Should I Auction or Tender this Property

At a listing presentation I’m sure many sellers are listening intently to what is transpiring. However with the different methods available like Auction, Tender, Fixed Price, or other no price options, then, for some sellers, certainly those that have lived in the family home for a generation or two, it can be a stressful and confusing time.

And as we all know the most interesting time to attract those buyers is when it’s a New Listing, so its crucial to get this commencement step as right as possible.
I’ve heard of presentations where agents haven’t even completely their homework to ask the seller if they have previously been through the home selling process and what their thoughts were of that experience.
No….I’ve been relayed tales of salespeople, and sometimes whole agencies, preferring or recommending one method over another…..and in some cases looking at it with a “Nelsonians eye.”
Now don’t get me wrong a buyer needs the input of a professional salesperson, but its always interesting if you’re the last person to present……. that Agency A recommended no price marketing, agency B recommended an Auction and I offered, for example an “offers over” price.

Sites like sorted.co.nz have popped up in recent years to help buyers / sellers with unbiased advice on major decisions in their lives, and there is no doubt that the selling of a property qualifies under that heading.

Australian Weekly Auction Clearance Rates - click for full size

Australian Weekly Auction Clearance Rates - click for full size

Therefore it’s a pity that here in New Zealand that we don’t have charts the equivalent of RPDatas’ Weekly Auction Clearance Rates. These would surely aid a sellers decision process about “choice of sale” methods don’t you think? And certainly come out tops on any sort of “transparency” scale too.

Earlier I mentioned the crucialness of ensuring that the New Listing process of “going to market” is well thought out and planned, and the method of sale selected correctly.
If you get it wrong here, then the downside is usually a lower price than you could have achieved.

However if you have got to the stage where you are either changing the method of sale, as in Auction -> Fixed Price now, or are changing the Market Price, then just like the New Listing stage it has to be shouted from the rooftops.

Weekly Price Down Updates

Weekly Price Down Updates

That’s why this Weekly “Price Down” booklet from the UK’s largest Real Estate portal, Rightmove, is in my eyes, another brilliant tool that we should have here in New Zealand.

Don’t forget that many people write off a property at the first occasion when they see, for example, the price, because its over their budget.

Then in successive weeks whilst casting their eyes over the For Sale adds, they are often recognizing that same property advert, and therefore again dismissing it, by the photo. (note to agents: another good reason here you must change photos regularly)

Therein is the issue, they may never even notice that the property has reduced in price to a figure that should now interest them.

Would this be helpful in NZ?

Would this be helpful in NZ?

Yes I admit I haven’t exactly answered the question that my headline asked, but overall would these tools be useful buyer or seller aids here in New Zealand to assist in ultimately making that choice of Sale Method?

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2 thoughts on “Should I Auction or Tender this Property

  1. avatarAriel Levin

    David,
    Great tools you’ve presented here – we have a long way to go here in many ways – I wish we can use these here for greater transparency.
    BTW where did you get the like button and which sharing plug-in do you use?
    Thanks
    Ariel Levin

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