Sale with a price - Private Treaty
This is simply advertising your property with the price that you have agreed with your agent. The seller can consider an offer at any time during the process.
Deadline Sale (Deadline Treaty)
A Deadline Sale puts in place a deadline date by which all offers must be submitted. This allows sellers and buyers to work within a set timeframe and creates a structured environment for all parties involved and creates a level playing field for buyers.
- The marketing program creates urgency with a deadline date so buyers are less likely to stall during the buying process, knowing there is a set date by which offers must be submitted.
- Purchasers have time to carry out due diligence on the property, maximising the chance of unconditional offers.
- As offers are all presented at the same time, chances of a multiple offer are maximised allowing the vendor to accurately assess if they are seeing the best from the market.
Another advantage is the opportunity to establish where the market is seeing the value of the property during the deadline process. If the property is not sold on the Deadline date, the property can be re-launched with a price based on feedback during the deadline process.
If there is any doubt about the right price to put on your property or you are not comfortable with one of the other processes, a possible alternative is to market your home for the first week or possibly two weeks 'By Negotiation'. This will allow you to obtain some market feedback prior to advertising with a price. However, it is not a good idea to leave the property by negotiation for longer than a week as feedback from buyers has been very consistent around the frustration of seeing property without pricing indicators and they often dismiss properties on this basis.
The auction process usually takes three to four weeks. This is best used where it is almost certain that there will be multiple buyers for a property who will be in an unconditional position. During the auction program you will receive feedback from the market which will help put you in a position where you are able to decide on a 'reserve price' for the auction. This usually takes place on the day of or the day before the auction.
You can decide to look at offers prior to the auction but this must be stated on all your marketing from the outset of the program.
The necessity for buyers to be in an unconditional position can be a hurdle for many especially with entry level properties leading some buyers to wait until after the auction before expressing their interest.
You should note that we are fully licensed Auctioneers and work strictly within the Code of Ethics of the Real Estate Institute of New Zealand (REINZ).
This is a similar process to a Deadline Sale, working towards a specific date on which tenders close. Tenders are run using specific tender documents and have rigid protocol such as deposits being attached with the initial offer. Tenders are strictly confidential until they are opened on tender day.
Please note: In any of the above methods of sale, the vendor can alter the process at any point during marketing as long as their desired alteration abides by any relevant legislation.