Informal tender is used when competition from buyers is strong, if a property requires intense modernisation, or if a specific closure date is required by the seller.
Properties have a guide price rather than an asking price. Buyers then submit offers by sealed bids up until a closing date, after which time the seller will open all sealed bids and select their chosen ‘best bid’.
Unlike formal tender, informal tender offers aren’t legally binding upon the seller selecting their best bid. Instead, the sale proceeds as ‘subject to contract’.