Auction, Tender, Negotiation or Asking Price? – A Simple Guide for Kiwi Home Buyers

If you’ve been looking at property listings lately, you’ve probably seen words like auction, tender, price by negotiation, or asking price and wondered what they actually mean for you as a buyer.

These sale methods aren’t just labels. They directly affect how you make an offer, when you need your finance sorted, and how much flexibility you have along the way.

To make things simple, here’s a “no-jargon” breakdown of the most common property sale methods in New Zealand.

Auction: Fast, Competitive, No Conditions

An auction is exactly what it sounds like. The property is sold on a set day, in a public setting, and the highest bidder wins.

There are two key things to understand with auctions:

• There is no advertised price
• Offers are unconditional

That means before auction day, you need:

• Your finance fully approved
• Your due diligence done (building report, LIM, legal review)

Once the hammer falls, the sale is locked in – there’s no backing out.

Why sellers like auctions:
They create urgency and competition.

What buyers need to watch out for:
If your finance isn’t ready, you can’t bid. Auctions are not the place to “see how it goes.”

Negotiation / Price by Negotiation: Flexible and Common

When a listing says “Price by Negotiation”, it means the seller hasn’t set a fixed price.

You make an offer, the seller counters, and you go back and forth until both sides agree – or you back out of the offer.

The key benefit here is flexibility.

• You can usually include conditions (subject to finance, building report, etc.)
• You have room to negotiate on price and terms
• The process is less rushed than an auction

Good to know:

Even without a price guide, agents often have an expectation range. A mortgage adviser can help you sense-check whether your offer is realistic for your borrowing power.

Tender: One Shot, Best Offer

A tender is a bit like a silent auction but with paperwork.

You submit one confidential offer by a set deadline. You don’t get to see anyone else’s offer, and there’s usually no second chance.

The seller then chooses the offer they prefer. Importantly, that’s not always the highest price. They may prioritise:

• Fewer conditions
• Stronger finance
• Shorter or longer settlement

Key things to know:

• You usually can include conditions (subject to finance, building report, etc.)
• You need to put your best foot forward from the start
• Strategy matters a lot

Tenders are common in slower or balanced markets where sellers want to weigh quality over speed.

Asking Price: Clear and Straightforward

This is the simplest option.

The seller names a price, and you decide whether to:

• Meet it
• Offer less or more (if competition exists)

Conditions are typically allowed, making this a popular option for first-home buyers.

Why buyers like asking prices:
There’s transparency. You know where the seller stands before you act.

Why the Sale Method Matters for Your Mortgage

Each sale method affects when and how your mortgage needs to be arranged.

For example:

• Auctions require fully approved finance upfront
• Negotiations and tenders allow more flexibility, but still need a plan
• Some buyers miss opportunities simply because they don’t understand the process

We often see people fall in love with a home – only to realise too late that the sale method doesn’t suit their financial readiness.

That’s why understanding the rules before you offer is so important.

How The Mortgage Hub Helps

At The Mortgage Hub, we don’t just help with home loans – we help you understand the game you’re playing.

That includes:

• Explaining which sale methods suit your situation
• Making sure your finance aligns with the buying process
• Helping you avoid costly assumptions or rushed decisions

Whether you’re buying your first home or your next one, a little clarity upfront can save a lot of stress later.

Watch this video from our Director, Mils Muliaina, where he breaks down these sale methods in under a minute – simple, clear, and straight to the point.

If you’re unsure how to approach a property you’re interested in, come talk to us first.

Remember, our advice is free, and it could make all the difference.