Real Estate
6 August, 2025
Sale by tender explained
THE ‘sale by tender’ process is a method of sale traditionally more common with commercial real estate and the luxury property market.
When properties are unique, it can be difficult to determine the exact value because nothing of that calibre, quality, size, style and location has been sold in the area before.
As prices continue to rise, agents and buyers are finding it more challenging to accurately predict the market, so we have seen an increase of this method of sale in the traditional residential market often advertised as ‘Best offers by’.
Properties being sold by tender do not include a guide sale price. This means buyers submit unbiased offers based on their knowledge of the market and their own perceived value of the property.
It can be a more comfortable process for prospective buyers who may not like the intensity of an auction environment.
Buyers are encouraged to submit serious offers and not to hold back as there may not be another opportunity to make a further offer.
The highest offer doesn’t always secure the property, so it’s important to remember that conditions and timing are also important factors to consider.
– Sean Thorpe is sales director, auctioneer and founder of the Paradise Property Group
