by Grant Wakelin
The Deadline Sale is similar to a Tender, really a variation of the tender process. With a Deadline Sale the property is offered for sale with no price, but with a deadline upon which offers need to be submitted (for example, in four weeks) on the basis that the owners/sellers reserve the right to accept an offer at anytime before then.
The idea is to create competition within a timetable and process predefined by the seller. For the owner, this means they can:
- Attract a high level of interest through an intensive marketing programme.
- Create urgency as a result of a fixed time frame for offers.
- Provide the opportunity for a motivated buyer, prior to the deadline, to get in quickly and present the owner with a favourable offer.
- Attract a wider pool of buyers (not just those in a cash position)
- Invite interest on seller terms without eliminating the purchaser's ability to include conditions that are important to them.
- Have buyers knowing they are competing when there are multiple parties bidding, but offers from buyers are confidential - they are not public like an auction - so the purchase price is determined by the final purchaser not the underbidder.
- Review options/bids in their own time without the pressure to make immediate, pressured decisions.
- Negotiate with one or more bidders if the offer/s are not acceptable
For the Buyer there are benefits too and they have the ability to:
- Compete for properties if they are not in a position of cash - for example first home buyers who need to spend money on valuations, bank approvals in order to bid at an auction
- Include conditions required/desired as appropriate.
- Buy immediately rather than having to wait until the submission day.
The Deadline sale creates buyer competition, with a wider pool of potential purchasers, on the seller’s terms. So, what works for you?
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