Selling by tender
Buying or selling by tender is when prospective buyers prepare and submit confidential written offers for a property to the agent for the seller’s consideration. There is no reserve price (the lowest price the seller is willing to accept) but there may be a price guide. Buyers can offer less than this.
As a buyer
If you wish to submit a tender
Ask the agent for a copy of the tender documents. Read them carefully, including conditions or amended clauses. You will be asked to fill in a sale and purchase agreement and submit it before the close of the tender. Get your lawyer to check it before you sign. It’s a legally binding contract and you cannot simply change your mind after it has been signed. There will be a deadline for tenders to be submitted, usually to the real estate agency offices.
The sale and purchase agreement will include…
- Your offer
- A deposit cheque (usually five to ten per cent of the offer price) – the cheque will be returned if your tender is not successful
- Settlement dates
- Any conditions you are attaching to the offer