Buying by Informal Tender

[Freyfreysmum]

Does anyone have experience of this or can submit some words of wisdom or anything that will help us. We know 6 offers have been put forward, and we know the details of the solicitors dealing with the sale. Other than that we are just sooo keen to buy this property! Advice please x

[goldenpeach]

Is this similar to written bidding process? We are experiencing this and not liking it one bit as we are not comfortable offering what they have imposed since the property needs updating.

[ABetaDad]

Informal tender is the process which most people experience when they buy a house. Different interested parties make offers at different times until the vendor accepts one.

It is not like 'sealed bids' or 'final written offers' which usually involves a specific deadline and the written offers are then opened and the winner is announced with the highest bid.

[goldenpeach]

Thanks Abetadad, there is a bit of confusion on forums as I searched for it and the expression is also used when bids are involved... Your explanation makes more sense as bids do strike me as formal.

[Freyfreysmum]

Just to clarify, an Informal Tender Does involve sealed bids. I have now received a lot of info on it and am much better informed! The agent and the solicitors then open all at the same meeting and decide which is the best bidder, this does not mean the highest, it could go on a slightly lower bid but by a cash buyer ready to move.

[goldenpeach]

Ironically we found out our bid result today, we were not successful and we were the only cash buyer, so don't count on it! The chained person who offered well over asking price won. It really depends on the market where you are, if good properties are scarce, then there are plenty of desperate bidders.

[ABetaDad]

Interesting. The chained buyers always offer the most as they expect to get a good offer on their property and then just drop out later. This happens a lot where we live and apaprenlty sold properties come back on 3 - 4 month later.

The vendors are stil too greedy to see a cash buyer is a certainty worth having.

[goldenpeach]

The interesting thing is that we offered 4 per cent below asking price when there was an offer 5 per cent above asking price and our bid was around 10 per cent under. So it wasn't that a cheeky offer as we wanted the house. Ironically a house across the road sold for 8 per cent below our offer, it had one less bedroom but a bigger downstair and a huge south facing garden. The problem seems to be very few houses on the market.

[goldenpeach]

I mean around 10 per cent under successful bid as the estate agent asked for revised offers higher than the previous higher offer.

[Freyfreysmum]

Thanks everyone, goldenpeach sorry it didnt work out for you, I hope things go well for your next purchase. We submit our paperwork on Tuesday and will hold our breath. x out of interest we have been told to allow 14 days for the tender process itself, and then 7 days for a decision to be made. Was this the case with you or was it quicker.

[goldenpeach]

One week only for us out of a two week process.