Market Strategies

There is more than one way to sell a home. You may want the clarity of an asking price, the structure of a deadline or the open competition of an auction. We explain how each option works and recommend an approach suited to your property, your timing and the buyers it is likely to attract.

Advertised price

The property is marketed with an asking price. Buyers can decide whether to offer at, below or above that figure, and the seller can negotiate the price and terms. This method provides clarity but the initial price must be carefully considered.

An asking price helps buyers judge whether the home fits their budget. Set it too high and some may pass over the listing; set it too low and you may weaken your negotiating position. Review enquiry and comparable sales with your salesperson as the campaign develops.

Price by negotiation

No asking price is advertised. Interested buyers submit offers based on their view of market value and negotiate with the seller. This can suit property where an exact market response is difficult to predict, but the campaign still needs a clear strategy and active buyer follow-up.

This gives room to discuss different prices and terms, but some buyers may be uncertain about whether they can afford the property. Ask how your salesperson will explain relevant market evidence and follow up with interested buyers.

Deadline sale

The property is marketed without an advertised price and buyers are invited to submit offers by a stated date. The campaign creates a defined period for buyers to act. The seller may be able to consider an offer before the deadline if the marketing and agency documentation allows it, so the process should be explained clearly to all interested parties.

A deadline gives buyers time to organise finance and checks, and can allow conditional offers. It does not guarantee competing offers or a sale. Compare the conditions, deposit and settlement date as well as the price, with your solicitor’s advice.

Tender

Buyers submit confidential written tenders using the prescribed tender documents by the closing date. The seller may accept, reject or negotiate with a tender in accordance with those documents. Tender can provide a structured process for property with multiple value considerations or where confidentiality is important.

Buyers need enough time to understand the documents and prepare their terms. The strongest offer may involve trade-offs between price, conditions and timing; you are not required to accept an offer simply because it is the highest.

Auction

Auction creates a public, time-bound process in which buyers compete through bidding. The property is sold when bidding meets the reserve and the auctioneer completes the sale. Auction purchases are normally unconditional, so buyers must complete their due diligence before bidding.

The public bidding process can make competing interest visible, but buyers who still need finance approval or other conditions may be unable to bid. Discuss the likely buyer group, preparation time and campaign costs before choosing this method. If the property does not sell at auction, your salesperson can discuss negotiation with interested buyers or a change to the marketing approach. A passed-in auction does not guarantee a later sale.

Learn more through our buying at auction guide and current Bream Bay auction listings.

Choosing the right approach

We consider:

• The property’s location, features and likely buyer groups
• The level of comparable sales evidence
• Current competing listings and market momentum
• Whether timing, transparency or confidentiality is particularly important
• The owner’s preferred settlement and circumstances
• The marketing needed to create meaningful competition

Independent consumer information about methods of sale is available from settled.govt.nz.

Request a property appraisal or call Ray White Bream Bay on 09 433 0334 to discuss a strategy for your property.