Selling by Auction in Christchurch - A Complete Guide for Vendors

Auction is the dominant sale method in Canterbury. Harcourts Grenadier runs a major auction every Thursday, Harcourts Gold every Thursday at 10am. For the right property in the right market, auction is one of the most effective methods available to Canterbury vendors. Here is exactly how it works.

How the Auction Campaign Works

A standard Canterbury auction campaign runs approximately four weeks. During this period, your property is marketed intensively with professional photography, listing on realestate.co.nz and Trade Me, open homes, and database marketing to registered buyers. At the end of the campaign, registered buyers attend the auction room (or bid online via live stream) and compete openly for your property. The highest bid above your reserve price wins - unconditionally. There are no conditions at auction: buyers who bid successfully must complete the purchase. This is the key strength of the auction method.

Setting the Reserve

The reserve is the minimum price below which your property will not sell on auction day. You set the reserve in the days before the auction, in consultation with your agent. The reserve should reflect your genuine market evidence and what you would accept. Setting the reserve too high kills the competitive dynamic. Setting it below market value creates tension if the auction falls short and you have to make a decision about whether to sell or pass in. Your agent will advise you on the appropriate reserve based on the market evidence and buyer feedback gathered during the campaign.

What Happens on Auction Day

On auction day, registered bidders attend or connect online. The auctioneer opens the bidding, and buyers compete by calling or signalling bids. If the bidding exceeds your reserve, the property is sold unconditionally to the highest bidder when the auctioneer's hammer falls. If the bidding does not reach the reserve, the property is passed in - typically to the highest bidder, who then has the right to negotiate directly with the vendor immediately after the auction. Most Canterbury passed-in negotiations result in a sale on auction day if the gap between the highest bid and the reserve is not too large.

Pre-Auction Offers

Buyers can make pre-auction offers - conditional or unconditional - before the auction date. If an offer comes in at or above your reserve and you wish to accept it, you can move the auction forward or take the property off market. This is a genuine option that many Canterbury vendors exercise when a compelling pre-auction offer arrives. Your agent advises you on the strategic implications of accepting a pre-auction offer versus proceeding to auction.

When Auction Is and Is Not the Right Method

Auction works best for properties with broad buyer appeal, active competition likely in the buyer pool, and vendors who can commit to the campaign and date. It is less suited to unusual properties, properties with a narrow buyer pool, or vendors who need a specific, guaranteed date for settlement reasons. For most standard Canterbury residential properties in good condition and correctly priced, auction is a strong option.

For general information only. Consult your real estate agent for advice on the best sale method for your specific property.