For Sale by Tender???

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From: Miakat .


Hi all,

I'm relatively new to the property scene and have come across a property that is for sale by tender. Can someone let me know of any pitfalls I need to be aware of with this type of purchase. Also, what's the usual process/rules that go along with it. Is it the same rules as Private Treaty or Auction?

Thanks

Miakat

 

[Michael Croft]

Reply: 1
From: Michael Croft


Hi Miakat,

Tenders are a bugger of a way to buy property. Great for the vendor, a bit like a slow motion auction.

Tenders give the vendor time to assess the market and level of interest, but they can always withdraw from the process. Once you have submitted your tender you are usually locked in if the vendor decides s/he likes your offer. It effectively eliminates negotiation and removes the pressure an auction creates.

Once the successful tenderer is selected it's pretty much the same as private treaty. The tender docs should spell out the process for you.

What usually happens is you put time and effort in to determining a fair value only to be knocked off by an emotive buyer - just like an auction really. As a buyer I hate them.

regards, Michael Croft