Buying A Property - Five Sale Methods

Purchasing property in New Zealand is an exciting milestone, but the process can feel overwhelming if you’re not familiar with how homes are sold here. From private negotiations to auctions, each method has its own rules, timelines, and potential risks.

Here’s our expert guide to the five key sale methods and why working with a property lawyer early can save you stress, time, and money.

1. Negotiation: Flexibility When You Need It Most

What it means
The property is listed with a price or “by negotiation.” Buyers can make an offer, and the seller can accept, reject, or counteroffer.

Why buyers like it
You can add conditions (e.g., finance approval, LIM report, building report).
More time to complete due diligence before you commit.

Points to watch
The process can take longer, especially if there are multiple buyers.
Sellers may wait for stronger offers before accepting.

 2. Tender: One Opportunity to Impress

What it means
Submit your best written offer before a set deadline. All offers are confidential and reviewed together after the tender closes.

Why buyers like it
You have time to prepare your offer carefully, as tenders are usually advertised well in advance.
A fair process where all offers are considered at once.

Points to watch
No visibility of competing offers.
No chance to revise once submitted.

 3. Auction: Transparent but Final

What it means
A public sale where buyers bid openly. If the reserve price is met, the highest bidder secures the property and enters a binding, unconditional contract.

Why buyers like it
Transparent pricing with open competition.
Quick and decisive process.

Points to watch
You must have finance and all due diligence completed beforehand.
No conditions allowed – the sale is final once the hammer falls.

 4. Deadline Sale: A Tender with Wiggle Room

What it means
Like a tender, buyers submit offers by a deadline. However, the seller may negotiate with one or more buyers after reviewing the offers.

Why buyers like it
Flexibility to include conditions in your offer.
Chance to negotiate further after the deadline.

Points to watch
Uncertainty about other offers.
May require quick action after the deadline.

 5. Multiple Offer: When Competition Heats Up

What it means
When several buyers show interest at the same time, all are asked to submit their best offers for the seller to review simultaneously.

Why buyers like it
Equal opportunity for all buyers to put forward their best offer.
Conditional offers may still be considered.

Points to watch
You won’t see other buyers’ offers.
Pressure to strike the right balance between price and protection.

The Risks of Unconditional Pre-Auction Offers

Offering unconditionally before an auction can seem like a shortcut, but it carries serious risks:

• The auction may be brought forward, giving other buyers a chance to compete.

• No safety net: Without conditions, you’re legally bound even if issues arise later.

• You must have finance locked in or risk breaching the contract.

Unless you’ve done all your due diligence and secured funding, we strongly recommend caution.

Why You Need a Property Lawyer From Day One

Every sale method has unique legal obligations and risks. Missteps could cost you your deposit, delay settlement, or lead to costly disputes.

At Turner Hopkins, we help you:

• Review sale contracts and spot potential pitfall

• Advise on protective clauses to safeguard your interest

• Guide you through due diligence and pre-settlement checks

• Manage the legal process for a stress-free purchase 

Why You Cannot Make a Conditional Pre-Auction Offer

In New Zealand, properties marketed for auction are always sold “unconditionally”. This means the successful bidder at auction is legally bound to purchase the property without any conditions once the hammer falls. There is no room for further negotiation or adding clauses after the auction concludes.

A pre-auction offer is treated in the same way as bidding at the auction itself. When you submit a pre-auction offer, you are asking the vendor to accept your offer outright or to bring forward the auction using your offer as the opening bid. Either way, your offer must be unconditional because:

1. Auctions Are Designed for Unconditional Sales

The auction process is intended to achieve a clean and binding sale for the vendor. Allowing conditional offers would undermine this certainty and discourage other buyers from participating.

2. Legal Framework

Under the standard NZ auction terms and conditions, any offer made before the auction must mirror the legal framework of the auction. This means it must not be subject to conditions such as finance approval, building reports, or due diligence.

3. Practicality for the Vendor

Vendors and agents will not entertain a conditional pre-auction offer because it creates uncertainty and delays. The auction method is chosen specifically to generate competition and secure a sale that is final on the day.

4. What Does This Mean for Buyers?

If you wish to make a pre-auction offer, you must:

• Have your finance fully approved.

• Complete your due diligence (e.g., LIM report, title check, building inspection) before submitting your offer.

• Be ready to proceed unconditionally.

This is why engaging a lawyer early is so important. Your lawyer can help you review all documentation and highlight any risks before you commit.