Two leading real estate firms have gone head-to- head over whether auctions are a good way to sell homes.
First National, which has about 70 offices, has released a survey of its members which it says shows auctioning a home is the least effective way of selling.
But Barfoot and Thompson has hit back, saying auctions are a preferred method.
But meeting the market with a realistic price is far more important than the mode of sale, says Barfoot's director Peter Thompson.
The First National survey asked property agents within the group to rate the effectiveness of selling methods in their regions, and not just their own businesses.
About 72 % said individual negotiation between buyer and seller was the most effective, followed by tenders at 18%.
John Stewart, group general manager, said at a time when buyers were scarce, auctions might not be the best pathway because buyers must be able to unconditionally purchase.
Mr Stewart said another agency which took 10 properties straight to auction last month found there was not a single bidder.
First National, which has about 500 sales agents, conducts a monthly survey to measure key market indicators, and found while listings were up in March, buyer inquiry was lower than February.
"In times like this, where buyers are few and far between, the best price may well come from someone with a home yet to sell rather than from one of the few cashed up buyers in the market."
But Mr Stewart said auctions were considered the best method in just five locations - Manurewa, Rotorua, Waiheke, Tauranga and Timaru.
They were also working well for mortgagee sales.
"Mortgagee sale appears to be ideal for auctions and tenders can provide vendors a multi-offer situation, but mainly we are seeing properties get the best price through skilful individual negotiation."
Barfoot and Thompson director Peter Thompson "totally disagrees" with the survey findings.
The real estate group conducts the most property auctions in Auckland and Northland, where auctions continue to be the "preferred mode", he said.
"We're averaging 80 to 100 auctions every week, and about 35% to 40% are being sold under the hammer."
Properties not sold on the day were selling in the weeks after, he said, and that brought the numbers of properties sold by the group to between 70% and 75%.
"There are plenty of buyers out there ... there have been many instances in recent weeks where we have been selling properties between $30,000 and $40,000 above the reserve."
