Hi all,
I read a few articles on here re Sale by Tender, but wanted to ask a few more general questions re this practice. As I understand it, this form of sale is more commonly used by those in business – e.g. builders, developers, etc. Is this correct?
I read it described on here as "an auction by the seller" (makes sense to me). As it forces buyers to make their "best offer" or potentially miss out, is this a way that can benefit the seller (in your experience)? Or is it a process that is "all too hard" for most, thus (severely?) limiting the number of buyers?
Have you bought/sold property using this method? Do you know of "average buyers" using this method? Is this a less costly process than using an agent?
The reason I ask is that I am looking to sell one property that has a particular "edge" about it that could appeal to a wide range of buyers. I also want to limit the number of viewings, as well as the expense, to provide the most benefit for me. Will a Sale by Tender achieve that for me? Or is there a host of "other expenses" (e.g. solicitor) that could take away any perceived gains?
Hope you can help,
Benny
The sale of residential property or average development sites by tender is unusual as buyers do not understand (or need to understand or care) what you are trying to achieve. Many agents would not advise you to sell this way either (as it is a misunderstood method).
If you have a high value site, then tender or EOI may be considered.
You will be up for more costs as you will be prepared to create a tender document (outlining how you are going to assess the tender – eg: only price, non-conforming tenders, what terms and conditions you are including eg – delayed settlement/leaseback/DA etc).
Hi Scott,
Thanks for taking the time to expand on that for me – I think I will give it a miss for now,
Regards,
Benny
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