Page 20 - Tropic Magazine Issue 30

TROPIC • REAL ESTATE

Sale by tender

PROPERTY MARKET

Nadine Edwards from
LJ Hooker Edge Hill
discusses an alternative
to selling at auction in a
competitive market.

Whilst the current market conditions are Given the marketing campaign is for a set Tender sale benefits
ripe for selling through auction, there are period, usually four weeks, this can save
two other popular types of strategies used a seller both time and money and like an 1 A set marketing deadline
in Cairns to sell a property. Namely, a auction, accomplish a sale faster than
private treaty sale or a sale by tender. private treaty. 2 Allows a wider range
A private treaty sale is the most common Interested buyers submit written ‘tenders’ of buyers
sales strategy used by agents in Cairns, by the specified closing date and sellers
in which a property is advertised are not allowed to accept any tender prior 3 Obtains genuine
(usually with a list price) and prospective to the closing date. commitment from buyers
buyers are invited to make offers.
In a sale by tender, potential buyers will 4 Suitability to a
be invited to submit a written offer for a competitive market
property. It’s similar to an auction but is A tender is specifically
essentially a type of closed, silent auction. 5 Ability to compare
A sale by tender is often associated with suited to properties where multiple offers
commercial properties and development there is a strong likelihood
land, however, is also ideally suited to those buyers who are not satisfied with
high-end residential properties. A tender of substantial competition their inspections or who don’t meet
is specifically suited to properties where from buyers criteria for loan pre-approval prior to
there is a strong likelihood of substantial the auction date. A tender still allows
competition from buyers, and those an interested buyer to submit an offer
where it is difficult to establish a likely subject to finance or due diligence and
selling price due to the complexity or accordingly, opens the door to a wider
uniqueness of the property. Like an auction, these tenders are usually selection of potential buyers.
The marketing process is similar to unconditional. However, prospective On the closing date, with their agent’s
that of an auction, where the property is buyers can still submit conditional offers. advice, the seller can select the tender
marketed strongly and without a This is a critical difference between that is most favourable to them,
price guide. tenders and auctions. Auctions rule out considering the price offered as well as
the terms and conditions. There is no
obligation on the seller to choose one of
the tenders and if none are acceptable,
the agent can revert to the potential
buyers to see if any are willing to change
their conditions or offer a higher price.
As with an auction campaign, to ensure
a sale by tender has the best chance of
being successful, it is recommended to
choose an agent who has both experience
with the tender process as well as recent
sales of similar properties.

MORE: cairnsedgehill.ljhooker.com.au
196, 198 and 200 Pease Street, Manoora is for sale by tender

20 • Tropic • Issue 30