House Sale Types | Briana McDonagh

Before you start making offers

Get your pre-approval sorted first

Regardless of the sale type, having a pre-approval in place before you start making offers puts you in a much stronger position. For auctions, you need to have an unconditional finance approval in place before you bid. For all other methods, it means you can move quickly and confidently when you find the right property. Get in touch and I can help you get pre-approved before you start your search.

The sale types

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By Negotiation / Price by Negotiation

The most common sale method in New Zealand

Most common

How it works

The property is listed without a fixed price. Buyers make written offers through the real estate agent, and the vendor can accept, reject, or counter-offer. The negotiation continues back and forth until an agreement is reached — or not. There is no deadline and no time pressure.

What you see on listings

You may see "By Negotiation", "Price By Negotiation" or "PBN", "Enquiries Over $X", "Offers Over $X", or an asking price with room to negotiate. An asking price is a starting point — not necessarily the final price.

Can you add conditions?

Yes. This is one of the most buyer-friendly methods. You can include conditions such as a finance condition, a building report condition, a LIM report condition, or any other due diligence you need to complete before committing.

Multi-offer situations

If more than one buyer submits an offer, the agent will notify all interested parties and invite everyone to submit their best offer. The vendor does not have to accept the highest offer — they can choose any offer or continue negotiating.

As a buyer

Can add conditions to your offer
No time pressure — negotiate at your own pace
Full flexibility on price, terms, and settlement date

Things to be aware of

No price guide — you need to research comparable sales
Another buyer can make an offer at any time
Multi-offer situations can feel like an informal auction

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Auction

Public competitive bidding — unconditional from the hammer

Popular in main centres

How it works

The property is marketed for a set period — typically three to four weeks — leading up to a public auction date. Registered bidders compete openly. If the reserve price is met and the hammer falls, the sale is final and unconditional.

Unconditional — what this means

Auction bids are unconditional. The moment you are the successful bidder, you are legally committed to the purchase. There is no opportunity to add a finance condition or building report condition — these must all be completed before auction day. You cannot pull out without significant consequences.

What to do before bidding

Get an unconditional finance approval from your mortgage adviser. Arrange a building inspection before the auction. Get a LIM report. Review the sale and purchase agreement with your lawyer. Only then should you register to bid — and set a firm limit before you walk in.

If it passes in

If bidding does not reach the reserve price, the property is "passed in." The highest bidder usually gets the first opportunity to negotiate with the vendor after the auction. The property may then be relisted by negotiation.

As a buyer

Transparent — you can see competing bids in real time
If you win, the property is yours — no risk of another buyer
Can sometimes pick up a bargain in a quiet market

Things to be aware of

Unconditional — finance and due diligence must be complete first
Emotionally pressured — easy to bid past your limit
Upfront costs (building inspection, LIM) if you do not win

Set your maximum bid before you walk in — and stick to it. The auction room is designed to create competition and urgency. Keep in mind that the upfront costs of due diligence (building inspection, LIM report) are spent regardless of whether your bid wins — so this is worth factoring into your budget when attending multiple auctions.

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Deadline Sale

Sealed offers by a set date — conditions allowed

Good for first home buyers

How it works

The property is marketed for a set period, and all offers must be submitted by a specific date and time. The vendor reviews all offers after the deadline and can accept, reject, or negotiate with any buyer. Unlike an auction, buyers submit their offers privately — not in a public room.

Can you add conditions?

Yes — this is a key advantage over auction. You can include conditions such as a finance condition, a building report condition, a LIM report condition, or any other due diligence you need to complete. This makes deadline sales much more accessible for buyers who need time to finalise their finance or complete their due diligence.

Can you offer before the deadline?

Often yes — listings marked "deadline sale unless sold prior" mean the vendor can accept an offer at any time before the deadline if it is strong enough. It is worth asking the agent whether the vendor would consider a pre-deadline offer.

What happens after the deadline?

The vendor reviews all offers and is not obliged to accept any of them. They can choose to negotiate with one or more buyers, accept the best offer outright, or decline all offers and relist the property.

As a buyer

Can add finance and due diligence conditions
Time to do your research during the campaign
Private — competing offers are confidential

Things to be aware of

Blind process — you do not know what others are offering
Risk of overpaying if your offer is well above the next
Vendor can ignore all offers — no guarantee of a sale

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Private Sale

Direct deal between buyer and vendor — no agent involved

Flexible

How it works

The vendor sells directly to a buyer without using a real estate agent. The two parties negotiate directly — or through their lawyers. Because there is no agent commission involved, there may be more room to negotiate on price.

Can you add conditions?

Yes. A private sale uses the same standard sale and purchase agreement as any other sale. You can add conditions for finance, building report, and LIM. Your lawyer should be involved from the outset to ensure the agreement is correctly prepared.

Things to watch for

Without an agent managing the process, it is important that both parties have legal representation. Do not sign anything without having your lawyer review the agreement first. Private sales are generally straightforward, but the lack of an agent means there is less guidance through the process.

As a buyer

Can negotiate directly with the vendor
Potentially more room on price without agent commissions
Can include conditions in the same way as any other sale

Things to be aware of

No agent to guide the process — legal advice is essential
Fewer properties available this way — often not advertised publicly

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A note on multi-offer situations. In any sale type other than auction, if more than one buyer makes an offer, you may find yourself in a multi-offer situation. The agent must notify all parties and invite everyone to submit their best offer. You will not know what others are offering — so make sure your offer reflects what you are genuinely willing to pay for the property. Your mortgage adviser can help you understand your borrowing limit so you know exactly where your ceiling is before you submit.

Ready to start making offers? Get your pre-approval sorted first and you will be in the strongest possible position — whatever the sale type.

Get in touch →

This guide is for general information purposes only and does not constitute legal or financial advice. Sale processes and conditions vary between individual properties and agents. Always involve your lawyer before signing any agreement.

House sale types explained