Making a Tender on a House – After the Tender Has Been Made
Last post we talked about how to put in a tender, and before that we explained just what a tender is. This post is all about ‘after the tender’. Sometimes with all that is going on with just making a tender, once the tender has been submitted you find yourself saying - What now? Well here is what to expect.
What Happens After the Tender is in?
The tender(s) received are all kept sealed (confidential) and are not opened until after the close of the tender. The tenders will be opened with the vendor present, this may not be until a few hours after the tender closes.
The details of each tender will be explained to the vendor as they are opened. If there is more then one tender, the agent will usually document the key points of the individual tenders as they are opened on a separate piece of paper for the vendor to review.
The vendor can choose to accept any tender (not necessarily the highest one), reject all the tenders, or enter negotiations with one or more of the tenderers.
If the vendor does not receive the price or terms they want, they may choose to start negotiations. The submitters of the top tenders can be asked to re-submit a new offer, or negotiations can continue with one. This can mean that tender negotiations continue well past the tender time/date.
When Will I Hear if my Tender is Successful?
You should hear back from your agent within a few hours of the tender close time. The agent will tell you whether or not you have been successful. If you are, you now have a contract with the vendor and can start working through your conditions (if any). If your tender has not been successful, your deposit cheque will be returned.
Your agent may come back to you asking for an improvement in your offer (more money, less conditions), there may be another offer very close to yours, or your offer is the most favourable offer, but the vendor is after a bit more i.e. the vendor wants to enter into negotiations with you, the agent may even come back to you with a countersigned agreement.
Think through any changes in your offer carefully, remember you already put in your ‘best offer’ when you submitted the tender!
What If I Don't Hear Anything About the Tender?
If you do not hear within a few hours the result of the tender, contact the agent and discuss the situation. Agents often hold off contacting any of the tenderers until a contract has been agreed.
In this situation make sure you are comfortable with what is going on. Ultimately, if the tender deadline has past, and the vendor is in negotiations with another party, your offer is now considered unaccepted and you are free to pursue other house purchase opportunities.