Buying by tender or deadline sale
Tender is a form of marketing and selling a property through intensive advertising media designed to capture the maximum attention of customers within a set time frame. The process is a private and confidential means of purchasing and selling real estate to determine the true market value of the property at that time.
How should I approach the tender process?
The tender document, which is your offer, is completed and then deposited at our Property Brokers branch office and held secure until closing time. Every tender, once received by the salesperson, shall be irrevocable for four working days. The tender documents are different from a normal ‘Sale and Purchase Agreement’ and you may wish to seek legal advice before submitting your tender.
Can I submit a tender if I have to arrange finance?
Obviously, an unconditional, cash tender would be more attractive to the client and you can organise finance prior to submitting your offer. However, your offer may be conditional.
Can I submit a tender if I have a house to sell?
Yes, there are three options:
- You may make a tender conditional on the sale of your property; or
- If you are in a sound financial position you can arrange a bridging loan to cover any delay in settling your property; or
- You may offer on an unconditional basis but with a longer settlement date giving you time to sell and settle your property.
How do I decide how much to pay?
Naturally the more attractive the offer the more likely the chance of having your tender accepted. Although clients reserve the right to negotiate with the highest or any tenderer, in most cases a decision is reached on the tender day. For this reason, your submitted tender should be your best offer. A combination of your own instincts, market awareness and guidance from your salesperson will give you a good indication of price. Obviously, the price you tender is in direct proportion to your desire to own the property.
Can I buy before the tender closing date?
Yes. In most cases, you can. Property Brokers has a centralised database for each property, so please register your interest with the salesperson to ensure that you are notified in the case of pre-tender offers being called in.
The pre-tender offer must be written on a 'Sale and Purchase Agreement'. In the case of there being more than one offer, Property Brokers 'multi-offer' procedure will be followed.
What contract do I sign when making an offer by tender, and what are the standard conditions?
Your offer will be made on the standard tender document. This is available from your salesperson. You should have read and understood the tender documents. If you need to insert any conditions or vary the settlement date, do so. To ensure the correct wording seek assistance from your solicitor or agent. If your tender is accepted you are legally bound by the terms and conditions of the tender document.
Before signing any agreements, both the customer and client should seek legal advice.