Sale by negotiation
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.
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