PROPERTY experts say the advantages of selling homes by tender far outweigh the risks.
Two Central properties are the only listings on the market at the moment that are being sold by tender.
A tender is essentially a private auction and the seller will accept tenders from prospective buyers and consider these various offers at a pre-specified date.
The offers are presented in a sealed envelope that are kept secret from other buyers.
A residential property on Peter Street, which is also commercially zoned, has been listed for tender by PRD Wagga.
Anthony Paul, commercial sales and leasing manager, said the biggest advantage of selling by tender is that the sale process is generally quicker than other methods such as auction and private treaty.
"The benefit to the owner is that the sale process is over in a four to five week period and the purchasers put in their best prices and then it's up to the vendor if they're going to accept the price," Mr Paul said.
"They can accept or refuse that price when the tender closes ... but if they put it for private treaty, it could sell on the first day or not until three months later.
"[Prospective buyers] put their tender in, sign the contract and provide a cheque for the 10 per cent deposit and then if the vendor agrees, they can sign the contract."
Mr Paul said tenders allow buyers to give their best price rather than at an auction, where people are just offering figures to beat the competitors.
"Tenders are used a lot more in commercial and industrial sales; it's not used a lot in residential unless it's a property that is sought after," he said.
"The property in Peter Street can be used as both residential and commercial; it's sought after by people wanting to live in Central or businesses in that street.
"There's not many risks because at the end of the day, the vendor can accept or reject the offers and then can choose to put it on the market for sale by private treaty if they don't get any tenders."
Fitzpatricks has the second residential property that is being sold by tender, which is located on Wollundry Avenue.
This listing includes a price bracket between $1.55 to $1.65 million, unlike the PRD listed property.
"It comes down to the agent, we feel in our strategy that it's best to give people a price guide or similar sale properties as buyers need some market comparison," Fitzpatricks director Shaun Lowry said.
"I don't think there's any risks with tenders, it's more strategy.
"You can submit an offer in writing with conditions, like making their purchase subject to a building approval or certificate."
Mr Lowry said these type of sales are more frequent with commercial sales that might be subject to a development application or council approval and also rural properties.