February 7, 2023

An Introduction to Methods of Selling Property

Before putting your house on the market, it is essential to understand the different methods of selling property. Choosing the most suitable method can significantly impact the success of your sale. In New Zealand, there are several methods of sale that each offer unique benefits. We explore them below.

 

Auction

Selling by auction is one of the most common methods of selling property in New Zealand. During an auction, a property is listed for public sale and is sold to the highest bidder. It’s a fast-paced process that can take place in person or online. The reserved price is not advertised, but sellers can choose to accept an offer before auction day.

Homeowners choose to sell by auction for many reasons. Its appeal lies in the ability to increase buyer competition. The nature of an auction creates a sense of urgency and competitiveness amongst prospective buyers, leading to potentially higher bids. If the property is sold at auction, the purchaser pays the deposit that day and the property is sold unconditionally.

Your success at selling your property on auction day will depend on the competency of your real estate salesperson, the valuation of your property, your location, and the turnout of potential bidders. And as with any method of sale, it will also depend on current market rates and trends. Your salesperson will provide market feedback to help you set a realistic reserved price for your property.

 

Negotiation

In a negotiation sale, the seller puts their property on the market with no fixed price. Prospective buyers can make offers based on what they think the property is worth.

This method of selling property is ideal for sellers uncertain about their property’s market price. Selling by negotiation has no deadline, giving sellers the time to consider various offers before making a final decision.

Negotiation sales are often high profile, offering sellers an excellent opportunity to gain market exposure. This method of sale also tends to draw in a wide range of buyers, providing the seller with various options.

 

Tender

A tender is when prospective buyers make confidential written offers for a property before a specified deadline. The seller has five working days after the deadline closes to accept any offers.

Tenders provide many advantages to sellers. Like an auction, this method of selling property fuels a sense of urgency amongst potential buyers. As there is a deadline for when the tender closes, those interested in the property may feel pushed to act fast and make an offer. However, once the tender closes, the seller does not have to accept the offer and can choose to negotiate.

 

Fixed Price

A fixed-price sale is when the seller lists a property at an asking price to both conditional and non-conditional buyers. This method of selling property is a great option if you only want to attract buyers willing to meet your asking price. However, while this method has its advantages, it also has some limitations.

When you sell your home at a fixed price, you risk setting a price that is too high or too low. This method may lead you to either undersell your property or not sell it at all. And since there is no set deadline, like in an auction or tender, it removes the time pressure from potential buyers. If there is no sense of urgency amongst your target market, you may wait a long time until your property is sold. However, it’s certainly not impossible. Like any method of sale, selling your home at a fixed price can be a viable strategy once you have an accomplished salesperson by your side.

 

Sell Your Property with Team Sue Hall

Want to sell your property but not sure which method of sale is best for you? Team Sue Hall is a licensed real estate salesperson in Hamilton with years of experience selling a range of properties. Get in touch with us today for expert tips on selling your home.

Looking to Sell or Buy a Property?

Looking for a licensed real estate salesperson to help you buy or sell a home? Get in touch with Team Sue Hall today and we’ll help you make the most of your investment!