Deadline Sales in NZ – Deadline Private Treaty
If you’re thinking of selling your New Zealand property, you will no doubt be considering what is the best method of sale. An experienced real estate agent will be able to recommend the method which is most suited to your property and likely to get you the best price for your sale. Your decision may also be determined by your individual circumstances and time frame.
In New Zealand, there are a few ways you can sell your home. These include asking price, BEO ( buyer enquiry over), deadline sale or private treaty, tender or auction. These methods all fall into one of either two camps, with or without an advertised price.
A deadline sale is a relatively new sales method and does cause some confusion. Each and every company will run a deadline sale slightly differently. Here we touch on the general process.
So what is a deadline sale?
A deadline sale, or deadline private treaty, is when a property is advertised for sale without a price allowing prospective buyers to submit confidential offers until a fixed date. Once the date is reached and offers are presented, the vendor is able to choose which offer they would like to accept. They are not however obligated to accept any offers.
What are the benefits of a deadline sale?
A deadline sale is beneficial when there is uncertainty regarding the potential sale price. This could be due to mixed end use, or the fact that the property is of a particular type and quality, and has the ability to generate an above market premium.
Unlike an auction where buyers must be unconditional, in a deadline sale all offers, conditional and not, can be presented to the vendor. If the vendor is looking for a quick sale, they have the option to choose a lower, but unconditional offer.
All offers made on the property are confidential, and because buyers are encouraged to put their best foot forward, the process can result in above market, sales premiums.
For the vendor the offer process is private and confidential which ensures they have time to consider offers without the undue pressure of a public sales process such as auction.
Offers are made on a standard ADLS (Auckland District Law Society) Sale and Purchase agreement rather than through an ADLS Tender form which allows buyers to offer subject to their own conditions.
While a deadline sale does allow offers to be made with clauses or conditions, the short time frame and general objective of a deadline sale is to encourage confidential, unconditional offers.
Which is the best method for selling your home?
How you choose to sell your home will depend on the current state of your local property market, the present level of interest for your particular style of home, and the target market of your buyers.
The best way to sell your house will ultimately be determined by your individual circumstances. Taking the time to ensure you have received the best real estate advice from your real estate agent will protect you during the sale process.
Ben Stevens is Wellington’s only licensed real estate agent and registered property valuer which means he has experience, knowledge and skill beyond which can be expected of a standard real estate salesperson.
If you’d like to speak about the potential sale of your house contact Ben Stevens and the team for free and friendly real estate advice including market appraisals, property consultancy, home styling, and real estate services.