Thinking about selling your property? Choosing the right method of sale will be fundamental to your success. There are several different ways to sell property in New Zealand: selling by fixed price, through negotiation, via an auction, or by tender. Each method offers its own unique benefits. As a professional and reliable real estate agent in New Zealand, I can help you find the best method for selling your property. Here’s what you need to know about the different methods of selling property.
Methods of Selling Property
Selling a property at a fixed price is a simple and straightforward process. In this method of sale, you are advertising your property for sale at a definite price to conditional and non-conditional buyers. There is no time limit when selling property at a fixed price — you can accept an offer at any time if the buyer meets your asking price. Choosing the right price for the market will be critical; the last thing you want to do is sell your home for less than it is worth. To find out what your property is worth, get a property valuation today.
When a property is sold by negotiation, the seller advertises a specified asking price or price range for their property that can be negotiated with potential buyers. This method provides the seller with much more flexibility and control than a fixed price sale, as you can take the time to consider different offers and negotiate the price you want. This method of sale is usually high-profile, which can increase your exposure to the marketplace.
An auction is one of the most effective and popular methods for selling property in New Zealand. This is when the property is sold to the buyer who has secured the highest bid. A reserve price — which is the lowest price the seller is willing to accept — must be set before the auction begins. This price is confidential and will not be revealed to the public. If the buyers do not meet the reserve price, the property won’t be sold.
As there are no price limitations at an auction, it allows the seller to get the highest possible price for their home. The nature of an auction is also very fast-paced and competitive, which can help to create a sense of urgency and excitement between potential buyers — leading to higher bids.
There is also an option for the seller to accept an offer pre-auction. If you accept a pre-auction offer and the purchase agreement is signed, the auction may be cancelled.
Selling by tender is when there is a set deadline for prospective buyers to make an offer on a property. This set deadline can help to fuel urgency amongst prospective buyers — which could lead to higher price offerings. There is also no set price advertised, which enables the seller to receive offers with no price limitations. Once the deadline has reached, the seller has 5 working days to decide on an offer. The seller may negotiate with the buyer before the final agreement is signed.