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METHODS OF SALE

When it comes to selling your property, there are several methods available to us here in New Zealand. There are advantages and disadvantages to each method of sale, but most importantly it is essential that you understand the process for the property you are buying or selling. These practices can vary between agencies so make sure you confirm details with them, or if you have any questions please don't hesitate to get in touch. There is no one method of sale that is right for all properties, the recommendation would change depending on different factors such as target audience, the current market, property type & location. 

To best understand what is best for your property get in touch today to request a free appraisal of your property. 

Auction

Auction is one of the strongest processes a seller can use to ensure an unconditional sale of their property. It is an open process where buyers bid against one another to purchase a property. When the hammer falls the winning bidder has to be in an unconditional position, putting the onus on the buyer to do their due diligence before the auction. When selling your property, the competitive sales environment means there is no price limitation for your property & even in a slower market, the auction process flushes the cash buyers to the front of the queue to get your property sold unconditionally.

Download our complete auction guide

Advantages

  • High Profile - Large exposure to the property marketplace. 
  • Unconditional - When the hammer falls the buyer must be in an unconditional position.
  • Deadline - The auction date creates a deadline for buyers to act.  
  • Premium Pricing - If a premium price is going to be achieved for your property then it will happen at auction. 
  • Transparent Process - The auction process is a transparent, but competitive environment between buyers. 
  • Vendor Flexibility - Your property can still sell before auction day. Pre-auction offers at an acceptable level mean that auctions can move forwards. 
  • Reserve Pricing - Going to auction doesn't mean you risk selling for less! As the vendor, you set a reserve price which must be met for the property to come on the market. 
  • Expert Auction Team - Here at Harcourts Pukekohe we have an excellent auction team, with a great success rate of getting your property sold at a premium price. 
  • You're In Control - You the vendor control the terms & conditions, settlement timeframe & also reserve pricing. 

Disadvantages

  • Only cash buyers can bid, those with conditional offers cannot make their offer until after the Auction if the property did not sell. Although, those with conditional offers will often act fast should they get their opportunity following the auction day. 

For more insights on Auctions, check out this video from Shayne Cortese below, who shares his expert insights into the benefits of Auction in a slower market. 


  • Sale by Negotiation
Selling your property by negotiation is a great option if the price range for your property is difficult to gauge because it is unique or there is a lot of movement in the market. In this sale method, no end date is set and offers are made based on what the buyer feels the property is worth. From a vendor's perspective, you are not setting a price ceiling on what buyers might have actually offered for your property. 

Advantages

  • High Profile - Large exposure to the property marketplace. 
  • No Price Limitations - Without the set price, buyers offer what they think it might be worth meaning there is no ceiling of where they will place their max value.   
  • You're In Control - Take your time to consider offers that come in and wait for the right price and conditions You can also negotiate to secure a deal that suits both parties. 
  • Opportunity - Conditional and unconditional interest from buyers are all allowed to approach with their offers.

Disadvantages

  • Less Urgency - Without a clear end date buyers are less urgent, with no deadline to work towards. 
  • Conditions - The offers received from buyers may have conditions included which will extend the sale period. 
  • Conditional Offers - Do have the possibility of not satisfying their conditions and pulling out of a deal before unconditional. 

Tender

Selling a house by tender is another form of 'no price marketing' to sell your property. It's a process designed to foster buyer competition but it’s important to understand exactly what a tender process involves for both buyers and sellers, what the pros and cons are and whether it’s a good fit for you. Tenders can be a good choice if your property has unique features that make it difficult to price, or if you don’t want to reveal your expected price.

When a house is being sold by tender, prospective buyers submit their written offers before the deadline date and time and the tenders are opened after that. Like an auction, but without the public day, the main difference is that buyers do not know what the other is bidding. Unlike auctions, tenders can include conditional offers, but miss the competitive element of auction. After the tender deadline, the vendor selects the offer they want to accept, based on the price offered and the attractiveness of conditions and settlement date. 

Advantages

  • High Profile - Large exposure to the marketplace.
  • No Price Limitations - Without the set price, buyers offer what they think it might be worth meaning there is no ceiling of where they will place their max value.   
  • You're In Control - Take your time to consider offers that come in and wait for the right price and conditions. You can also negotiate to secure a deal that suits both parties.
  • Opportunity - Conditional and unconditional interest from buyers are all allowed to approach with their offers.
  • Deadlines - There is a set deadline creating urgency for buyers to act. 
  • Flexibility - You have 5 working days from the closing date to consider the tenders received, with negotiations able to take place after the tender has closed. 
  • You're in control - You the vendor set the terms, and deadlines, and choose the conditions and settlement date. 
  • Can Work In Your Favour - When there is a lack of cash buyers in the market, the blind offer process over an extended period, forces buyers to put their best offer forwards or risk losing out, whilst also allowing all potential buyers to take part and become invested in this process. 

Disadvantages

  • Set In Stone - You cannot change the date of the tender once it has started. 
  • Buyer Waryness - Some buyers are wary of the process, their offer becomes locked in for up to 5 working days whilst you the vendor decide.
  • Lack Of Transparency - There is no transparency between buyers, so can make the competition of their offers less open. 
  • Potential For Extended Sales Period - Buyers' conditions could extend the sale period, with the risk of conditions not satisfying. 

Deadline Treaty

Similar to the tender process, a deadline sale or deadline private treaty is a property offered for sale with no fixed price. Prospective purchasers are required to submit their offers by a deadline date. Unlike the tender process, vendors usually reserve the right to accept an offer and sell prior to the deadline or when the deadline comes around all offers are considered together by the vendor. The vendor is not committed to selling by the deadline, but the expectation of the process is that the best offer will either be accepted or that further negotiations will take place between the person or persons making the best offer.

Advantages

  • High Profile - Large exposure to the marketplace.
  • No Price Limitations - Without the set price, buyers offer what they think it might be worth meaning there is no ceiling of where they will place their max value.
  • You're In Control - Take your time to consider offers that come in and wait for the right price and conditions. You can also negotiate to secure a deal that suits both parties.
  • Opportunity - Conditional and unconditional interest from buyers are all allowed to approach with their offers.
  • Deadlines - There is a set deadline creating urgency for buyers to act.
  • Flexibility - You do not have to wait for the deadline to negotiate with a buyer if an acceptable offer comes in. 
  • You're in control - You the vendor set the terms, and deadlines, and choose the conditions and settlement date.
  • Standard Process - Using a standard Sale & Purchase agreement is simpler for both parties to understand. 
  • Can Work In Your Favour - When there is a lack of cash buyers in the market, the blind offer process over an extended period, forces buyers to put their best offer forwards or risk losing out, whilst also allowing all potential buyers to take part and become invested in this process. 

Disadvantages

  • Lack Of Transparency - There is no transparency between buyers, so can make the competition of their offers less open.
  • Potential For Extended Sales Period - Buyers' conditions could extend the sale period, with the risk of conditions not satisfying. 

Selling With A Price

Arguably, the simplest method of sale to understand for both vendors and buyers. This method of sale would typically be plan B but can vary based on the circumstances of the vendor and the urgency needed for sale. Human behaviour around price is simple, if a price is set the only route in negotiations is down, with an upper limit already in place. With no price marketing, completion, or fear of missing out it is possible to negotiate up, achieving a premium for your property. 

Advantages

  • Buyer Transparency - Buyers (especially first-home buyers) are more attracted to the property with a clear expectation of how much this house might cost. 
  • Pricing Strategy - Sharp pricing on a property can lead to a quick sale, if speed is important, a sharp price can shift the property quickly. 
  • Available Buyers - All types of buyers are able to make their offers, conditional & cash buyers can all offer for your property. 

Disadvantages

  • Sale Price - Unrealistic expectations or over-valued properties, may not attract buyers as the price might scare off potential viewers of the property. 
  • Premiums - By setting an upper limit, the opportunity to sell your property for a premium price does not exist. 
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