Buying Property By Tender: A How To Guide - Trade Me

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Buying by tender in NZ: What it means and how to win

What ‘for sale by tender’ really means for Kiwi buyers

By Hannah Hilliam (Content Writer) Last updated: 10 September 2025 | 4 min read

House hunting in New Zealand? You’ll come across a few sales methods, and “for sale by tender” is a common one. Here’s what the sale by tender process means and how to make it work for you.

What does ‘for sale by tender’ mean in NZ?

“For sale by tender” is basically a sealed-bid sale. You submit your best offer (and any conditions), hand it in by the deadline, and the seller considers all the offers at once and decides what to do.

How it works:

You submit a confidential, written offer by a set date.
No one else sees your number or terms.
After the deadline, the seller can accept one, negotiate, or decline them all.
The highest price doesn’t always win; clean conditions and timing matter (more on this later).
If you see “unless sold prior”, the seller can accept an offer before the deadline.
It’s legally binding if accepted, so have your finances ready and get legal advice.

Step-by-step: how to buy a house by tender

1. Register your interest with the agent

Always let the agent know you’re keen. If the property is advertised “for sale by tender (unless sold prior)”, the seller can accept an offer before the deadline. Registering ensures the agent keeps you in the loop.

Make sure to register your interest in the property with the agent.

2. Do your due diligence

Try not to feel rushed by the process. Before submitting a tender offer, do your homework:

Understand the property value by using tools like Trade Me Property Insights.
Visit the property multiple times.
Get a building inspection.
Have your lawyers check the LIM report.
Research the neighbourhood, schools, and amenities.

3. Submit your tender offer correctly

All tender offers in NZ must be in writing on a standard tender form, a legally binding contract. You can include conditions (e.g. subject to building inspection) or go unconditional if you’re confident.

Key points to know:

You’ll need legal advice before submitting.
Finance must be ready; tenders usually require a 10% deposit paid upfront.
Avoid putting in tenders on two homes at once; if both are accepted, legally obliged to proceed with both.

4. What happens after you submit an offer

Tender documents are usually held securely until the deadline closes, unless the property is sold prior.
Once the deadline passes, all offers are presented to the seller.
The seller has up to five working days to accept, negotiate, or decline.
If your tender isn’t chosen, your deposit is refunded.

You will submit your tender offer to the seller's estate agent.

Can there be negotiation after a tender?

Yes. While many buyers assume tenders are strictly “take it or leave it,” negotiation can still happen once the seller has reviewed all offers. For example, if your tender price is close to the seller’s expectations but the conditions aren’t ideal, they may come back to you to discuss changes. Likewise, if no offers meet the seller’s needs, they might negotiate with the strongest contender rather than rejecting everyone outright. It’s important to work closely with your lawyer or agent during this stage, as any agreed changes will be written into the sale and purchase agreement.

How to win a tender in NZ: some secrets to success

Okay, now we’ve got the process nailed down, let’s talk tactics – how are you going to give yourself the best chance of winning a tender?

Don’t be put off by crowds

Open homes can feel packed, but only a small slice of people may actually submit a tender. Focus on facts, not vibes: ask the agent how many tender packs have been issued, whether any pre-deadline offers have come in, and how many building inspections have been booked. That gives you a truer sense of competition than a busy Saturday viewing.

Offer your best price

Tenders are sealed, there’s usually no second round. Work out your walk-away number using recent comparable sales and stick to it. If the listing says “unless sold prior,” consider whether a strong early offer is worth making. Balance price with risk: don’t blow past your budget just because the home is popular, but don’t lowball either, as you might miss your shot.

Remember your budget when making or negotiating your offer.

Limit conditions

An unconditional offer can beat a higher-priced offer weighed down by tricky conditions. Get as much due diligence done upfront (finance pre-approval in writing, review the LIM, line up a building report) so you can either go unconditional or shorten timeframes (e.g., three working days instead of ten). Avoid “soft” clauses that add uncertainty (like long finance windows or sale-of-your-home clauses).

Use odd numbers

If your ceiling is around $820,000, consider $821,500 or $823,250. Small, non-round increments can separate you from near-identical offers and signal you’ve put everything realistic on the table.

Want to find properties for sale by tender?

Now that you know the sale by tender meaning, it’s time to put your knowledge into practice. Trade Me Property makes it simple to search for homes listed this way:

Head to Trade Me Property
Enter your preferred location and property features, then hit the big blue Search button.
On the results page, click Refine and scroll down to Sales method.
Select Tender to see only properties being sold by tender.

From character-filled villas to large lifestyle blocks, you’ll find a wide range of homes for sale by tender in NZ, all in one place.

Author

Hannah Hilliam

Hannah is a staff writer at Trade Me, contributing to Trade Me Property. Having bought, sold, and renovated homes herself, she knows first-hand how exciting (and overwhelming) the property journey can be. With a knack for making complex topics feel simple, Hannah focuses on sharing practical, down-to-earth advice to make daunting decisions feel a little less overwhelming.

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