Property Insiders Greg Dennerly Blog Banner May2024

What sales method should I choose?


  • 6th May 2024

Choosing an effective property sales method

Greg Dennerly, Principal and Owner of NZSIR Auckland Eastern Bays, provides expert insight into the range of sales methods and what they mean if you're getting ready to sell.  

There's no one-size-fits-all approach to selling. What really matters is tailoring your strategy to fit your unique situation.

Every seller has different goals and circumstances, so it's crucial to find a sales method that suits you. 

Whether you're leaning towards an auction, tender, or negotiation, a skilled agent will walk you through the options to help you achieve the best possible sale price. And remember, adaptability is key in today’s fast-changing market so be ready to change tact if the initial strategy doesn't deliver the desired outcome. 

Selling your property by Auction 

The auction method has been extremely popular recently, with good reason. When a property is offered for sale by auction—subject to a reserve price—it invariably creates an environment conducive to competitive bidding and elevating the final sales result. Certainly something that vendors have been eager to achieve over recent months. Selling by auction often means you don't have the long negotiation periods encountered with alternative selling strategies, allowing for a more focused marketing campaign.  

Going with an on-site or in-room auction is a question we are often asked. Here at the NZSIR Eastern Bays office, we prefer to hold auctions on-site at the property. On-site auctions create a more personal and relaxed atmosphere for sellers and buyers. It’s a strategy that means more work for both the agent and the auctioneer, but holding the auction in the space that someone could call home creates a buzz and often leads to an optimal outcome.  

I'm aware that the idea of an auction is daunting for many. If an auction is likely to cause a few grey hairs, we would offer an alternative, like a set sale date or sale by negotiation, which offers a more discreet approach and a calmer and extended selling process. 

Selling your property by Price by Negotiation 

Selling a property by price by negotiation is often used when a vendor would prefer not to put a value on a property or for unique properties with few comparable sales. Instead of a fixed price, a guide is provided to prospective buyers, with the agent facilitating negotiations. This method is also beneficial if a vendor has an unrealistically high price in mind for their property. This process is a good way to gauge what the market is willing to pay. 

Selling with a campaign of Enquiries Over 

With this method, the property is listed with a price that indicates the minimum amount the seller is willing to consider. Interested buyers are encouraged to make offers above this price, and negotiations ensue to reach a mutually agreeable sale price. This is not a method we often recommend, preferring a ‘by negotiation’ strategy where a minimum price is not the focus. It could be considered when a vendor is firm about the price they are willing to accept and we specifically target buyers in that range. 

Selling your property by Tender or Deadline Sale 

Selling a property by tender, deadline sale, or set sale are similar strategies, which differ slightly in formality. Tender processes offer confidentiality and competitive bidding without fixed price discussions. The deadline can help create urgency and competition among buyers. Offers can be conditional, unconditional, and, in some cases, include trade elements. The modern version of the tender is the deadline sale, which allows early offers that, if acceptable, bring the sale forward to let others participate. 

With New Zealand Sotheby's International Realty's global reach, we're well placed to carry out international tenders, particularly for those unique properties like waterfront residences, lodges, and wineries, which are challenging to price. These properties benefit greatly from exposure through luxury networks, making the tender method increasingly popular in the high-end market segment.  

Selling your property with a Set Price 

Marketing your property with a Set Price or Fixed Price is a great strategy for those who are serious about selling and want to ensure offers from buyers who can afford to purchase at that level. An advantage of this method is that it allows buyers who are conditional on selling or require bank funding to prepare before making an offer. A downside of this approach is that buyers, by nature, tend to negotiate downwards, which may prevent you from achieving a premium price. Conversely if the property is overpriced, it could take some time to sell or not sell at all with this method. 

Selling your property by Expressions of Interest 

The Expressions Of Interest method is not as commonly used as other methods. This strategy doesn't specify a price, focusing instead on the property's features and benefits. Potential buyers are invited to submit their interest. This method is a good way to test the waters, gauging buyer interest without setting firm price expectations. It's particularly useful for properties with uncertain market value, such as large farms, or when sellers or agents suspect price expectations exceed market realities. The process is a bit like fishing to see if there are buyers out there before committing to a sales campaign. 

Choosing the right sales method in today's market 

Selecting a sales strategy that matches your property's unique features and the market's current state is essential for success. High-value properties—like a recently listed waterfront estate in Karaka expected to fetch $6 to $7 million—are best marketed through an international tender to reach the right buyer pool who would be cash-ready at this level. While homes valued between $1 million to $3 million thrive in an auction setting that encourages competitive bidding.  

Despite recent market fluctuations, we're now witnessing the green shoots of resurgence, and the market is bubbling along nicely. There is activity out there indicating that if an auction doesn't result in a sale this shouldn’t be seen as a setback. The process has been useful to determine the property's value and identify other potential methods for finalising the deal. 

Choosing the right method of selling your property can be as simple as selecting the right agency to work with. Our NZSIR team, with deep industry expertise, offers guidance and advice on the best sales strategy for your property. Our tailored advice and professionalism ensure a stress-free process and the flexibility to change tact if needed. 

Greg Dennerly

With a winning combination of experience, long-standing connections and a sincere, down-to-earth personality, Greg is renowned for achieving the best possible outcome. Along with wife Lisa-Jane (L-J), Greg owns and manages our Eastern Bays office with business acumen and insight, honesty and integrity.

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