A tender is essentially a silent auction.
It can help you make a quick sale by a certain deadline, without having to drop your price.
The seller accepts offer from prospective buyers and will consider the offers at a pre-determined date.
The offers are presented in sealed envelopes and not disclosed to other buyers.
Sellers are not allowed to accept any offer before the pre-specified date.
After the closing date, the seller and their agent go through all the submitted tenders and the seller can choose the most favourable offer.
There is no obligation to choose one of the submitted tenders and if none of them are acceptable, the agent can go back to the potential buyers, to see if any will change their offer and/ or conditions.
What are the main advantages of selling by tender?
• buyers can’t compare your home to others on the market
• complaints of over-pricing are not likely
• potential buyers cannot base their offer on what others are bidding
• the seller retains control over the selling process
• sellers can leverage the impending closing date in an intense marketing campaign
• sellers can save money by not having an over-blown, staggered marketing campaign
• the tender bidding process can help indicate true market value of the property
• the competitive nature of the process can cause interested parties to bid higher than they normally would.
• Tender transactions are completed in cash
• Sellers only need one interested party and sellers tend to feel less pressure because they don’t need to make immediate decisions, unlike at an auction
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Sunday, 24 March 2019