Page 10 - Vanessa Tate

Pricing Methods
There are several methods of selling property in New Zealand. It is important
that you understand the process for the property you are selling.

Advertised price, deadline sale and by negotiation are the most common
methods of selling property in New Zealand. Offers for these sale methods
will be written on the standard sale and purchase agreement.

As you saw on previous pages, you can also sell by auction or tender. There
are special sale documents for selling by auction or tender.

In all methods, apart from during an auction, buyers can make either
conditional or unconditional offers on a sale and purchase agreement. You
and the buyer can then negotiate through the agent.

In an auction, the buyer who places the highest bid above your reserve price
wins the auction and must complete the sale.

'Asking Price' or 'Fixed Price'

Selling at a fixed price can enable both conditional and unconditional buyers to purchase
your property. It makes it easier for the buyer to negotiate a sale and helps to ensure that
your property only attracts buyers who are willing to offer the price that you are asking.

'Expressions of Interest Over' , 'Buyer Enquiry Over' or

'Offers Over'

One way is marketing it as buyer enquiry over (BEO), Expressions of Interest Over (EIO) or
Offers Over (O/O) a certain amount (such as “BEO $350,000”) or by giving a pricing guide.
These give an indication of the lowest price the seller hopes to get for the property. The
seller will then negotiate with prospective buyers, through the agent. Prospective buyers
can still make an offer below the BEO or pricing guide price advertised.

'Negotiable From', 'Price Upon Application' or 'Price By

Negtiation'
Price by negotiation may be used when it is hard to estimate the price a property is likely to
sell for. Prospective buyers make offers based on their perception of the market value of the
property and the seller will negotiate with them on price.

'Set Date Of Sale' or 'Deadline Sale'

A deadline sale or deadline private treaty is very similar to the tender process but is less
formal and allows more flexibility, particularly for the vendor. A property is offered for sale
with no fixed price over several weeks, and prospective purchasers are required to submit
their offers at any point by a specified deadline date and time.

Marketing With No Price
Your property can be offered for sale without a price, ie Expressions of Interest or Offers.
Purchaser responses will be conveyed to you in order to establish a true Market Value for
your property thus minimising the risk of under-selling.