Why Auction? Why Tender?

Real Estate Planning with Anna Manning

Why Auction?

Benefits of auction:

• Attracts highly motivated and competitive Buyers.
• Provides an opportunity for you to receive a maximum sale price as it does not set a cap price.
• A sale on the day is a cash sale that is completely unconditional and therefore allows you to control the terms of the sale.
• Eliminate perceived negatives and objections to an asking price.
• Established sale date creates urgency.
• Allows you to sell prior to auction.

Considerations with auction:
• Conditional Buyers can feel excluded.
• No indicative price may deter some Buyers.

Why Tender?

Benefits of tender:
• All buyers are eligible to purchase, whether conditional or unconditional by making an offer.
• Creates urgency for buyers with closing dates.
• Time pressure on you as an owner is reduced.
• Privacy regarding what offers were received.
• You may negotiate with Buyers after the tender has closed.
• Buyers can’t attack the price so there is a good opportunity to maximise your sale price.

Considerations with tender:
• Buyers are not placed in an open, competitive bidding situation.
• Conditions may be attached to the purchase.
• No indicative price may deter some buyers.

Anna Manning is a Real Estate Agent at Leaders Real Estate Lower Hutt.
p 027 569 2749 e anna@huttrealestateagent.co.nz