When it comes to buying and selling, there’s several methods available to us here in New Zealand. It is important that you understand the particular process for the property you are buying or selling. Practices also vary between agencies so make sure you confirm details with them.
Auction
An auction is an open process where buyers bid against one another to purchase a property.
Advantages
High profile – large exposure to the marketplace
Unconditional agreement on the fall of the hammer
Deadline for buyers to act
No price limitations
Creates open transparent competition between buyers
Can sell before at, or after auction day
An expert auction team offered at no extra cost
You’re in control. You set the terms, conditions, reserve price and settlement date
We have one of the countries top auctioneers
Disadvantages
Conditional buyers can’t bid
Price by Negotiation
There are several different ways of selling a property by negotiation.
Advantages
Large exposure to the marketplace
No price limitations
You can take your time to consider offers and wait for the right price and conditions
You can negotiate to secure a deal that suits both parties
Opportunity for conditional and unconditional interest
Disadvantages
Removes any sense of urgency amongst buyers with no fixed date
Offers may have conditions included which will extend the sale period
Conditional offers have the possibility of not satisfying
Tender
When a property is being sold by tender, prospective buyers submit confidential written offers for the property to the agent.
Advantages
High profile with large exposure to marketplace
Conditional and unconditional buyers
A set deadline for buyers to act
No price limitations
You have 5 working days from the closing date to consider the offers
Negotiations can take place after the tender closes
You’re in control. You set the terms, conditions, and settlement date
Disadvantages
Some buyers are wary of this process as their offer is locked in for up to 5 working days while you can decide
There is no transparency between buyers as you don’t have open competition
Conditional agreements may extend the sale period and have the opportunity of not satisfying
You can’t change the Tender date
Deadline Sale
A deadline sale is a sales method where a property is marketed for a set period with an advertised end date.
Advantages
High profile – large exposure to marketplace
Conditional and unconditional buyers
A set deadline for buyers to act
No price limitations
You can choose to sell before or after the deadline date
You’re in control. You set the terms, conditions, reserve price and settlement date
On a standard sale and purchase agreement
Disadvantages
There is no transparency between buyers as you don’t have open competition
Conditional agreements may extend the sale period and have the opportunity of not satisfying
