Q&A: Price by Negotiation

Hi Olly,
What is the true definition of “Price by Negotiation” in the NZ property market. Can the listing agent take 3 offers to the vendor and start a negotiation process, thus giving the vendor an added advantage or do they have to deal by negotiating fairly on a first come first served basis?
Thanks/Regards, Clayton

Dear Clayton
“Price by Negotiation” is just a pompous way of asking for offers, without revealing the asking price.
It is a most irritating method of marketing as, from my experience, most people lose interest in a property if they have no idea of the vendors price expectations. An agent can take as many offers as he likes to the vendor and the vendor can deal with them in any order they like. It becomes a bit of a silent auction in the end and can be very frustrating for all parties, unless the agent has a good control over the situation.
Regards
Olly

Posted in Q&A | 1 Reply

One thought on “Q&A: Price by Negotiation

  1. I completely agree. I can’t stand “Price by Negotiation” just tell me what you’re hoping to get for the property. I don’t want to be drawn into a big song and dance with the agent.

    Furthermore, I’m amazed that so many agents are foolish enough to use it. My wife and I are house hunting right now and we pass over any house where the price isn’t marked.

    Olly, you speak the truth.

    -Joe

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