Insider guide: how to choose the best method for selling your home

New Zealand Sotheby’s International Realty North Managing Directors Ben Macky Susi Matz take us through the process of pricing your home for sale.

In the ever-evolving real estate market, agents understand the need to adopt a dynamic approach to property sales.

The FOMO-induced frenzy of two years ago has subsided, requiring a more strategic and discerning approach.?

While any vendor is ultimately looking for the best possible price and sale conditions, the path to get there is often far from straightforward. Working with an agent who can provide valuable guidance is crucial, particularly now in 2023, as we see the market continuing to fluctuate.

Which sales methods are most popular in 2023?

In Auckland, we are seeing a gradual resurgence in the popularity of auctions and it’s likely this trend will extend to other regions across New Zealand.

Recent data from the Real Estate Institute of New Zealand reveals that in May 2023, more properties were sold via auctions in Auckland than in any other region. This equates to around 18% or 325 out of 1,793 property transactions sold under the hammer. In the previous month, auctions comprised 16% of all sales.?

While auction sales in Auckland are on the rise, the rest of the country is experiencing a slight decline in properties sold this way. In May 2023, only 6.2% of properties were auctioned, a decrease from the previous month's 6.4% and a noticeable drop from 7.8% in May 2022.

For now, in Auckland, we are seeing buyers showing greater confidence as they recognise there are favourable conditions for buying at auction.

Key factors to consider when choosing the sales method

As we have seen in recent years, the real estate market is ever-changing. There is no one-size-fits-all solution for selling your home. However, there are important elements to consider before you choose how to market your property.

What is your ideal outcome?

A big part of the sales method decision is understanding the seller's objectives and circumstances. Do they need a quick sale because of a family situation? Or are they under no pressure and willing to hold out for the best possible offer? How important are the terms of the sale?

In New Zealand, auctions are a popular sales method for those looking for a fast sale. They result in a quick, unconditional sale and the sense of urgency can stimulate buyers to put their best offer forward.

What are the unique elements of the property?

A good agent will uncover every detail of the property – from the architectural style to land covenants. They will know local amenities such as schools and understand the local community well. Knowing these factors will help determine what sales method would appeal to the ideal buyer. This level of knowledge also helps instil confidence from buyers to ensure a fast and smooth sale process.

To price or not to price

Auction, deadline sale, and tender are all marketing methods that don't list a sale price. We often see unique or high-end properties sold this way, particularly when comparison sales are limited. However, certain market conditions can also influence buyers to use this method.

When linked to a deadline in time, the no-price method creates a competitive environment among potential buyers, which is valuable when the buyer pool is small.

Even though current trends suggest a decrease in overall activity compared to previous years, demand for high-quality properties in prime locations remains strong. With strategic national and international marketing, such properties continue to attract the attention of discerning buyers and yield excellent results. We have recently seen examples of this in the Auckland market.?

The owners of a magnificent Coatesville property valued at over $11.5 million approached us to discuss marketing their home. Taking a detailed look at the unique elements of the property and having a clear understanding of the temperature of the market, the decision was made to market nationally and internationally through NZSIR and SIR luxury websites with a price of $11.75m.

The result was a very positive one for the sellers with excellent scripting and sensational photography creating interest and excitement, resulting in quality high net worth enquiry and a multiple offer scenario.

Similarly, the sellers of a $10M plus beachfront home benefited from an intelligent national and global marketing campaign and attracted seven competitive offers from local and international buyers after choosing to go to tender.

These successful outcomes highlight the effectiveness of a tailored sales strategy designed to match the property's unique characteristics and to take advantage of the prevailing market conditions.

The market in 2023

Despite uncertainty in the market, sellers still have opportunities to maximize their outcome through strategic marketing and premium presentation. Knowing effective strategies becomes crucial in the face of buyer hesitancy, rising rates, and tighter lending rules. Working with an agent with a strong ability to negotiate is critical as we see cautious buyers wary of prices moving again.

To wrap up, the choice of sales method is not a one-size-fits-all process but a carefully tailored one that considers many factors.

Thinking of selling? Have a look at why you should sell with us >