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

“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.

• 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.

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.

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.

• 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.

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.

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?

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.

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. 

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). 

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.