- TENDER OR AUCTION -

If you are thinking of selling your property, Norfolk Island Real Estate can provide professional help in assessing the value of the property and provide clear advice as to the best way to sell it.

Selling by private treaty is the most common where a property is listed for a pre-determined figure, the property is placed on the market and promoted so to attract interest and a buyer. A sale by private treaty is effected upon agreement between the vendor and the purchaser. The vendor is at liberty to accept or refuse any offer. Another similar method is where the property may be offered for sale by negotiation, where there is no advertised price.

A Contract for Sale may stipulate that a property be offered for sale by Auction or Tender, and these methods can also be appropriate to the requirements of the vendor. Both those methods are conducted by the Agent under exclusive agency.

SALE BY AUCTION

An auction sale invites people to compete for the purchase of a property. In a pre-arranged auction venue, prospective purchasers make increasing offers until the property is 'knocked down' to the highest bidder. A bid at auction is an oral offer to purchase. On the fall of the hammer, the highest bidder is deemed to have made an oral contract for purchase. The purchaser then proceeds to sign and exchange the Contract of Sale. For all practical purposes, the vendor has a sale. There are advantages and disadvantages with the auction method and Norfolk Island Real Estate is best placed to advise you.

SALE BY TENDER

This method is often used for commercial real estate or unique properties under exclusive agency. As Agents, we advertise the property and invite intending purchasers to submit an offer or 'tender'. At a specified time, tenders close and the vendor considers all tenders received by the Agent. Tenders are usually submitted on a tender form which is placed in a sealed envelope and lodged in a tender box located at Norfolk Island Real Estate or submitted by email, post of facsimile to be received before tender closing time. A tender security amount (nominal amount) is lodged with the documentation as consideration for the tender and this is refundable in full if the tender is unsuccessful. The vendor has no obligation to accept the highest or indeed any tender.