9 Tips for Making a Winning Offer by Tender
Buying a home by tender is one of the more flexible and private ways to purchase property in New Zealand. Unlike auctions—where everything is public and moves fast—a tender gives you time to do your due diligence, attach conditions if needed, and craft a strategic offer. But don’t let that flexibility lull you into complacency. Winning a tender comes down to preparation, attention to detail, and making your offer as appealing as possible. Here’s how to maximise your chances.
Know the Tender Process Inside Out
A tender is a confidential written offer submitted before a deadline. All offers are sealed and presented to the seller together, who can then choose to accept, reject, or negotiate further. If a property is listed “for sale by tender (unless sold prior)”, the seller can accept an early offer before the deadline—so it pays to register your interest with the agent and ask to be notified if another offer is submitted early. Because there’s no public bidding, you won’t know what others are offering, which makes market research and a compelling proposal even more critical.
Do Your Due Diligence Early
Tender offers are legally binding the moment they are accepted. This means all your checks must be done before submitting an offer. You should conduct a building inspection, review the LIM report, have your solicitor check the title and legal documents, and confirm the chattels included. If you’re using KiwiSaver for the deposit, contact your solicitor early. The funds will be paid directly into their trust account and can’t be accessed personally. If you can’t complete all your checks, make sure to include well-worded conditions with short timelines—such as a five-day finance clause rather than a standard 15 days.
Get Your Finance Sorted in Advance
Tenders favour prepared buyers, so mortgage pre-approval is essential. Work with a mortgage adviser to confirm how much you can borrow and whether the bank will approve this particular property. If you're relying on KiwiSaver or a First Home Grant, ensure the timing of fund release aligns with the deposit and settlement dates in your offer. The more confidence the seller has in your ability to settle, the stronger your offer.
Put Yourself in the Seller’s Shoes
Price is important, but it’s not the only thing that matters to the vendor. Consider the broader terms—like the settlement date or the number of conditions in your offer. If you can accommodate the seller’s ideal settlement timeframe or provide flexibility, that may outweigh a slightly lower offer. Remember, a cleaner offer with fewer strings attached can often beat a higher bid that comes with complications.
Make Your Offer Stand Out
Since tenders are confidential and you don’t know what others are offering, you need to be strategic. Avoid round numbers that everyone else might be using. Instead of $800,000, consider offering $803,200. It signals to the seller that you’ve pushed to your limit and taken the process seriously. Additionally, a personal letter can make your offer more memorable. While not always persuasive, sharing who you are, why you love the property, and your intentions for it might just tip the scales in your favour.
Understand the Legal Implications
Tender documents are not the same as standard Sale and Purchase Agreements. They are legally binding once accepted, and often carry different terms. Always have your solicitor review the documents before you sign. You’ll usually need to include a 10% deposit with your offer, which is refunded if you’re unsuccessful. Importantly, never submit offers on multiple tender properties simultaneously—you could end up legally committed to more than one.
Build Rapport with the Real Estate Agent
The agent works for the seller, but a strong relationship can give you valuable insights. Let them know you’re serious and ask about the seller’s circumstances. Are they moving overseas and need a quick sale? Have they bought elsewhere? This can influence your strategy. Sometimes, agents may even hint at whether your offer is competitive or if you're the only one bidding—which can shape your final figure.
Don’t Be Intimidated by Open Home Crowds
It’s easy to be discouraged when a popular property draws big open home crowds, but many of those attendees aren’t actually planning to submit an offer. Some are neighbours, others are just browsing, and many won’t have their finance ready. Often only a few serious offers are submitted by the deadline. If the property fits your needs and budget, don’t be afraid to go for it—you might be the only contender.
Stay Engaged After Submitting Your Offer
Once your tender is submitted, remain accessible and responsive. The agent or seller may come back with questions or a counteroffer, and quick communication could make all the difference. If your offer is declined, request feedback and use it to strengthen your next one. Every tender process is an opportunity to learn and improve.
The Bottom Line
Winning a tender isn’t about gambling on the highest number—it’s about crafting a confident, considered, and compelling offer. By preparing your finances, completing due diligence, and presenting your offer in a way that makes things easy for the seller, you put yourself in the best position to succeed. With the right advice and preparation, you can navigate tenders with confidence—whether it’s your first home or your next investment.
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