iKey Facts
- •The first developer to approach a vendor is rarely the highest bidder — typically 15-25% below market
- •Vendors who run a structured off-market process around an unsolicited offer lift the sale price by 15-30% on average
- •Five rules: acknowledge but don't commit, get an independent valuation, identify 3-5 likely bidders, run a tight 21-30 day EOI, anchor on planning-ready value
- •Verbal price discussions before written valuation always benefit the buyer
- •See companion: What Questions Should Landowners Ask Developers?
Why the First Offer Is Almost Never the Best One
A developer knocking on your door is doing so for one reason: your site fits their feasibility, and they would prefer not to compete for it.
The unsolicited offer is, almost by definition, a discount strategy. The developer is pricing the absence of competition, the speed of an off-market deal, and the seller's lack of information. In Brisbane practice, the first approach sits 15-25% below what a properly run process would deliver.
That doesn't mean the bidder is acting in bad faith — most are simply being commercially efficient. The vendor's job is to introduce competition without scaring the buyer off.
Rule 1 — Acknowledge, Don't Commit
Do not give a number. Do not say yes. Do not say no.
The correct response is:
"Thank you for the approach. We're not actively in market right now, but we'd be open to receiving a written expression of interest. Could you put your proposal in writing — purchase price, settlement terms, conditions, and the entity that would be buying?"
This does three things:
- Forces the developer to commit on paper.
- Buys you 7-14 days to organise.
- Avoids anchoring on a verbal number that benefits them.
Rule 2 — Get an Independent Valuation Before Negotiating
A market valuation for development purposes is not the same as a residential valuation. The two figures can differ by 50-100%.
Three ways to value a development site:
- Comparable sales — Recent transactions for similar sites in similar zonings.
- Residual land value (RLV) — Working backwards from end-product feasibility.
- Per-end-product — $/apartment, $/townhouse, or $/dwelling.
Get a development-specialist appraisal before responding to any number from the developer.
Rule 3 — Identify 3-5 Likely Bidders
Every Brisbane site has a small pool of credible developers — typically 3-5, occasionally 7-8 for hot suburbs.
A specialist advisor maps:
- Mid-tier locals (e.g., Sarazin, Aria, ROCC, Pellicano).
- Institutional / BTR operators (Mirvac LIV, Greystar, Cbus Property).
- Foreign capital (Goodwin Capital, Sekisui House, Hutchies).
- Apartment specialists active in your suburb.
- Niche operators (PBSA, healthcare, retirement).
Without this map, vendors are negotiating with one bidder.
Rule 4 — Run a Tight 21-30 Day EOI Around the Approach
"Why the First Offer Is Almost Never the Best One A developer knocking on your door is doing so for one reason: your site fits their feasibility, and they would prefer not to compete for it."
Speak with our team
ACRES provides expert property advisory across Australia.
Once you have a written offer + valuation + bidder map, run a short Expression of Interest campaign:
- Day 0 — Brief the 4-7 most credible bidders (including the original developer).
- Day 14 — Information memorandum distributed under NDA.
- Day 21-30 — Offers due in writing.
- Day 35-45 — Best-and-final round with the top 2-3 bidders.
- Day 60-75 — Signed contract.
This is the single highest-value action a vendor can take after an unsolicited approach.
Rule 5 — Anchor on Planning-Ready Value, Not As-Is Value
The unsolicited buyer wants to anchor on the as-is residential value of your property. The market value to a developer is the planning-ready value — what the site is worth assuming an indicative scheme can be supported.
The gap between the two on a typical inner-Brisbane site can be 2-4x. Vendors who don't understand this gap give it away.
What Not to Do
- Don't tell the developer your price expectation early — Anchors them low.
- Don't let them pay for the valuation — Their valuer's brief is their interest.
- Don't sign an exclusivity period without a deposit — Hands them a free option.
- Don't agree to "subject to feasibility" in a single-bidder deal — They walk after 90 days.
- Don't let them include your neighbour in the offer — Site amalgamation premiums should be yours to negotiate.
Will the Bidder Walk Away?
A common vendor fear: "If I push back, they'll leave."
In practice, credible developers expect a process. The bidders who walk away when a vendor runs a tight EOI are usually the bidders who were trying to underpay. Their disappearance is a feature, not a bug.
The genuine bidders stay, and they sharpen their offers.
How ACRES Runs This for Landowners
When a Brisbane landowner receives an unsolicited approach, we:
- Convert the verbal approach into a written EOI.
- Commission an independent development-specialist appraisal.
- Identify and brief the 4-7 likely bidders.
- Run a 21-30 day EOI.
- Negotiate the top 2-3 into a contracted deal.
Vendor uplifts on this five-step process average 15-30% above the original unsolicited offer.
Contact ACRES at https://acres.au/contact for confidential advice on an active developer approach.
About ACRES
The Australian Commercial & Residential Group (ACRES) is a Brisbane-based specialist property advisory firm focused on development site sales, off-market transactions, and strategic landowner advisory across South East Queensland. ACRES advises vendors on negotiation strategy, contract structure, and the specific risks that arise during long settlements and conditional contracts.
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/how-to-handle-unsolicited-developer-offers | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
