The Power of Auction vs. Fixed Price

Choosing how to sell your home is just as important as the price you set. The right method creates “competitive tension,” ensuring you don’t just get a fair price, but a premium one. Here is a breakdown of the three most effective strategies for the Morrinsville market.

The Auction Advantage (The “No-Ceiling” Strategy)

Auctions are the purest form of real estate. They remove the “price ceiling” and allow the market to determine the true value in a transparent, public forum.

• Best For: Unique homes, high-demand areas (like Lockerbie or central character homes), and sellers who want a definite move-in/move-out date.
• The Power of “Unconditional”: When the hammer falls, the contract is legally binding. No finance clauses, no building inspections, and no “cooling-off” periods.
• Urgency: The 3–4 week campaign creates a hard deadline for buyers, forcing them to get their “ducks in a row” quickly.

Fixed Price (The “Transparency” Strategy)

Listing with a set price (e.g., “$749,000”) or “Buyer Enquiry Over” provides immediate clarity to the market.

• Best For: Properties where there is a lot of similar “stock” on the market, or when you want to attract buyers who need to sell their own home first (conditional offers).
• Wider Net: It attracts buyers who might be intimidated by the auction process or who require more time for bank approval.
• The Risk: If you price too high, you can “stale” the listing. If you price too low, you might leave money on the table. This is why our Market Appraisal is so vital.

Deadline Sale / Tender (The “Best of Both Worlds”)

In a Deadline Sale, the property is marketed for a set period (usually 3 weeks) with all offers to be submitted by a specific date.

• Best For: Lifestyle blocks and rural properties where the value might be harder to estimate, or when you want the “urgency” of an auction but the “flexibility” to accept conditional offers.
• Confidentiality: Unlike an auction, buyers cannot see each other’s bids. This often encourages them to put their “best foot forward” early to ensure they don’t miss out.
• Flexibility: As the seller, you can choose to accept, reject, or negotiate with any of the offers received.

Side-by-Side Comparison

Frequently Asked Questions (FAQs)

Can I sell my house before the Auction or Deadline day?
Yes! We often include the phrase “Unless Sold Prior” in our marketing. If an exceptional offer comes in early, we can bring the auction forward or negotiate immediately.

What if my house doesn’t sell on Auction day?
If the property is “passed in,” we immediately transition to a “Price by Negotiation” strategy. The auction campaign usually identifies the most serious buyers, making the post-auction negotiation very effective.

Does an Auction cost more?
There is typically an auctioneer’s fee (approx. $500–$1,000) and a more intensive marketing budget, but this is often offset by the higher sale price achieved through competition.