How a home is sold matters as much as what it costs. Some methods require you to have spent thousands before you know whether you are even in the running.
Auction
Bids at auction are unconditional. To bid safely you need finance confirmed on that specific property, plus a LIM, a title review and usually a builder's report — all done and paid for before auction day, with no refund if you are outbid.
There is no published price, so you can spend $1,500–$2,500 on due diligence for a home that sells $150,000 above your limit. That is why we treat auction-only campaigns as failing our First Home Ready check.
You can sometimes buy before auction
Ask the agent whether the vendor will consider a pre-auction offer. If accepted, it usually brings the auction forward — but it is a legitimate way to buy conditionally.
Deadline sale (deadline private treaty)
All offers are due by a set date. Conditional offers are usually allowed, which makes this workable for first home buyers — though a clean, well-priced conditional offer competes against cash. Vendors can also accept a strong offer early, so do not assume you have until the deadline.
Tender
Similar to a deadline sale but more formal: written offers in a sealed envelope, opened together. Conditions are usually permitted, but you get one shot at your number — no negotiation round in most cases.
Price by negotiation or asking price
The friendliest method for a first home buyer. You know roughly what the vendor wants, you can offer conditionally, and you can negotiate. Most of our listings are sold this way for exactly that reason.
What to ask, whatever the method
- Will the vendor consider conditional offers, and which conditions?
- Is there a deadline, and has any offer already been received?
- What is the vendor's preferred settlement date?
- Are there any known defects, and can I see the LIM and title?
The short version
- Auctions require unconditional bidding — high cost, high risk on a small deposit.
- Deadline sales and negotiation usually allow conditions.
- Always ask whether a pre-auction or early offer will be considered.
- Costs of due diligence are yours whether or not you win.
General information for New Zealand first home buyers, not financial or legal advice. Rules and lender criteria change — check anything important with your solicitor, your lender or a mortgage adviser. Sources: Real Estate Authority (REA) — methods of sale guidance.