Auction rather than fixed price the best strategy

Homes with a price tag are likely to stay on the market for a lot longer and potentially achieve less than they would if the market determined the price, according to Harcourts International managing director Mike Green.

People putting a price on their properties in New Zealand and Australia are not doing themselves any favours in the current climate, where buyers are still cautious and "testing" the market.

"The current real estate market is rapidly changing, very much impacted on by volatile global economic conditions, and the number of properties being listed for sale is lower than usual too so that's adding another dimension, namely a build-up of demand in some areas," Green says. 

"Given these circumstances it is particularly difficult for real estate sales professionals to give sellers an accurate appraisal as to what price a home might achieve and so marketing with a price may be unwise."

Therefore, auctions may be the best and most effective choice for sellers in today's market.

"Firstly, auction marketing campaigns mean there is no ceiling put on the price and in the end many sellers are very surprised by what the market is willing to pay for their property at or before auction day."

Auction properties also generally sell faster, Green says, due to the increased exposure provided by typical auction marketing programs, which generally attract a greater number of prospective buyers.

They also create a sense of urgency through their campaigns and auction day deadlines.

"This urgency is not typically felt where a property is marketed with a price with no timeframe within which a buyer needs to act," Green says.