Sale by negotiation

Monday 5 April 2004

VICKI HOLDER explains the "sale by negotiation" process of selling a property.

By Vicki Holder

Sale by negotiation is a selling process that’s appearing more frequently at the bottom of ads for multi-million-dollar properties.

With more property on the market and vendor expectations still at the peak of last year’s level, real estate auctions have gone a little flat. Property is selling, say the agents, but without the urgent feeding frenzy of last year, there are not as many properties going under the hammer. Often they are passed in to be sold in the next few days or weeks, because people are sitting on their hands, biding their time to see what the next person is prepared to pay.



It’s particularly tough at the top end in the $2 million-plus bracket where buyers are naturally always thinner on the ground, says Barfoot & Thompson agent Paul Barnao. He sells more $2 million-plus property than most in the central Auckland region and is experienced at dealing with clients at this level.

He says it’s often difficult to sell the top-end properties by auction because the process relies on the ability to produce a competitive element in a short amount of time. "That’s why we’re seeing so many expensive properties being sold by negotiation at the moment," he says.

Read More - Opens in a new window

Commenting is closed

House Prices

House price drops are short-lived - Alexander

Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.

Commercial

Resilience needed in face of change

The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.

Mortgages

Mortgage lending slumps to record low in April

Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.

Site by PHP Developer