The Garvan Boutique Hotel and Restaurant, owned by senior chef Joanna Lowery and her husband, Malcolm, formerly a police officer, has been on the market since late last year.
It is listed for sale at $880,000.
The South Otago area rural sales agent for Harcourts, Ian Mathieson, of Balclutha, said he was "highly confident" the property, at Lovells Flat, would be sold and believed it could be bought by a wealthy overseas buyer.
The homestead, which included seven bedrooms and four bathrooms, had always been considered the "gem" in the South Otago district and properties of its calibre rarely came on to the market, he said.
The sale price included 6.5ha of land, 2.8ha in "well-manicured gardens" designed by Alfred Buxton, of Christchurch.
The homestead was designed by Dunedin architect Edward Anscombe and built in 1915 by Peter Boyd for his wife, Jean, and their four children.
The Boyds' farm initially encompassed 1620ha of land surrounding the homestead, but was later subdivided.
Mr Mathieson said the owners had previously declined an offer to buy the property for use as a private home.
The New Zealand property market was generally quiet, partly because of the economic downturn, although rising dairy export prices and the continuing strength of the tourist industry were positive factors.
The property was listed in a "luxury portfolio" on an international internet site which featured luxury properties for sale throughout the world, including in the United States, he said.
The owners had undertaken significant renovations, including major work to the roof, but their skills were now also in demand elsewhere in the district.
Mrs Lowery is a cooking teacher and a former Sydney-based executive chef.
The Garvan was a well-known, high-quality hotel which was particularly sought-after as a venue for weddings.
The hotel had won high praise from overseas visitors, including tourists from the United States and Britain, and its next buyer could come from abroad, he said.
