Selling a Property

What is Sale by Tender? How the Sealed-Bid Process Works in the UK

Sale by tender, the sealed-bid process, is an alternative to a traditional open listing. Understanding how it works helps both buyers and sellers use it strategically.

Published: 16 Mar 2026 · Updated: 16 Mar 2026 · 5 min read

#HouseSelling#PropertyMarket#SaleByTender#SealedBid#PropertyPassportUK

What is Sale by Tender?

Sale by tender is a method of selling a property where interested buyers submit sealed written bids by a specified deadline. The seller reviews all bids and accepts the highest, though they are under no obligation to accept any bid. It is used when a property is expected to attract strong competitive interest, when a seller wants to transact quickly on a defined timeline, or when an estate agent wants to avoid protracted multi-party negotiations.

Informal Tender vs Formal Tender

Feature	Informal tender	Formal tender
Bid deadline	Yes	Yes
Binding on acceptance	No, standard exchange still required	Yes, contract signed with bid
Typical use	Residential property	Land, commercial, development
Buyer risk	Can be outbid; no certainty until exchange	Funds must be immediately available

**Informal tender (best and final offers)** is the most common form. Interested buyers submit their best offer by a set date. The seller selects their preferred buyer. Either party can still withdraw before exchange.

**Formal tender** is used for some development sites and commercial property. Buyers sign and submit a completed contract with their bid, the seller executes the contract upon accepting it, creating a binding agreement immediately.

How Buyers Should Approach a Sealed-Bid Process

Establish the maximum you would pay before submitting, do not inflate beyond genuine affordability
Obtain your mortgage agreement in principle before bidding
Check the sold price history of comparable properties on Property Passport UK before deciding what the property is worth to you
Consider including a short personal letter with your bid explaining your position, some sellers respond to certainty of completion over a marginally higher offer

Advantages and Disadvantages for Sellers

Creates a defined timeline; encourages buyers to submit their best offer upfront
Reduces protracted negotiation and is useful in a competitive market
However, it can deter buyers uncomfortable with the process
In an informal tender, the seller has no certainty until exchange

After a bid is accepted in an informal tender, the process reverts to standard conveyancing, the transaction proceeds to exchange and completion in the usual way.