Agree on a price offered by a buyer, or nominate a reserve price if selling by auction:
Real estate agents have an obligation under the Property Agents and Motor Dealers Act 2000 to submit all offers that comply with the seller’s instructions to the agent. Exceptions occur when, for example, the seller instructs their agent not to submit offers under a certain dollar figure.
Agents also have a statutory obligation to attempt to get the highest possible price for the seller.
Sometimes the conditions can make certain offers more attractive for reasons other than the proposed price alone.
Some sellers may be prepared to accept a lower price if the offer is unconditional rather than take the risk that a higher offer may not proceed to settlement, because of the special conditions required by a buyer.
In the case of an auction it is the seller’s right to set the reserve price. The seller should consult with their agent when setting the reserve, as they will be familiar with recent sales of similar property in the area. Sellers should remember to be realistic and to keep the age old principal of supply and demand in mind, as well as other general market considerations.
The REIQ recommends that you do not disclose or discuss your reserve price with anyone except your agent/auctioneer.
