The 1880s villa in Careys Bay has been advertised by Edinburgh Realty, with a closing date of April 21.
The property has a rateable value of $325,000.
Born in 1931, Hotere is regarded as one of New Zealand's most important living artists.
He moved from Auckland to Dunedin in 1952 and, after several years' studying in Europe, settled in Port Chalmers in 1965.
Hotere moved to Careys Bay when his house and studio at Observation Point were demolished to make way for expansion at Port Otago in 1993.
Hotere has relied on a wheelchair since a stroke in 2002.
Hotere's partner, Mary McFarlane, has not responded to messages left by the Otago Daily Times.