Auction, negotiation, deadline and tender explained
Helps you understand how each NZ method of sale works and what to get ready before you offer.
- At auction your bid is usually unconditional, so finish your checks and get your lawyer to read the contract first.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
- By negotiation, you can usually offer with conditions such as finance or a builder's report, each with a date.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 negotiationWhat does Building report mean?A building report is a written check of the property by an accredited inspector that lists any defects; settled.govt.nz suggests one that meets the standard NZS 4306:2005. settled.govt.nz (Te Kāhui Kāinga Ora / REA): Learning about the property
- Deadline sales and tenders ask for your best offer in writing by a set time, so ask the agent how offers are handled.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
- Ask the agent whether the seller will look at offers before the deadline.
- Fewer conditions and a settlement date that suits the seller can make an offer stronger than price alone.What does Settlement mean?Settlement day is the day you pay the balance of the purchase price and the property becomes yours. settled.govt.nz (Te Kāhui Kāinga Ora / REA): Settling on settlement day
Check the details. Ask your lawyer to read the agreement before you bid or offer, and ask the agent how this seller will handle offers.
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Shortened from a Berry article first written 2026-05-02. Figures we could not check against a public source were taken out. This is general information, not advice.