What is a real estate tender?
A tender is a method of selling or buying real estate, whereby interested parties make an offer on a property using tender documentation.
A tender form will contain details such as the legal description, the chattels that are included with the purchase, the settlement date and the required deposit.
A completed tender is placed in a sealed envelope and held securely in a tender box until the close of the tender.
Can I submit a tender with conditions?
Yes, you can. If you have just started looking at property, sometimes you need time to organise things. Some examples of a condition could be finance, insurance, a builders report, the sale of a house, or a valuation. An unconditional offer on the other hand is going to be more attractive to the owner of a property, so try to get your finance and other due diligence sorted before hand.
We recommend you seek legal advice before entering into a binding contract.
How do I decide how much to pay?
Your sales consultant should be able to provide you with statistics of recent sales that are comparable to the property you are looking to buy. They will also be able to give you a price indication.
We recommend putting in your best offer. Most people don’t like the thought of overpaying, and may offer less than they can afford. However, often they lose the opportunity to negotiate with the owner because someone else was prepared to offer more.
Try considering this example: if you found out you missed out on a property by $5k - $10k, would you have been prepared to pay more? Or would you be happy to let the opportunity pass.
Put your best offer forward.
When will I hear back?
In most situations a decision is made on the day, however, a vendor can have up to five (5) working days from the closing of the tender document to make a decision. Please consider this when submitting a tender.
If a reasonable amount of time has passed and you have not found out if you are successful or not, feel free to contact the sales consultant.
If your tender is accepted, you are legally bound by the terms and conditions set out in the tender documentation approved by the Auckland Law Society of New Zealand and REINZ.
We recommend you seek legal advice before entering into a binding contract.