A monthly real estate market survey by First National New Zealand has found that auctions were the least effective tool for residential housing sales in March, but do appear to be currently effective in mortgagee sales.

Survey respondents were asked to rate the effectiveness of selling methods (auctions, tenders and individual negotiations) in their regions.

Individual negotiation between buyer and seller was deemed by 72% of respondents as the most effective, followed by tenders at 18%.

Auctions were considered best method in just five locations - Manurewa, Rotorua, Waiheke Island, Tauranga and Timaru. However, First National agents in Ashburton, Kaitaia, Otaki, Tauranga and Wanganui said auctions were working well for mortgagee sales.

First National Group general manager John Stewart is reported to have said that in the current subdued market, vendors need to make sure they were using the right selling tool.

He also said that while mortgagee sale appears to be ideal for auctions, and tenders can provide vendors a multi-offer situation, skillful individual negotiation will usually achieve the best price.

"It's that fine balance that real estate professionals must manage between getting the vendor a sale and attaining for them the best price available in the market." « Back to News