In some areas of the country, particularly Auckland, auctions are popular. Here at Leaders, we find we get better results by closed tender.
Closed tender creates competition and encourages buyers to put their absolutely best price on paper. Usually the tender is run for a two week period, with no offers prior. I give the Rateable Valuation (formerly known as the GV) as a price guide, as research has shown that 53% of buyers will not respond at all to an advertisement where no price indication at all is given. In cases where the RV is higher than the expected selling price, I use a Tender Reserve price to indicate this. Buyers offer their best price, since they are or may be in competition with other buyers. In two thirds of our closed tenders, the margin between the top tender and the second-to-top tender is more than 4%.