Property Sale Methods

Choosing a way to sell

There is no single sale method that suits every property or seller. The right approach depends on the property, the information available to buyers, current competition, your timing and the conditions you need. Ask your salesperson to explain the available methods, their costs and process, and why they recommend one for your situation. You decide whether to proceed and which method to use.

Auction

At auction, buyers bid publicly on a set date. The seller sets a reserve with the auctioneer before the auction; the property does not sell under the hammer unless the reserve is met or the seller otherwise agrees. A successful auction sale is usually unconditional, so buyers should complete their due diligence before bidding. If the property is passed in, the seller can consider whether to negotiate with an interested buyer or take another approach. Ask how the auction will work, what the reserve process involves, what happens if the property is passed in and what marketing costs apply.

Tender

For a tender, buyers submit written offers by a stated closing date under the tender documents. The vendor considers the offers after the deadline, subject to the stated process. A tender may allow a buyer to include conditions, and the vendor may choose to accept an offer, reject offers or negotiate. The tender document controls the process, including whether an offer can be considered before the deadline. Ask whether the property is being sold “unless sold prior”, how offers will be presented, and what the closing process requires.

Deadline sale

A deadline sale sets a date by which offers are invited. The seller may decide to consider offers before the deadline if the marketing states this, or may choose to wait and consider offers together. Buyers may be able to include conditions in an offer. The deadline does not require the seller to accept an offer or the highest offer. Confirm how early offers will be handled, whether the deadline can change and how interested buyers will be kept informed.

Advertised price or negotiation

A property may be advertised with a fixed price, a price guide or wording such as Buyer Enquiry Over. Buyers can make an offer, and the seller may negotiate or accept an offer at a time that suits the stated process. A published guide should be realistic and should not be mistaken for an appraisal or a promise that the seller will accept that amount. Ask what the guide means, what conditions an offer can include and how the seller will consider other written offers.

Compare your options

Before choosing, discuss:

• the evidence for the recommended method and likely buyer groups;
• how the method handles conditional and unconditional offers;
• the key dates, what happens if no acceptable offer is received and whether early offers may be considered;
• marketing, auctioneer or other additional costs and when they are payable;
• what information buyers should check before making an offer; and
• what updates you will receive about enquiries, viewings and feedback.

Do not choose a method based on a promised premium, fixed campaign length or claimed local clearance rate unless the evidence is current, relevant and independently verifiable. Sale outcomes depend on the property, market and terms at the time.

Get independent advice

A sale method affects how offers are made and considered, but the contract and sale documents contain the exact terms. Read them carefully and ask your lawyer or conveyancer for advice before signing. Buyers should also get appropriate legal, finance, building and insurance advice before making an offer or bidding. The Real Estate Authority’s auction guidance and guidance on tenders, deadlines and negotiation explain important process differences.

If you are considering selling in Nelson or Tasman, request an appraisal and ask Ray White Richmond to explain the options for your property. An appraisal is an agent’s opinion, not a registered valuation or a guarantee of price or sale outcome. You can also read the local selling guide and see recent sold examples; individual listings and sales are not a substitute for an appraisal.