Selling your home by tender

What does “by tender” mean?

The Real Estate Authority describes tender as a process where buyers submit confidential written offers to the agency before a specified deadline. REA also says the process is not defined in legislation: the tender document sets the actual rules.

Offers are usually opened after the deadline, but the document can permit a different process. It should say whether an early offer may be considered, whether the deadline may change and whether the property may be sold before closing. If a prior sale is possible, the advertising should make that clear, commonly with “unless sold prior”. Ask your lawyer to review the proposed document before the campaign begins.

Tender can be useful when a Tauranga home is hard to price because it is unusual, or when you want the market to respond without publishing an asking price. It is one option, not a shortcut to a premium result. Compare it with the other decisions in the Tauranga selling process before choosing your method of sale.

What goes into a tender offer?

A buyer can propose a price, deposit, settlement date, included chattels and conditions such as finance, valuation, a building inspection or the sale of another property. Settled explains that tender offers can be conditional and that a signed tender is a legal offer. The deposit amount and payment timing come from the tender and sale documents, not a universal rule.

You do not generally have to accept the highest tender, or any tender. Settled’s guide to methods of sale notes that the seller may negotiate after tenders are opened. The exact choices still depend on the document, so have your lawyer check any acceptance, counter-offer or changed term before you sign.

What happens from launch to decision?

1. Agree the tender rules. Have the lawyer review the document, deadline, prior-offer position and seller terms.
2. Launch the campaign. Buyers receive marketing, property information and the tender document.
3. Manage enquiries. The agent records interest, answers questions and helps buyers understand the submission process without revealing another buyer's tender.
4. Receive offers securely. Offers are kept under the process stated in the document.
5. Open and check tenders. Confirm signatures, deposit and required information.
6. Compare the complete offers. Review price, conditions, deposit, settlement, chattels and execution risk with the agent and lawyer.
7. Decide. Accept, reject or negotiate as the document allows.

Set the rules before marketing starts

• Decide whether you will consider offers before closing.
• Record whether the deadline can change and who must be told.
• Choose your preferred deposit and settlement date.
• Confirm which chattels are included or excluded.
• Prepare the property records buyers will receive.
• Agree who will be present when tenders are opened.

Ask the agent how early offers, deadline changes and document checks will be handled. REA says interested buyers should be notified if the deadline changes. Clear written communication matters because a late or inconsistently informed buyer can undermine confidence in the process.

Also agree what the agent may say about competition. Tender details should remain confidential; a buyer should not be told the content of another buyer's offer. Ask for a campaign report based on enquiry, viewing and document-request activity without revealing another person's tender.

Compare certainty as well as price

A higher price can come with a long finance condition, a small deposit or a settlement date that does not work for your next move. Place each offer's price, conditions, deposit, settlement date, requested work and chattels side by side. Our offer comparison worksheet is designed for that first pass.

Then talk through the trade-offs with your agent and lawyer. If the agent's explanation of tender has been vague, use the agent comparison guide to test their proposed campaign before signing the agency agreement.

What can go wrong?

The campaign may close without an acceptable offer. A buyer may misunderstand an early-offer clause or changed deadline if communication is poor, or a tender may be incomplete. The most avoidable seller mistake is treating the largest number as the best result without checking conditions, signatures, deposit, settlement timing and the likelihood of reaching settlement.

Keep the paper trail tidy, insist on clear updates and give yourself time to obtain legal advice before accepting or countering. Do not assume the tender date guarantees a sale date. Tender creates a defined decision point; it does not remove legal review, buyer conditions or settlement risk.