that you understand the process for the property you are selling.
Auction, Tender, Deadline sale, Advertised price or By Negotiation are the most common methods of selling property in New Zealand. Offers for these sale methods will be written on the standard sale and purchase agreement.
AUCTION
Advantages
- High profile — large exposure to marketplace
- Regular market feedback from salesperson
- Unconditional agreement on the fall of hammer
- Deadline for buyers to act
- No price limitations
- Can sell before, at, or after auction day
- Open, transparent competition
- You’re in You set the terms, conditions, reserve price and settlement date
Disadvantages
- Conditional buyers can’t bid
Tender
Advantages
- High profile — large exposure to marketplace
- Regular market feedback from salesperson
- Conditional and unconditional buyers can look
- A set deadline for buyers to act
- No price limitations
- You can choose to sell before or after the tender date
- You have five working days from the closing date to decide if you will accept the offer
- Negotiations can take place after the tender
- You’re in You set the terms, conditions and settlement date
Disadvantages
- Conditional buyers think they can’t submit a tender
- Some buyers are wary of this process as their offer is locked-in for up to five working days while you make a decision, and there is no transparency of what another person may offer
- Conditional agreements may extend the sale date
Deadline Sale
Advantages
- High profile — large exposure to marketplace
- No price limitations
- You can negotiate until you get a deal that suits you
- Regular market feedback from salesperson
Disadvantages
- Offers may have conditions included which will extend the sale period
- Conditional agreements may extend the sale date
- Some buyers may be wary of this process as it is not well understood
Fixed Price
Advantages
- High profile — large exposure to marketplace
- Buyers have a clear indication on your price expectation
- Both conditional and unconditional buyers to purchase your property
- Easier for the buyer to negotiate a sale
- Helps to ensure that your property only attracts buyers who are willing to offer the price that you are asking
- Regular market feedback from salesperson
Disadvantages
- Forces you to set your maximum price
- Does not give the chance to test the market and determine the level of interest from buyers
- Removes any sense of urgency among buyers because there is no fixed sale date
- In a changing market there is no accuracy in pricing a property. A badly priced property has the potential to be undersold if underpriced, or adversely remain on the market whilst other properties sell if overpriced
Negotiation
Advantages
- High profile — large exposure to marketplace
- No price limitations
- You can take your time to consider offers and wait for the right price
- You can negotiate until you get a deal that suits you
- Regular market feedback from salesperson
Disadvantages
- Removes any sense of urgency among buyers because there is no fixed sale date
- Offers may have conditions included which will extend the sale period
We will work with you and help you decide the best option for your property.
My Motto is Under-Promise Over-Deliver
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