deadline sale vs closed tender - which would you choose?

[coolbananas]

I am about to sell my Wellington based investment property and have spoken to 2 different real estate agents. One believes the property should be sold by deadline sale and the other by closed tender. The latter does not believe in deadline sales.

I understand the difference between the two methods but am unsure which would yield the best results.

Any thoughts or insights?

[Perry]

Thought of trying TradeMe?

[erinak]

Yes, I was of the same too re TradeMe.

[donna]

Some sellers start with the deadline sale to push the urgency and if they don’t get what they want for the property the sale switches to a tender.

You probably want it gone as quickly as possible - is it a first home buyers property, investor or both?

Cheers,

Donna

[coolbananas]

Thanks, Donna. With the changes to the ability to deduct mortgage interest I don't think it would be for investors. Definitely first time home buyers or someone wanting to downsize.

[donna]

^^ When we sold one of our rentals this time last year - we'd had tenants in for 15 years and it showed. We spent 3 weeks doing the following:

• sugar soap everything,
• then painting - everything (inside and out) - had to do some prep work before exterior painting.
• Put in a new cistern, oven, small dishwasher (never had one)
• New curtains
• new carpet - bedrooms, hallway, open plan living
• (didn't replace lino in kitchen, bathroom, toilet or laundry as it was passable)
• water blasted fence
• gardening

Then we staged 2 of the 3 bedrooms, kitchen and living and outside verandah.

Of course, had we sold it 6 months later - we'd have got 20% more - but we were happy with the outcome we got. Sold to a first homebuyer - also had lots of interest from downsizers and investors.

Cheers,

Donna

[DaveW]

Can you explain what you perceive to be the difference.

[DaveW]

What are the differences between for sale by Tender and for sale by Deadline ?

[donna]

https://www.rea.govt.nz/real-estate-professionals/the-sales-process-and-general-guidance/tender-negotiation-and-deadline/#3077-deadline

Have you seen this Dave - from REAA

[DaveW]

As suspected, there is very little difference and nothing that can't be amended in tender documents to make it behave the same as deadline sale.

Perhaps the words "Deadline Sale" is easier to recognise.
.

A deadline sale offers vendors more flexibility than sale by tender. The vendor can accept an offer at the time that suits them.

They may also choose not to accept any offer until the end date. Offers are made on standard sale and purchase agreements and prospective buyers can include terms in their offer.

If you have a popular/ sought after property in a hot market, I would advise Auction.