Frequently Asked Questions

An auction is a public sale conducted by a licensed auctioneer who is authorised to sell the home to the highest bidder on the day, so long as the seller’s reserve price is met. The reserve price is the lowest amount the seller is prepared to accept. In the event that the reserve price is not met, the property will be ‘passed in’ and the sales agent will begin negotiations with the highest bidder in an effort to secure a price both parties are happy with. There is no-cooling off period in an auction: the highest bidder must buy the property subject to the reserve price.

Reasons to sell at auction:

• Selling a house at auction creates urgency. There is an energy and excitement in the room when we host our auctions, usually back-to-back to keep the momentum going. When multiple interested buyers are brought together to bid against one another, the competitive environment can drive up the price.
  
• You set the terms, conditions and deadline. You agree on an undisclosed minimum reserve price, with no pressure to sell if the property fetches a lower than expected bid. There’s also the very real possibility of acquiring a higher price – especially if keen buyer interest promotes competition.
  
• You’ll also attract only genuinely interested, cash-in-hand buyers with no subject-to-sale or subject-to-finance uncertainty. There is even the opportunity to accept offers prior to auction day.

This is the most common method of selling a home in New Zealand. Interested buyers will submit formal offers in writing to the sales consultant who in turn will present these to the seller. The sales consultant will then negotiate directly with the buyer to achieve a price as close to the seller’s as possible.

Reasons to Sell a House by Private Sale:

• This method gives the seller the most control: interested buyers don’t know who or what amount their bidding against, and sellers can take the time to consider offers and negotiate to a price they are happy with, with their preferred buyer.

In a sale by tender, buyers have one chance to submit their best and final offer before a set date and time, at which point the submission period will close. Once the submission period has closed and all offers have been received, the seller and their agent will review the offers together, and the seller will make a decision. If no suitable offer has been submitted, a new tender period may be arranged. This sales method is usually applied to homes listed without a set price.

Reasons to sell a House by Tender:

• You are selling an exclusive or high-end property.
  
• Bidders have one chance to submit their best and final offer allowing you to pick from the cream of the crop, without lengthy negotiations.

Selling a house comes with a number of unavoidable and optional costs, including:

• Converyancing/legal fees.
  
• Agent commission.
  
• Photography and property videos.
  
• Marketing costs.
  
• Renovations and cosmetic repairs.
  
• Styling to sell.
  
• Auction fee.
  
• Home loan exit fees.
  
• Moving costs.

Remember that if you are selling to purchase another house, then you will have all the costs of selling, plus all the costs of buying to consider too. Read more here.

Buyer interest is greatest for your property within the second and third week of its entrance into the market. After this, interest falls away quite dramatically. To maximise this window of opportunity your Harcourts sales consultant will design a marketing programme that peaks during this prime period. Your property will have the highest profile for this vital time.
If you have decided to market your property with a price remember that it must be valued correctly right from the outset to benefit from this initial surge of interest.

Open homes are one of the most effective ways of marketing a property and attracting interest from a wide variety of buyers. Some of the advantages are:

• You have plenty of time to ensure your property is tidy and ready for inspections.
  
• You can control the viewing times.
  
• Open homes can create plenty of activity, even in a slow market.
  
• Interest and activity can trigger urgency with buyers.
  
• The sales consultant’s time is put to best and most effective use. They will have the opportunity to discuss your property with multiple prospective buyers.
  
• Comments from open home visitors make for valuable feedback on price, presentation, sales appeal, etc.

An open listing or general listing is when multiple real estate agencies are enlisted to sell your home. Each agency will market the property in a different way in the hopes of attracting the buyer that will make you an offer you can’t refuse, winning that agency their commission.

By contrast, an exclusive listing is when only one real estate company has been tasked with selling your home.

Although an open listing might sound like a way to reach more buyers, the reality is usually a confounding lack of cohesion. With multiple agendas, approaches and strategies, open listings are ultimately stressful for sellers and cause confusion for buyers.

By making your property listing exclusive, not only do you avoid having to deal with multiple real estate companies and their procedures, but you are able to sidestep any conflicting agendas, and with a tailored marketing plan, you are able to maintain a strong brand grounding for your property that will get buyer attention and hold it.