NICK COWDY / Residential Sales Consultant, Principal Agent
If you have considered selling your property, one of the first questions you’ll likely face is how to sell it. In New Zealand, the most popular methods of sale are Auction, Deadline Sale, and Negotiation. Choosing the right method is crucial to achieving a successful sale, and real estate agents can provide valuable guidance in making this decision.
At Cowdy, we believe in a bespoke approach. We get to know our vendors and their homes intimately, allowing us to select the best method to attract the right buyers. Our agents meticulously learn about your home’s features, identify key selling points, and address potential issues and solutions to tailor a marketing campaign that resonates with the target market. This personalised approach sets us apart, ensuring that our strategies are specifically designed for each of our clients, rather than relying on a generic formula.
Auction
An auction is a high-profile marketing strategy where the seller sets the terms, conditions, and auction date. This method creates a sense of urgency and competition as buyers bid against each other, often driving the price up. Auctions are conducted on a cash and unconditional basis, making them appealing for sellers seeking a swift and definite sale.
The auction’s transparent nature fosters a competitive environment that can lead to premium prices. Auctions are particularly suitable for unique properties with distinctive features and emotional value. If the property doesn’t sell during the auction, it remains on the market, with further negotiations typically following shortly after.
Pros:
- Creates urgency and competition.
- Often results in a quick, unconditional sale.
- Can achieve a higher sale price due to competitive bidding.
Cons:
- May not sell if there’s only one bidder or the reserve price is too high.
- Can be inaccessible for first-home buyers requiring financing conditions.
- If the reserve is too low, the property might sell for less than expected.
Tender
A less common method of sale, Tenders involve buyers submitting confidential written offers to the agent before a specified end date. Unlike a deadline sale, all offers in a tender process are presented to the seller simultaneously. The seller typically has up to five working days to decide which tender to accept, considering both the price and any attached conditions.
Once tenders are submitted, they are kept secure until the deadline. After the deadline, the offers are opened with the vendor and a branch manager or supervisor present. The vendor can accept an offer, reject all offers, or negotiate further. This process provides the vendor with time to consider offers, make enquiries, and negotiate if necessary.
Pros:
- Provides a range of offers to choose from.
- Offers confidentiality in the bidding process.
- Allows for conditional offers.
Cons:
- Lacks flexibility to accept early offers.
- Buyers may feel less urgency compared to auctions.
- The process can be longer than auctions.
Deadline Sale
A Deadline Sale, also known as a Deadline Private Treaty, combines aspects of auctions and tenders, offering flexibility and confidentiality. In this method, the property is marketed without a price, with buyers submitting offers by a specified deadline. The seller can accept any offer at any time, providing maximum flexibility.
Deadline sales create a silent auction atmosphere, where buyers submit confidential offers. This method is beneficial when the property’s value is uncertain, allowing the market to determine the price.
Pros:
- Combines flexibility with a competitive edge.
- Confidential offers encourage serious buyers.
- Seller can accept offers before the deadline.
Cons:
- Less urgency compared to auctions.
- Longer sale process compared to auctions.
Negotiation
Selling by negotiation offers flexibility, allowing the seller to accept offers at any time without a set deadline. This method involves setting an asking price or price range, with buyers making offers based on their valuation of the property. The negotiation process can include conditions, providing room for both parties to reach a mutually agreeable deal.
Properties marketed with a price or price range often attract buyers who prefer clarity. However, without the urgency of an auction or deadline, the sale process can be more prolonged.
Pros:
- Flexible timeline for receiving offers.
- Allows for conditional offers and negotiations.
- Provides clarity with a set price or range.
Cons:
- Challenging to set the right asking price.
- Lack of urgency can lengthen the sale process.
- Buyers may perceive the property as having failed to sell by other methods, leading to lower offers.
Choosing the right method of sale depends on your property’s unique characteristics and your personal circumstances. At Cowdy, our experienced agents can help you navigate this decision, providing a no-obligation appraisal and expert advice to ensure you achieve the best possible result.
If you’re thinking of selling, reach out to one of our agents today. We’re here to guide you through every step of the process, from selecting the best sale method to closing the deal.
