Tenders for rich homes up
FLICK through the classified pages of your newspaper and you are likely to see more and more luxury houses for sale by tender.
The reason, say estate agents, is it allows property owners to attract the most appropriate buyers for the property.
And whether the luxury home was to be sold to an end-user or to a developer, this method of sale usually ensured a good price for the property, said Peter Feely, executive director with Chesterton Petty.
Sale by tender also allowed owners to carefully scrutinise bids to ensure the most appropriate buyer was found.
''In some cases, the seller may want to stay involved with the property through a joint-venture type of deal,'' said Mr Feely.
In other instances, he said the sealed-bid format allowed sellers maximum security in a volatile property market.
This system was appropriate where it was difficult to put a value on the property when the market was rising, said Mr Feely.
Frequently, it was difficult for the owner to determine the best possible use the luxury property should be put to. In some cases, the property might be more valuable for its development potential.
''Through the tender system, it is possible to attract the widest possible interest from developers and end-users,'' he said.
''The tender system allows the seller to explore the market.'' A good example of this was the Belvedere property on the Peak which sold for a record $276 million through the tendering process. It will be redeveloped into a number of luxury town houses.
The system is also good where the owner wants to tap into a restrictive market.
Mr Feely and Mr Child agreed the market was in a bullish phase and owners felt now was a suitable time to sell and get the best value for their property.