Auction or private sale: how we choose for your home

Most sellers want the same thing: the highest price the market will actually pay, with no drama. The method you choose decides a lot of that. Pick the wrong one and you either leave money on the table or burn weeks on a campaign that was never going to land.

Most of the homes we list go to auction. Not all of them. Here's how we actually decide.

What auction is good at

Auction creates competition. When two or more buyers want the same home and they're in the same room (or on the same call), the price moves up. Auction also gives you:

• A clear deadline. Buyers can't stall. They show up with a number or they don't.
• Unconditional terms. No "subject to sale" or finance clauses dragging the deal out.
• Transparency. You see every bid. Buyers see every bid. Nobody negotiates in the dark.

If your home has broad appeal, say a three-bedroom on a full site in Mangere, a renovated bungalow in Papatoetoe, or a family home in Manurewa, auction is almost always the right call.

When private sale fits better

Private treaty (a price tag on the home) makes more sense when:

1. The buyer pool is narrow. A unique architectural home, a lifestyle block, a property only a handful of buyers will love. Auction doesn't help if you have one or two interested parties. They know they're alone in the room.
2. The vendor needs flexibility. Sometimes you want conditions: a longer settlement, a rent-back, a specific clause. Private sale lets you negotiate those one on one.
3. Market read is uncertain. If we genuinely don't know what the market will pay, say a property type with very few comparable sales, listing with a price and adjusting weekly is sometimes the cleaner play.
4. The vendor wants quiet. Some sellers don't want the open-home churn of an auction campaign. Private sale can be lower volume.

The test we use

When I sit down with a vendor, I ask three questions:

1. How many buyer types could realistically want this home?

2. Are there enough comparable recent sales to set a defensible range?

3. Does the vendor need control over conditions, or a clean cash deal?

Broad buyer types and clear comps: auction. If any answer tilts the other way, we talk through private sale.

What auction does not mean

A few things people get wrong.

• It does not mean the home goes for less than the reserve. You set the reserve with us, and it doesn't move on auction day without your say-so.
• It does not mean you're locked in. If the bidding doesn't reach the reserve, the home is passed in and you negotiate from there with the highest bidder. Many of our deals close in the hour after the auction, not during it.
• It does not mean a four-week campaign is your only option. We've run shorter and longer. Campaign length depends on the home and the goal.

What we won't do

We won't push you into auction because it suits us. We won't take a listing on conditional terms we can't deliver. And we won't promise a number we don't believe in.

Next step

Trying to decide what method fits your home? Start with a free appraisal. We'll walk you through the comps, the buyer pool, and the method that makes sense for your specific house. No pressure to list.

You'd be surprised how often the answer is obvious once you sit down and look at the numbers.