Property Sale By Tender – 2025 Guide [Pros/Cons]

Selling your home can be a time-consuming and emotional experience, so it’s vital to be well informed from the outset. You can choose from a variety of methods to ensure you sell to the highest bidder, but a method gaining in popularity is selling by tender.

Despite its popularity, a sale by tender can be risky, so it is important to understand the complexities of the tender process before opting for this route. With the right information in hand and a supportive, informed agent, you can ensure you choose the optimal method for selling your property and secure the highest sale price.

Next Step: Before deciding, it’s smart to talk with a local real estate agent who understands your area’s market trends and buyer behaviour. Compare top-performing agents near you. It’s free, quick, and helps you make a confident selling decision.

What Are the Main Property Sale Methods in Australia?

When selling a home in Australia, there are three main sale methods:

1. Private Treaty (Private Sale) – The property is listed with a price or price range, and buyers make offers privately through the agent.
2. Auction – A public event where buyers bid against each other, and the property is sold to the highest bidder (if the reserve price is met).
3. Sale by Tender – Interested buyers submit confidential offers by a set deadline, and the seller reviews all offers at once.

While most Australians are familiar with auctions and private treaty sales, the tender process is less common. However, it’s often used for high-end, unique, or hard-to-value homes particularly in luxury suburbs or regions with competitive buyer demand.

All three options have advantages and disadvantages and the right one for you depends on your unique situation. For this reason, it is often a good idea to find an experienced, local agent to help guide you along the right path to finding your ideal buyer. Click here to compare your local agents.

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What Does Sale By Tender Mean?

Like auction, a sale by tender relies heavily on the competition between potential buyers. The key difference lies in the secrecy of tender offers. The anonymous tender process ensures buyers do not base their offer on those of other buyers but rather on their own perceived value of the property.

For a great explanation on what sale by tender is and why you might want to consider it, watch this video by Harcourt Brock real estate, who specialise in luxury properties in South Australia.

To encourage competition, the seller always sets a deadline for offers. This often urges prospective buyers to put in their best offer immediately, as a looming deadline means they only have one shot at securing the property. These factors often help sellers achieve a higher sale price, but this is not always a guarantee.

How the Sale By Tender Process Works

Step 1: Property listing and marketing

• The seller lists their property with an agent, clearly stating it’s being sold “by tender” and including the closing date for offers.

• A marketing campaign (usually 3–4 weeks) promotes the home to targeted buyers through listings, social media, print, and open inspections.

Step 2: Open inspections and buyer interest

• Interested buyers attend inspections and gather information before submitting their tender.

• The agent answers questions, provides documentation (like strata reports or building approvals), and guides buyers through the tender form.

Step 3: Submission of tenders

• Offers are submitted to the seller using an official tender form, which usually includes price, interest rates and special terms and conditions. The tender documents are sealed in an envelope for secrecy and often include a deposit and tender submission fee.

Tender forms differ between states and agents; however, you can see a generic example here.

Step 4: Opening and reviewing offers

• The seller must wait until the due date has passed before viewing all offers together and deciding on the best one. The best offer does not always equal the best price. Offers are considered based on price and any conditional terms included in the tender document. One example of a typical term and condition is the presentation of a building approval certificate.

Step 5: Selecting the winning tender

• The seller can accept, reject, or negotiate with one or more buyers.

• Once accepted, the tender becomes a legally binding contract (subject to any cooling-off period allowed by the state).

Step 6: If no suitable offers are present, the seller can negotiate or reject all offers.

• A seller and prospective buyer may come to an agreed price that is above the initial offer, in which case the seller will decide to sell. If this doesn’t happen, the seller is free to begin the process again or choose an alternative sale method.

Is Sale by Tender Right for Me?

Sale by tender is usually reserved for high-end residential properties or unique properties with an indeterminable market value. However, the sale by tender method is not restricted to these cases and can be used in any situation where a seller feels it would be beneficial. A local agent with expertise in selling by tender can help determine whether this method is right for your particular situation. They will consider the following factors:

• Property type
• Location
• Current property market
• Urgency of the sale

A successful sale by tender is dependent on an effective marketing campaign. Prospective buyers must be made aware of your property within a relatively short timeframe and the campaign must generate a buzz to enhance the competition element. Engaging an experienced agent will also help you ensure an effective marketing campaign leading up to the tender submission deadline.

Advantages of Selling by Tender

The benefits of selling your property by tender are numerous. Depending on your unique situation, this method could bring you a high sale price and a quick, easy sale. However, be sure to read about the potential drawbacks below, as selling by tender doesn’t work for everyone.

Potential benefits include:

• Unbiased offers
  Properties offered for sale by tender do not normally include a sale price in the listing. This means buyers are unable to compare your home with others in the area and will submit an offer based only on their own perceived value of the property.
• Higher-than-expected offers
  As all offers are kept secret, buyers are unaware of the price other buyers are offering to pay for the property. This often leads to one or more offers that are substantially higher than other offers.
• Competitive-based offers
  Buyers may be encouraged to submit a higher offer when they notice many other interested parties inspecting the property.
• Limitless offer potential
  Bidding at an auction always stops when the competition stops. Therefore, offers are often higher when selling by tender, as this cannot happen. Prospective buyers must anticipate the value of the property and the offers made by other interested parties, which usually means they immediately offer the maximum they are willing to pay.
• Short, effective marketing campaign
  Selling by tender always involves setting a due date for tenders, usually in the near future. Marketing campaigns must be maximised for effectiveness during this short period, which often saves time and money by keeping the selling process short.
• True market value
  Some properties are quite unique and it can be hard to determine an accurate market value. For such properties, the tender process can indicate the true market value of a unique property for the seller. The seller can then adjust their expectations accordingly.
• Seller control
  The seller is not obligated to accept the highest offer and can, instead, use this knowledge for future negotiations. Sellers can extend the offer deadline whenever they like, which can help when there are fewer offers than expected. Sellers also have more control over marketing campaign costs by setting a deadline that limits advertising time and expenditure.
• Stress-free sale
  Sellers are not pressured to make an immediate decision, like they are during an auction. Instead, they can view the offers in a relaxed setting and take time to discuss all options with their selected agent. This reduces the possibility of a regretful sale and gives the seller time to consider what price and terms best suit their particular situation.
• Cash sale
  All sales by tender are cash sales. This means prospective buyers already meet finance requirements when they place an offer. Sellers can view each offer as a potential sale and will not need to spend time on prospective buyers who are unable to gain finance approval.
• Invisible competition
  At an auction, the competition is visible, so the price only rises to the desired amount when two bidders compete against each other. Contrary to this, the tender process only requires one interested party to ensure a potentially suitable offer because the competition is invisible. Interested parties are only aware of their own offer and must, therefore, submit their highest price to try and secure the sale.
• Access to more buyers
  Sale by tender creates a more comfortable offer process for prospective buyers who cannot or will not attend auctions. This often means sellers will receive offers from interested parties who would not feel comfortable bidding at an auction, thus reaching more potential buyers.

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Disadvantages of Selling by Tender

Despite the numerous benefits often associated with selling by tender, it is still considered a risky process. Having an agent to guide you can help significantly and ensure you minimise the risks involved when selling your home.

Potential drawbacks include:

• Uninformed offers
  The secrecy involved in selling by tender can sometimes be to the seller’s detriment because buyers are not informed about the true value of the property. This can lead to lower-than-expected offers and undermine your efforts to sell your home.
• Drawn-out sale process
  A suitable offer is not guaranteed and a seller can often be unsatisfied with the offers received. However, when an offer is close enough to the desired sale price, a seller may choose to negotiate further with that particular party. Although this offers another avenue for creating a sale, it can often be a long, drawn-out process and result in a time-consuming sale.
• Expensive marketing campaign
  Although marketing time-frames can be limited and, thus, advertising costs reduced, an intensive campaign can sometimes end up costing more. This happens when every possible avenue is explored to create as much hype about the property as possible in a very short time.
• Fewer prospective buyers
  A short marketing campaign, however intensive, reduces the time given to inform prospective buyers. This can sometimes lead to fewer interested parties and fewer offers, purely due to a lack of awareness of the property.
• Process ends in a no sale
  When no suitable offers are received, the process can result in the property being unsold. A no sale also happens when prospective buyers are not willing to further negotiate or when an agreed price cannot be met. Although sellers can restart the sale-by-tender process or choose an alternative method, the unsuccessful result is disappointing. It often means lost time, which can be important when a quick sale is needed, and wasted money.

What Happens If Your Property Doesn’t Sell by Tender?

Not every property sells during the tender process and that’s completely normal. Because tenders rely on buyers submitting their best possible offer upfront, sometimes the offers received simply don’t align with your expectations or the true market value of your home. When this happens, you still have several effective options to move forward confidently without losing momentum in your sale.

1. Negotiate Directly With Interested Buyers

Even if no tender meets your preferred price, you can open negotiations with one or more buyers who submitted offers. Many tenders start slightly below the seller’s expectations, and experienced agents can often bridge this gap through smart negotiation.
Your agent may:

• Contact the top bidders to discuss revising their offer.
• Highlight competing interest to encourage stronger offers.
• Negotiate improved settlement terms (such as shorter timelines or fewer conditions).
  In many cases, this results in a successful sale shortly after the tender closes.

2. Extend or Relaunch the Tender Campaign

If you feel the campaign didn’t reach enough potential buyers, you can extend the tender deadline or relaunch the campaign with refreshed marketing. This can be especially useful if:

• The property only recently entered the market and hasn’t had enough exposure.
• You’re selling in a slower season (like mid-winter).
• New buyers have just entered the market.
  Your agent may suggest minor changes to your advertising, property presentation, or pricing guide to re-ignite interest.

3. Switch to Another Sale Method

If tender doesn’t achieve the result you want, you can easily change your selling strategy. The two most common next steps are:

• Private Treaty Sale: This method lets you list your property with a clear price or price range, inviting open negotiation. It’s ideal if you prefer flexibility and ongoing discussions with buyers.
• Auction: Auctions can help if you want to create urgency and attract multiple competitive bidders. This works especially well if your marketing campaign has already built awareness.
  Your agent can guide you on which option is better based on buyer feedback and market conditions in your area.

4. Reassess Your Pricing and Presentation

If your property didn’t receive strong offers, it may be a sign that buyers perceive the price or presentation as mismatched. Work with your agent to analyse:

• Buyer feedback during inspections.
• Comparable sales in your suburb (CoreLogic and Domain are useful data sources).
• Your home’s presentation, photography, or staging.
  Making small adjustments like improving photography, repainting, or adding virtual tours can dramatically increase buyer interest the next time you list.

5. Use the Tender Results as Market Insight

Even if your home doesn’t sell by tender, the offers you received provide valuable real-world feedback on what buyers are currently willing to pay. This information helps you:

• Set a realistic price for a private treaty listing.
• Understand how buyers perceive your property’s value.
• Identify common deal-breakers or features that influenced offers.
  In other words, an “unsuccessful” tender isn’t a failure, it’s a detailed market test that gives you data to refine your strategy.

6. Stay Positive and Keep Momentum

Selling a home is emotional, and it’s easy to feel disappointed if your property doesn’t sell immediately. But remember: in a tender, only one strong offer is needed to create a sale. With renewed marketing, improved presentation, or a new strategy, many sellers secure a deal within a few weeks after the initial campaign.

Real estate markets move quickly, and conditions can shift even month to month. The key is to stay proactive, work closely with your agent, and use the insights gained from your tender campaign to your advantage.

Comparing Sale by Tender, Auction, and Private Sale

State Rules and Regulations

Each state and territory in Australia has its own property laws for tender sales. Always check your local government’s consumer affairs or fair trading website before proceeding.

• NSW – NSW Fair Trading
• VIC – Consumer Affairs Victoria
• QLD – Queensland Government
• SA – SA Government
• WA – WA Consumer Protection
• TAS – Tasmania Government
• ACT – Access Canberra
• NT – NT Government

Looking To Sell Your House?

We understand that choosing a method to sell your house can be difficult. There seem to be so many options and you might not know which is the best fit, especially if this is the first time you’re looking to sell.  If you are looking to sell your property, you should speak to a real estate agent about it. They’ll know about the market in your area as well as how much attention your property is likely to attract.

We can recommend top local agents who will be able to help you make these important decisions. They’ll also be able to tell you if they think that selling privately or selling by auction would be a better method for you. Compare top-selling agents quickly by visiting our homepage now.

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Related Readings

• What Is The Private Treaty Property Sale Method?
• Selling Property at Auction? – Pros/Cons & Tip
• Process of Selling a House – Step-by-Step Guide
• How to Sell Your Property
• How Long Does It Take to Sell a Property?
• Conveyancing Costs: Comprehensive Fees Guide
• 14 Expert Tips for Selling Your Home (and Getting the Best Price)