Find an Agent Who Knows Tender Sales Inside Out
Selling by tender is a specialised sale method that requires an experienced agent to run effectively. The right agent will know how to build competition, time the campaign, and guide you through the tender evaluation process to achieve the best possible outcome.
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The Three Main Ways to Sell a Property
When it comes to selling your home, there are three primary sale methods available in Australia:
This guide focuses on the tender (expressions of interest) process — what it is, how it works, and whether it's the right method for selling your property.
What Is Selling Property by Tender?
A sale by tender — also called an expressions of interest (EOI) sale — is essentially a closed, silent auction. Rather than bidding openly against each other in a public forum, interested buyers submit confidential written offers by a specified deadline.
Each tender offer is submitted in a sealed envelope and kept secret from all other buyers. This means no buyer knows what their competitors have offered, which fundamentally changes the psychology of the bidding process.
The seller, with the guidance of their real estate agent, reviews all submitted tenders after the closing date and decides which — if any — to accept. There is no obligation to accept any offer, even the highest one.
How Does a Tender Sale Work? Step by Step
1. Property is marketed to prospective buyers
Like any sale method, the tender process begins with a marketing campaign. The home is advertised and open for inspections, allowing interested buyers to view the property before deciding whether to submit a tender. Because there's a fixed closing date, the campaign is typically more concentrated and intense than a standard private treaty listing.
2. Buyers prepare and submit sealed tenders
Interested buyers submit a written tender offer in a sealed envelope by the specified deadline. Offers can include conditions — for example, subject to building inspection approval or finance approval. These terms and conditions are incorporated into the official tender document prepared by the seller's solicitor.
3. No offers accepted before the closing date
Unlike private treaty, the seller cannot accept any offer before the tender deadline has passed. This enforced wait is part of what creates competitive tension among buyers.
4. Seller and agent evaluate all tenders
After the closing date, the seller and their real estate agent review all submitted offers. The seller can choose whichever tender is most favourable — not necessarily the highest price, but the combination of price and terms that best suits their needs.
5. Seller accepts, negotiates, or passes
If a tender is acceptable, the seller accepts it and proceeds to contract. If none of the tenders meet expectations, the agent can approach individual buyers to negotiate — asking whether they're willing to improve their offer or adjust their conditions. There is no obligation to proceed at all if the offers don't meet the seller's requirements.
The Advantages of Selling by Tender
No advertised price creates a neutral playing field
Because there's no listed asking price, buyers can't directly compare your property's value against others on the market. This removes the risk of being dismissed as overpriced before buyers have even inspected the home.
Confidential bidding drives stronger offers
With all bids kept fully confidential, buyers have no reference point for what competitors are offering. This means every buyer must submit their genuine best offer — there's no chance to sit back and outbid someone at the last moment. The winning tender can significantly exceed the seller's expectations as a result.
The seller retains control
Unlike auction — where the property must be sold on the day if the reserve is met — a tender gives the seller complete control. You can accept, reject, or negotiate with any bidder after the closing date. Knowing the highest figure offered also gives you a strong starting point for further negotiation if needed.
No ceiling on the sale price
In an auction, the highest bidder stops once the competing bidder drops out. In a tender, there is no ceiling — every buyer submits their maximum without knowing anyone else's number. This can produce results that far exceed what an auction would have achieved.
Cash transactions only
All tender transactions are completed in cash. Unlike auction, which can exclude buyers who don't have unconditional finance pre-approval, tender is accessible to buyers who are still arranging finance — as long as their offer includes appropriate conditions. This opens the process to a wider pool of serious buyers.
Only one interested party required
An auction needs at least two active bidders to drive competition. A tender sale can produce an excellent outcome with just one highly motivated buyer, since that buyer has no way of knowing they're the only one competing.
Defined campaign timeline
The fixed closing date creates a structured, time-limited campaign. For sellers who want a clear end date rather than an open-ended private treaty listing, the tender process provides that certainty while still allowing the market to determine the price.
Useful for unique or hard-to-value properties
For properties that don't fit neatly into market comparables — acreage, prestige homes, heritage properties, or properties with unusual features — the tender process can help establish true market value based on what motivated buyers are genuinely willing to pay.
The Disadvantages of Selling by Tender
Confidentiality can cut both ways
The same secrecy that can drive bids higher can also work against the seller. Without knowing what others are offering, some buyers may significantly undervalue the property and submit a lower bid than they would have in an open forum. There's no signal to buyers about the property's true market value.
Negotiating after close can be drawn out
If the tenders received are unsatisfactory, moving into post-tender negotiation with individual buyers can be a slow and uncertain process — potentially taking longer than the seller anticipated and requiring ongoing agent involvement.
Marketing costs can be significant
Because the campaign needs to reach as many qualified buyers as possible within a short, defined window, the advertising investment required is often higher than for a standard private treaty listing. A shorter, more intense campaign typically costs more.
Shorter campaign = smaller potential buyer pool
The concentrated nature of a tender campaign means some buyers — particularly those who see the property late in the campaign — may not have enough time to complete due diligence and prepare a considered offer by the deadline. A private treaty listing allows buyers more time.
Requires an experienced agent
A tender sale is more complex to run than a standard private sale or auction. The agent needs specific experience in structuring tender documents, building buyer competition within the campaign window, and evaluating and negotiating tenders post-close. Choosing an inexperienced agent for this method carries real risk.
Tender vs Auction: How Do They Compare?
Is Selling by Tender Right for You?
Selling by tender works best when:
- Your property is unique, premium, or difficult to value against direct comparables
- You want control over the timeline with a defined closing date
- You prefer not to advertise a price and want the market to determine value
- You're comfortable with the possibility of post-tender negotiation if offers fall short
- You have an agent with genuine tender experience to run the campaign
It may not be the best method if your property is straightforward and well-comparable, if you need maximum buyer reach over a longer period, or if marketing budget is a key constraint.
As with any method of selling your property, the best approach is to discuss tender in the context of your specific property, location, and goals with an experienced local agent.
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FAQs: Selling Property by Tender
What is a sale by tender in real estate?
A sale by tender (also called expressions of interest or EOI) is a confidential sale method where interested buyers submit sealed written offers by a fixed deadline. The seller reviews all offers after the closing date and decides whether to accept, negotiate, or pass.
How is tender different from auction?
In an auction, bids are made openly and publicly. In a tender, offers are submitted confidentially in sealed envelopes, so no buyer knows what others have offered. Tender also allows conditional offers (e.g., subject to finance), while auction typically requires unconditional bids.
Do I have to accept any tender offer?
No. The seller is under no obligation to accept any tender, even the highest one. If no offers meet your expectations, your agent can enter post-tender negotiations with individual buyers.
Can buyers include conditions in their tender offer?
Yes. Unlike auction, tender allows buyers to include conditions in their offer — such as subject to finance, building inspection, or other terms. These are incorporated into the tender document by your solicitor.
What are the costs of selling by tender?
Marketing costs for a tender campaign can be higher than private treaty due to the short, intensive campaign required. Commission is payable to your agent on a successful sale. Use our agent commission calculator to estimate your total selling costs.
How long does a tender campaign run?
Typically 2–4 weeks, though this varies by property and market. The campaign length is agreed with your agent and should be long enough to reach qualified buyers while maintaining competitive urgency.
What types of properties suit a tender sale?
Tender works particularly well for prestige homes, unique or heritage properties, rural and acreage properties, and any property that's difficult to value directly against comparable sales. It's less commonly used for standard residential properties in high-volume markets where auction or private treaty are well-established.
How do I find an agent experienced in selling by tender?
Compare local agents on LocalAgentFinder — you can review their sales history, methods used, and read verified reviews from sellers who've used them. Look specifically for agents with experience in your property type and price range.