Auction Strategy – Creating Competitive Tension for a Premium Result

Q: What happens if my property is 'passed in'?

If bidding fails to reach the reserve, the property is 'passed in.' This is not a failure; it starts a negotiation phase where the highest bidder often gets the first right to negotiate.

The Art of the Bidding War

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Auction strategy isn’t just about showing up on the day. It is a calculated process designed to create a competitive bidding environment. A well-executed strategy focuses on a defined 3–4 week intensive marketing campaign, resulting in a cash-unconditional sale. Key elements include setting a confidential reserve price and leveraging our no-vendor bidding policy to build buyer trust.

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Darren Ryder

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The “Space Launch” Analogy

Think of an Auction Strategy as launching a spacecraft.

You have a specific launch window (the 3-week campaign) where everything must be technically perfect. If you wait too long or launch without enough fuel (marketing), you won’t reach orbit (premium price).

My role is your mission control, ensuring we hit the exact speed and trajectory required to achieve a successful landing at settlement.

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Auction Strategy FAQs

How do I know if auction is right for my property?

Auction is highly effective for properties with broad appeal, unique features, or those in high-demand Auckland suburbs where multiple buyers are likely. It is less suited for properties requiring conditional buyers or in very slow markets. Discuss your strategy | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

What is a reserve price and who sets it?

The reserve is the minimum confidential price you are willing to accept. It is set by you (the vendor), typically on the morning of the auction, based on comparable sales and direct buyer feedback collected during the marketing campaign. Book an appraisal | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

What does ‘no vendor bidding’ mean?

It is a policy where the auctioneer is prohibited from placing fake bids on behalf of the seller to inflate the price. Barfoot & Thompson operates a strict no-vendor bidding policy, ensuring all activity represents genuine buyer interest. Learn about transparency | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

Can I accept an offer before the auction day?

Yes. If a strong unconditional offer is submitted, you may choose to accept it. This typically triggers a “Pre-Auction Auction,” where the offer becomes the opening bid and the auction date is brought forward. Contact me about an offer | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

What happens if my property is ‘passed in’?

If bidding fails to reach the reserve, the property is “passed in.” This is not a failure; it starts a negotiation phase where the highest bidder often gets the first right to negotiate. Most passed-in properties sell within 24-48 hours. Ask about passed-in strategies | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

What deposit do buyers pay at auction?

The winning bidder must pay a 10% deposit immediately after the hammer falls. This deposit is held in a secure, audited trust account for at least 10 working days. Ask about deposits | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

How much does it cost to sell by auction in NZ?

Additional costs include an auctioneer fee, which typically ranges from $500–$1,200 + GST. At Barfoot & Thompson, this fee is approximately $645 + GST for in-room auctions, separate from the standard commission. View all selling costs | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

Can first-home buyers purchase property at auction?

Yes, but they must be unconditional. This requires having finance 100% pre-approved and all due diligence (building inspections and LIM reviews) completed before the auction begins. First home buyer help | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

How long does an auction campaign typically last?

A standard auction campaign runs for 3–4 weeks. This timeframe provides enough room for intensive marketing, multiple open homes, and the completion of buyer due diligence. Get a timeline | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

Can I bid at an Auckland auction if I am overseas?

Yes, using the AUCTIONS LIVE platform. Verified buyers can register in advance and place bids remotely via a high-definition streaming interface that coordinates with the auctioneer in real-time. Get set up for online bidding | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

Is auction more expensive than a standard price listing?

The commission rate is identical regardless of the sale method. The only additional costs are the auctioneer’s fee and typically a higher marketing budget to create the urgency required for competitive bidding. Check fees | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

Is an auction sale legally binding?

Yes. An auction sale is legally binding and cash-unconditional the moment the hammer falls. There is no cooling-off period, providing the seller with immediate certainty. Get an unconditional sale | Call: 021 307 014 | Email: d.ryder@barfoot.co.nz

About the Expert

Darren Ryder is a Licensed Real Estate Salesperson (REAA 2008) with 13+ years of experience specialising in the West and Northwest Auckland auction markets.

Call: 021 307 014 Email: d.ryder@barfoot.co.nz

Last Updated: January 2026 | Verified by: Darren Ryder

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