Auction or by negotiation: choosing how to sell
Compare selling by auction with selling by negotiation, so you can choose with the right questions.
- Auction puts buyer competition on one day.What does Auction mean?An auction is a public sale where the highest bid wins once the seller's reserve price is met, and the winning bid is unconditional, with the deposit usually paid on the day. settled.govt.nz (Te Kāhui Kāinga Ora / REA): Buying by auction Buyers bid unconditionally and you set a reserve.
- By negotiation lets buyers come forward when ready.What does By negotiation mean?By negotiation means there is no end date for offers: you offer what you think the home is worth, with any conditions you need, and agree the price and terms with the seller. settled.govt.nz (Te Kāhui Kāinga Ora / REA): Buying by negotiation You weigh each written offer as it arrives.
- Auction marketing is paid up front, even if the property is passed in. Ask what is spent and when.
- A deadline sale sits between the two.What does Deadline sale mean?In a deadline sale the home is marketed for a set time with an advertised end date, and buyers make their offers by then. settled.govt.nz (Te Kāhui Kāinga Ora / REA): Buying by deadline It sets a date for offers without a public auction.
- Ask your agent why the other method would not suit your property. Marketing spend can be discussed.
Check the details. Check method, marketing cost and contract terms with your agent in writing, and have your lawyer read the agency agreement.
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Shortened from a Berry article first written 2026-05-18. Figures we could not check against a public source were taken out. This is general information, not advice.