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Date: 21st Jul 2020

What are the different ways to sell a house in NZ?

Interested in selling a property? Our comprehensive guide outlines the various ways to sell your home when the time comes. Before you decide on the best method for your house, don’t forget to request your free appraisal with Tremains so you can get the best price.

Property auction

Selling a property at auction is an open process where buyers bid against each other to purchase the property. A solid marketing campaign and regular open homes set the stage for a successful auction. This sales method is particularly effective for homes that are challenging to value due to their unique features.

Prior to the auction date, you set a reserve price (the minimum price you are willing to accept), and once this price is reached, the highest bidder becomes the successful buyer.

The benefits of selling at auction:

• All bidders are cash buyers – there are no conditions on the offers, and once the auctioneer’s hammer drops, sold means sold!
• It creates a sense of urgency as there is a fixed period of time to market your property.
• Competition is heightened, which can lead to a premium price, plus there is no ceiling on the price.
• You can still consider pre-auction offers if your auction terms and conditions allow for it.
• Your sales consultant will know how many interested buyers will be in the room, as buyers must register.

How the bidding process works:

• Once the bidding passes the reserve price, your property is on the market and will be sold to the highest bidder.
• If the bidding does not reach the seller’s reserve price, the auctioneer will pause the auction and determine what you would like to do next.
• If bidding is close to the reserve price but not quite there, you can agree to put the property on the market, in which case, the highest price buys the property; or
• You can advise the auctioneer that you will not sell at that price, and the property gets “passed in.” The auctioneer will announce that the auction is finished when the reserve price has not been reached.
• At Tremains, we recommend negotiating with the person who made the highest bid. This still gives you the opportunity to sell the property on the day. Note that it may not be an unconditional offer.
• If the property is not sold, your salesperson will discuss other options for marketing your property.

Tender

A tender is a method where an interested party submits a confidential written offer for your property by a set date. Offers can be accepted prior to the advertised tender deadline, provided this is clearly stated in the advertisement. 

The benefits of selling by tender:

• It creates a sense of urgency as there is a fixed period of time for marketing the property and holding open homes.
• Competition is heightened, which can result in a premium price.
• All offers are confidential.
• You have the option to accept an offer before the tender date, provided this is clearly stated in the marketing material.
• You have time to consider the offers before you make a decision.
• There is no ceiling on the price, no restrictions on advertising a price.
• Great for properties that have a special something about them or where they are difficult to value.

A specialised tender document states the offer and is provided by you or your solicitor. If an offer is made prior to the tender close date, it is drawn up on a standard Sale and Purchase Agreement.

Price by negotiation

Selling a property through negotiation is a good option when determining the market value of a property is challenging.

This process involves prospective buyers making an offer based on their assessment of the property's value. Buyers do their own research to make this judgment, and then you can negotiate with them on price through the real estate agent.

The benefits of selling by negotiation:

• It allows you to set the price by comparing “like” properties
• It creates an opportunity to achieve the best price for your property.
• There is no time pressure on potential buyers.
• It can be utilised without a price indication.

Negotiating range

You can market a property by providing a pricing guide or indicating the price range you expect to achieve for your property.

The benefits of selling with a negotiating range:

• It allows your home to be marketed to a wide range of buyers
• Gives you the flexibility to negotiate price within a wider range
• Helps your property appear extremely price competitive

Fixed price

Properties can be advertised with a price. This selling method still allows the buyer to negotiate with you on price.

The benefits of selling with a fixed price:

• Makes buyers most comfortable knowing the seller’s expectations.
• Recent market statistics help to set the price

Deadline Sale

A deadline sale is similar to a tender in that buyers submit confidential written offers for your property by a set date. Offers can be accepted prior to the set deadline, but this must be clearly stated in the advertisement.

There is no reserve price, but a price guide may be available. Unlike a tender sale, buyers submit their offer on a standard Sale and Purchase Agreement within the vendor’s set period.

The benefits of selling by deadline sale:

• Marketing the property as a fast-paced public sale creates a sense of urgency.
• Competition is heightened by the time limit, which can lead to a premium price.
• All offers are confidential.
• You have the option to accept an offer before the deadline date, provided this is clearly stated in the marketing material.
• You have time to consider the offers before making a decision, ensuring you choose the best offer.
• There is no ceiling on the price, no restrictions on advertising a price.
• Great for properties that have a special something about them or where they are difficult to value.
• Real estate agents build an effective marketing campaign and run regular open homes.

The best way to sell your house is with a Tremains real estate agent

Selling a property doesn’t come with a one-size-fits-all solution. With so many different ways to sell houses, it’s recommended that you consult a professional real estate agent for advice. At Tremains, we are committed to helping our clients achieve their sales goals.

To learn more about how to sell your property and the method that best suits you, contact us and speak to a Tremains Sales Consultant today.