brackley

dont know if this happens throughout nz, however, when looking through web sites for property in wellington, many of the houses are up for tender. anyone any experience in this? the estate agents we spoke to in karori did'nt have a lot to say, but any advise or experience would be helpful forearmed is forewarned. thanks.

Nice Guy

Tender=you make basically your best offer for the property.

I believe it can be conditional, for instance subject to finance eg mortgage, or subject to the sale of your other assets eg house

A date and time is given for the tender and provided the amount is acceptable to the vendor with or without conditions then the place is sold.

Normally there is no price range, the agents won’t give out the amount of interest in the place etc so you are really going in blind, you could potentially pick up a bargain or alternatively pay far too much.

Buyer beware!

brackley

thanks nice guy, useful info, you have confirmed our thoughts that we have to be very wiery about this, hopfully we wont have to go through a tender. as said before the estate agents we none too helpful regarding this way of selling.

CWEMM02

Essentially, what is happening is the vendor is tranfering the pricing of the home to the buyer. For example, when we recently listed our house we examined with the agent a variety of houses recently on the market in our area. This included houses that had sold, not sold or still for sale. We examined the features of the properties and determined a price at which to list the property. Under the tender basis, the risk of not getting the price right is transferred to the purchaser and the hassel of negotiating once an offer has been made.

Batty

Find out the Capital Valuation and then the prices that other houses have been sold for recently in the same street. If you did want a house that was for tender and you knew these things you'd have a fairly good idea of what to offer. You can make the offer conditional on nearly anything that takes your fancy (solicitor's approval, accountant's approval, sale of your own house, builder's report etc.etc.) - of course no guarantee that the vendor will accept your offer then but a cash offer will look a lot more attractive than a higher one that's dependant on a purchaser selling their property sometime in the next, say, three months. This can and does happen so if someone selling their house accepts such an offer and the buyer's property hasn't sold by such and such a time on such and such a date then the whole deal can fall over - it need not go unconditional until the buyer's property has gone unconditional If you have any more questions ask away and I'll try to find out the answers for you - yes, I work for an Estate Agent but I'm not an agent or sales person and will always remain 'a buyer' at heart so if I can help I will.

livewire

When we were looking at houses we always used to shy away from those which were "Tenders" - you have to know the market quite well not to get your fingers burnt. You also have to know what you want out of a house in NZ - they can be so different from the ones back home. Get your eye-in first.

You may get lucky and get the recent local market statistics out of an agent. Or, you could log on to www.qv.co.nz and get them for a small charge depending on how much detail you want - it will give you details about the property, its sales history, recent sales in the area, capital value, etc.

If you really like one of these places you could always just say to the agent you'd like to make an offer straight off and bypass the tender process altogether. If you're in a strong position (ie. no house to sell) you may just get it without all the fuss of making a bid. The agent will be after their commission and a definate sale will be very attractive.

The other option is to wait until the tender period has expired, if there has been no sale agreed go in then and make an offer.

My preference would be to buy the land and have a house built - but that's another ball game altogether.

brackley

thanks everyone for your quick responses regarding tendering, much appreciated and very helpful

cottageinthesky

I sell real estate in Wellington - happy to give advice - perhaps PM me with any queries.