TD PhotoWays To Buy A Property

Team Davis would love to help you Buy your next Property.  We have an indepth Needs approach to finding you the Right Property to meet all YOUR NEEDS.  So please give us a call as we would love to help you on one of life's more important journeys.  CONTACT US NOW!

An overview of the range of methods used

There are many pricing methods used to sell and buy property. This comprehensive guide details each of these methods. Speak with Team Davis Property Sales Consultants for more information about how to go about putting an offer on a property based on which sales method is being used.

Auction

Buying a property at auction is an open process where buyers bid against each other to purchase the property. The vendor sets a reserve price before the auction and once this price is reached, the highest bidder becomes the successful buyer.

All bidders must be unconditional buyers – there are no conditions on the offers and sold means sold unconditionally.
A vendor can still consider offers before the auction if the auction terms and conditions allow for this, normally the words 'Unless Sold Prior' appear on the Advertising material.
A vendor will set a reserve price which is the lowest price they are willing to accept an offer to sell their property.
There is no advertised pricing, there is no ceiling on the price so the final price will entirely depend on those bidding for the property and what they are prepared to pay to secure this property.

For this very reason often a higher price can result than expected when there are 2 or more serious buyers wanting the property.

If you are going to buy at Auction the most important thing for you to do is all your research, preparation and investigation around the property to ensure that you know exactly what it is your are buying.

How the bidding process works

Once the bidding passes the reserve price, the property is on the market and will be sold to the highest bidder.

If the bidding does not reach the reserve price, the auctioneer will pause the auction and discuss what the vendor would like to do next.

  • If bidding is close to reserve price, but not quite there, a vendor can agree to put the property on the market, in which case the highest price buys the property; or the vendor can advise the auctioneer that they will not sell at that price and the property gets “passed in.” The auctioneer will let people know the auction is finished because the reserve price has not been reached.
  • At Team Davis Property Sales Consultants, we suggest that the vendor negotiate with the person who made the highest bid. This still gives them the opportunity to sell the property on the day or soon thereafter - however a final offer on this basis may not be unconditional.

Tender

A tender is a method where buyers submit confidential written offers for a property by a set date. Offers can be accepted prior to the advertised close date, but this must be made clear in the advertising material. There is no reserve price but there may be a price indication.

  • All offers are confidential between the Buyer and the Vendor.
  • Vendors have the option of accepting whatever offer they want to accept, this may not necessarily be the highest offer as the Vendors may not wish to sell to that buyer but prefer another buyer to buy the property.
  • Vendors have time to consider the offers before they make a decision.
  • There is no ceiling on the price – no restrictions by advertising a price, so here again it is up to each buyer to offer the price they are prepared to pay to buy this property.

An offer will be drawn up on tender documents provided by the vendor or their solicitor. If an offer is made prior to the tender close date, it is drawn up on a standard Sale and Purchase Agreement.

Price by negotiation

Selling a property by negotiation is a good way to sell when it is difficult to estimate the price a property is likely to sell for or you want to remove the immediate focus of a price from the advertising allowing a wider audience interest in the property.

This sales method sees a buyer make an offer based on what they believe the property is worth. Buyers have to do their own research to make this judgement and then vendors can negotiate with them on price and conditions through their Sales Consultant.  A good Sales Consultant can secure a better price by good negotiation skills.

  • There is no time pressure on buyers to buy or for that matter on the vendor to sell.

Price Range Indication

A property can be marketed by giving a pricing guide or indication of the price range a vendor expects to achieve for their property.

Buying a property marketed like this is the same as Price by Negotiation except that you have a range indication.

Fixed Price

Properties can be advertised with a price. This method of sale still allows the vendor to negotiate with you on price when you make an offer.

Deadline Sale or Set Date Sale

A deadline sale is similar to a tender in that buyers submit confidential written offers for the property by a set date. Offers can be accepted prior to the advertised close date, but this must be made clear in the advertising.

There is no reserve price but there may be a price indication. The difference between a deadline sale and a tender is that rather than submit an offer on tender documents, the buyer submits their offer on a standard Sale and Purchase Agreement.

  • All offers are confidential between the Buyer and the Vendor.
  • The vendor has the option of accepting an offer before the deadline date as long as this is clear in the marketing material.
  • The vendor has time to consider the offers before you make a decision.
  • There is no ceiling on the price – no restrictions by advertising a price.
Want to know the latest about Northland Property, then subscribe to our Market Updates below.

captcha  

VOTED BY ORDINARY NEW ZEALANDERS 6 YEARS RUNNING AS THE MOST TRUSTED BRAND IN REAL ESTATE

201805 Most Trusted 2013 2018 Logo 800

harcourts logo

201805 Most Trusted Brand whg

Harcourts Foundation1200x300