Buying by Tender

Buying a property by tender involves submitting a confidential written offer by a specific deadline. This process gives you the flexibility to include conditions, but requires careful preparation to ensure your offer stands out. Discover our step-by-step guide to successfully navigating tender sales in the Whangārei real estate market.

What is a 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 but there may be a price guide, and buyers can offer less than this.

Before Tender Day

• Inspect & Research: You can inspect the property as many times as you like prior to the tender. Ensure you understand the market and have a feel for what similar properties are selling for.
• Finance & Advice: You may make your offer conditional upon bank finance. We encourage you to seek legal advice and have your solicitor check the tender documentation and title of the property before signing any offers.
• Tender Documentation: Ask the agent for a copy of the tender documents and read them carefully, including conditions or amended clauses. A tender sale and purchase agreement will include your offer price, any conditions you are attaching to the offer, settlement dates, and note that a deposit of 10% is payable upon acceptance of your tender. It’s a legally binding contract and you cannot simply change your mind after it has been signed.

Buying Prior to Tender Marketing materials must make it clear if the property can be sold before tender. If the property can be sold prior to tender, prospective buyers can register interest with the salesperson and ask to be informed if someone else makes an offer before the tender date. They then have the option of making an offer too.

Making an Offer & Outcomes All tenders are confidential and placed in a sealed envelope in the tender box located in our office. On tender day the tender box is opened and we provide all tender offers to the seller who can assess all offers and conditions and decide which, if any, they want to accept. If a tender offer is accepted, the buyer is now in a contract with the seller and can work through any conditions towards settlement. If rejected, the prospective buyer is under no legal obligation and free to pursue other purchase options.