When it comes to selling your home, there’s no one-size-fits-all approach. The best method will depend on your property, the current market, and your personal circumstances. In New Zealand, there are four main methods of sale: auction, negotiation, tender, and deadline sale. Each has its pros and cons, and your real estate agent can guide you on which option is best for your situation.
1. Auction
How it works: Buyers compete against each other in a live bidding environment. The property sells once bidding reaches or exceeds the reserve price.
Why sellers like it:
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Creates urgency and competition.
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Often results in a quick, unconditional (cash) sale.
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Buyers can pay more than expected in the heat of bidding.
Things to consider:
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If there’s only one bidder or the reserve is too high, the property may not sell.
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First-home buyers can be excluded because their finance conditions don’t suit auctions.
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If the property is “passed in,” buyers may use that as leverage to negotiate down.
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A low reserve could mean underselling.
2. Sale by Negotiation
How it works: Buyers make offers (with or without conditions) through the agent, and sellers can counter-offer until a deal is reached. Sometimes the property is listed with a guide price such as “offers over” a certain amount.
Why sellers like it:
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Flexible — you can negotiate directly with buyers.
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Suitable for buyers who can’t bid at auction due to conditions like finance or inspections.
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Can be used if other sales methods don’t succeed.
Things to consider:
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Hard to pick the right starting price.
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Overpricing can scare buyers away.
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Without a fixed deadline, the process can drag out.
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Some buyers assume a negotiated property has already “failed” at auction or tender, prompting lowball offers.
3. Tender
How it works: Buyers submit confidential written offers by a set deadline, usually with a 10% deposit. The seller then has five working days to decide which offer to accept or negotiate further.
Why sellers like it:
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Buyers often put forward their best possible offer.
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Works well for unique, high-value, or hard-to-price properties.
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Provides a clear deadline for decision-making.
Things to consider:
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Some buyers may offer less because they don’t know what others will pay.
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The required deposit can deter buyers.
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If the property doesn’t sell, you may end up in extended negotiations.
4. Deadline Sale
How it works: Similar to a tender, but generally more flexible. Buyers submit offers by a set date, but the seller can accept an offer at any time before the deadline.
Why sellers like it:
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Offers privacy — no public bidding.
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Allows flexibility compared to a formal tender.
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Works well when the property’s value is uncertain.
Things to consider:
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Less urgency than an auction.
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Sales process may take longer.
5. Other Methods of Sale
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Multi-offer process: If several buyers submit offers by negotiation at the same time, the agent runs a fair and transparent process where all buyers must put forward their best offer.
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Mortgagee sale: When a bank sells a property after a mortgage default. These can be attractive to bargain-hunters, but risks include damaged property or missing fixtures.
6. Sole Agency vs Multi-Agency
Most homes in New Zealand are sold under a sole agency agreement, meaning one real estate company exclusively markets the property. Agents often work harder knowing they alone are responsible for the sale.
With a multi-agency agreement, multiple companies can market your home at once. While this might increase exposure, it can create competition between agencies, and if you sell to a buyer introduced by the first agency after switching, you could risk paying double commission.
Final Thoughts
Choosing the right sales method is one of the first — and most important — steps when selling your home. Each method has its advantages and pitfalls, so it’s essential to get advice tailored to your property and your goals.
If you’re considering selling, talk with a local agent who understands both the market conditions and your personal situation. The right advice early on can make all the difference to your selling experience and final result.
📞 Thinking about selling? Call Dan Mitchell at Bayleys Richmond on 021 367 861 for a no-obligation chat about the best way to market your property.
