Auction, tender, deadline sale or negotiation

What it is

In Auckland most homes are sold by auction, by tender or deadline sale, or by negotiation. Private sales with no agent, and multi-offer situations where several buyers submit at once, are variations on these. Each method has its own rules about conditions, deposits and timing, and the agent will usually tell you which applies in the first conversation.

Why it matters

Under an auction you cannot bid subject to finance, a building report or a LIM. Every check has to be done before the day. Under a tender you can include conditions but you are competing blind, so the strength of your conditions matters as much as the price. Under a negotiation you have the most protection but you may be up against someone offering unconditional.

How we handle it

We ask the sale method first, then plan the legal work to match. For auctions that means a pre-auction review of the title, LIM and agreement. For tenders we help you set conditions that protect you without making the offer unattractive. For negotiations we draft the conditions so you have a clean exit if something turns up.

Common traps

• Making a conditional pre-auction offer. The vendor can accept it and bring the auction forward, and you lose the ability to walk away.
• Submitting a tender with a long list of conditions when another buyer has none.
• Agreeing to a backup offer that ties you up while you keep looking.
• Buying privately without an agent and assuming the agreement is standard.