Choosing the Type of Property Sale
Finding the most effective sales method for your property
Selecting the right sale method for your property can significantly influence the success of your transaction. In New Zealand, vendors have several options at their disposal, each with its own set of advantages and disadvantages. Let’s explore these methods to help you determine which best suits your property sale.
Starting with a displayed price is straightforward – you list your property with the price you hope to achieve. Clarity: Buyers know immediately if the property is within their budget. Simplicity: It's easy for both buyers and sellers to understand. Control: Sellers can set a price they’re comfortable with. Limitation: Setting a high price may deter potential buyers, while a low price may limit your earnings. Negotiation: If the market doesn’t match your expectations, you may need to adjust the price. Auctions create a competitive atmosphere that can result in a higher sale price. Urgency: The set auction date encourages potential buyers to act quickly. Transparency: Bidding is open and public, which can drive up the final price. No Cooling Off: Sales are unconditional, meaning less chance of the deal falling through. Pressure: The intense environment might deter some buyers. Uncertainty: There’s no guarantee that the property will sell on auction day. Costs: Marketing costs for auctions are typically higher. Private treaty sales involve negotiating directly with interested buyers until an agreement is reached. Flexibility: Negotiations can unfold to suit both parties' timelines and conditions. Less Intimidating: A more relaxed approach may attract a broader range of buyers. Time-consuming: Negotiations can be drawn out over an extended period. Less Competition: Without multiple buyers vying simultaneously, you might not achieve the best market price. No Urgency or Deadline: Without any logical date end time, this could drag on and not give the urgency to create a multi-offer scenario. Selling by tender invites buyers to submit their best offer by a specific date. Discretion: Offers are private, encouraging buyers to put forward their highest bid without knowing what others are willing to pay. Flexibility: You can set terms and conditions that suit your situation. Complexity: Evaluating numerous different offers can be challenging. Uncertainty: Like auctions, there's no guarantee of sale by the tender closing date. A deadline sale sets a date by which all offers must be received without a publicised asking price. Attractiveness: Without a listed price, you might attract more interest and potentially higher offers. Auction-like Urgency: The deadline creates pressure similar to an auction but without the public bidding process. Risk of Underpricing: Buyers might submit lower offers if they don't have competing bids to gauge against. Potential for Prolongation: If acceptable offers aren’t received by the deadline, you may need to extend or change your strategy.
Pros of displayed price:
Cons of displayed price:
Pros of an auction:
Cons of an auction:
Pros of private treaty sales:
Cons of private treaty sales:
Pros of sale by tender:
Cons of sale by tender:
Pros of deadline sale:
Cons of deadline sale:
When considering these options for selling property in New Zealand, it’s essential to weigh up these pros and cons in relation to your unique circumstances. Consider how quickly you need to sell, how much control you want over pricing and how much risk you’re willing to accept regarding the final sale price.
