What is the difference between auction, negotiation, and tender?

Short answer: Auction = highest bid wins, no conditions. Negotiation = back and forth offers. Tender = sealed bids by deadline.

What this actually means in plain English

Auction: highest bidder wins on the day. No conditions. Risky for first home buyers. Negotiation: you make an offer, they counter, you agree. Most common. Tender: all offers submitted by a deadline, seller picks the best. Tender can include conditions unlike auction.

Key Facts

Auction: unconditional, highest bidder wins immediately
Negotiation: offer and counter-offer until agreement
Tender: sealed bids, seller chooses best by deadline
Auction riskiest for first home buyers
Tender can include conditions (unlike auction)
Negotiation most common and flexible

Example

Auction: Bid to $620,000, win, must buy unconditionally

Negotiation: Offer $590,000, counter $605,000, agree $600,000

Tender: Submit $595,000 with finance condition, wait for decision

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