classes of property - sale methods - stock and station agents

Classes of property advantages & disadvantages of the different methods of sale and when tender is most appropriate

There are 4 main methods of sale by stock and station agents:

  1. Private treaty

  2. Auction

  3. Tender

  4. Expression of interest

Each method has advantages and disadvantages. The advantages and disadvantages depend largely on the class of property involved.

Private Treaty









Classes of property most suitable for sale by tender are:

Formal or informal tender?

Most rural properties are sold by way of informal tender. Formal tenders are warranted for large, expensive properties often with a specilaised use or properties sold on behalf of a government department. If sold on behalf of a government department then the agent will need a copy anf follow the rules and procedures of that department.

What tender method should be used?

    1. Open tendering (tenders invited by public advertisement).

    2. The selective tendering method by which invitations to tender for a particular proposed contract are made following public advertisement asking for expressions of interest.

    3. The selective tendering method by which recognised potential buyers are invited to tender for proposed sale of subject property.

1 and 2 are the most used.

Expressions of interest are generally used instead of direct public tender as a means of ensuring the following:-

The tender system can work well with an initial expression of interest if there is a need to reduce or vet the number of tenderers. Expressions of interest are covered below.

The agent may be delegated by the seller to determine the most appropriate tender method.