The Background
Tenders have long had a place in the commercial real-estate and business world, but in recent years their use as an innovative method of selling a home has become increasingly popular.
In the simplest terms, a tender is like a silent and private auction. The competition and excitement of an auction is all there, without any of the stress and pressure that comes with public bidding.
Buying and selling by tender involves a period of marketing, for the market to gather interest and information on the property, with a closing date set where the interested parties submit their ‘tender’.
Facts & Figures…
Maria Selleck Properties has a clearance rate of 96.55% on all properties sold ‘by tender’ since 2012. Allhomes’ Andrew Wilson reported an auction clearance rate of 62.5% in 2015 and 57.1% in 2014 across all Canberra agencies.
Since December 2012, Maria Selleck Properties has achieved an average selling price of $1,113,793.03, selling ‘by tender’, for her clients across Canberra and beyond.
Buying by Tender
1. Interested parties are invited to inspect the property during the marketing period
2. Buyers gather research and organise their finances
3. The seller sets a reserve price on the day the tender closes
4. Buyers submit their best offer with a 10% deposit and signed copies of the contract of sale and tender conditions, on or before the tender date
5. The agent takes these offers to the seller for their consideration
6. The top three buyers are privately given a final chance to re-consider their offers
7. The successful tender is considered ‘exchanged’
Selling by Tender
Selling by tender is even easier than purchasing by tender. A carefully tailored and targeted, intensive marketing campaign will raise the profile of your property and attract the maximum number potential buyers to your property.
Much like an auction, the market sets the tone and the excitement for the end result. Unlike an auction, no crowds of people congregate in the yard or the local hall. The stakes are not riding on the skill of an auctioneer or one high-pressure, public event.
Instead, a skilled negotiator gathers and liaises with the maximum number of truly interested parties – parties ready to purchase. Buyers find the process just as appealing as sellers. They submit their best offers. At which point, you have the chair. Your agent will negotiate the best possible result, with great care and on your advice.