Buying or selling by tender is when prospective buyers prepare and submit confidential written offers for a property to the agent for the seller’s consideration. There is no reserve price (the lowest price the seller is willing to accept) but there may be a price guide. But you can offer less than this, and who knows you might get lucky.
This process is rather painful, it means you have to put in a blind offer. Then just hope that you are either the highest offer, or that you somehow pull on their heartstrings.
Ask the agent for a copy of the tender documents. Read them carefully, including conditions or amended clauses. If you want to put an offer in you will need to fill this in and submit it before the close of the tender. The date that the tender closes will be explicitly stated in the tender documents. On this date the real estate agent will present all of the offers to the seller, and the can choose the one they like. They don’t have to accept an offer, and don’t have to choose the highest offer. Make sure your lawyer reads the tender document before you sign. It’s a legally binding contract and you cannot simply change your mind after it has been signed.
If your tender is accepted, you are are now in contract with the seller and can work through any of your conditions towards settlement. If your tender is rejected you are no longer under any legal obligation and are free to pursue other purchase options. The seller can seek, through the agent, to negotiate with any unsuccessful buyer with the aim of reaching agreement on a sale/purchase. It is up to the buyer if they wish to do this.
More information on Tenders can be found at: