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Original poster

sealed offers

23 replies

Forster · 06/03/2011 14:32

We have found the house we want, so however has another buyer. It is priced to sell we have both offerd asking price. Agent suggesting sealed offers how does this work and any suggestions re tactics?

OP posts:
bibbitybobbityhat · 06/03/2011 14:39

Check with the agent that the vendor is simply going to accept the highest bid and be done with it.
Ie. that they are not then going to go back to the person who made the lower bid and give them a chance to increase their offer ... ad infinitum (I think this is called a Dutch Auction).

So, if highest bid definitely gets the house, simply bid the most you are prepared to pay when everything is taken into consideration.

Do you really really really really really really want it or are you slightly caught up on the fact that it seems to be a bit of a bargain?

eveline22 · 06/03/2011 14:41

You need to think about what you feel this house is worth and whether you are in a good position. Do you have a maximum? Its whatever you can afford. Dont stretch yourself unnecessarily.

I know someone who went to sealed bids recently and their bid was accepted even though it wasnt the highest because they were in position to move quickly.
hth

theyoungvisiter · 06/03/2011 14:41

Google sealed bids - there are a few articles out there giving tips.

Basically though you put in your best bid in an envelope, they are both opened together at a pre-determined time, and the most attractive offer wins (this might not be the highest, they can take into account other factors).

I think the most commonly cited tip is not to offer a round figure - if the max you want to pay is £250,000 then offer £250,000.25p or something like that. It means it's much more unlikely that you will end up offering the same amount as someone else, or being pipped by 5pm or something.

And don't get carried away - the fact that it's gone to sealed bids shouldn't change what you think the property is worth.

theyoungvisiter · 06/03/2011 14:42

pipped by 5p that should have been - sorry, my browser auto corrected it for some reason!

theyoungvisiter · 06/03/2011 14:45

btw dutch auction is not what BBH describes. A dutch auction is where you go the opposite way to a normal auction, ie down until someone wants the item

dinkystinky · 06/03/2011 14:48

Do your research on other houses in the area and what they've sold for to give you a guide as to what would be a sensible price, gauge how much you want the house as well as what work needs to be done etc that you could tell and factor that into the price (and include that explanation in your offer) and try not to get too carried away when bidding

Nancy66 · 06/03/2011 15:38

We got our house though a sealed bid.

Request to be present when the bids are opened - so you can be sure it's done fairly - and, as mentioned, bid an unusal figure - I think you need to be even more original than theyoungvisitor suggests.

If your tip bid is £250k - make it £250, 043.88

Original poster
Forster · 06/03/2011 16:34

those tips are really helpful thank you

it is so difficult all this

We are chain free and the other buyer the EA says is in a similar position.

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theyoungvisiter · 06/03/2011 16:35

It's worth putting in anything else that could help your offer - like if you are pre-approved for a mortgage, how big your deposit is, etc etc.

Good luck! At least with sealed bids you'll know one way or the other fairly quickly.

Original poster
Forster · 06/03/2011 16:46

How much would you go/or did you go on price to those that got house on a sealed bid? tbh I think it is worth about A LOT more than asking price, I know the market very well where I am buying there is some real dross on at the price they are asking.

EA are reasonable and respected locally, and have said they do not do auctions, best offer will get house.

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Original poster
Forster · 06/03/2011 20:59

Ok how long is a piece of string Smile

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sunnylabsmum · 06/03/2011 21:32

we sold our house in 2009 by asking bidders to present best and final offer. We then picked the lower offer as no chain but stipulated exchange by X date and no reductions after survey. Pleased we chose them as it all went through well and the higher offer had their sale fall through, we later found out, and we would have lost our dream house

bibbitybobbityhat · 06/03/2011 21:46

Yes, its very difficult to say without any details.

I could tell you about an actual sealed bid transaction I have knowledge of, if it helps:

House on the market for £599.950. It was a beautifully decorated, finished and presented house with some gorgeous furniture, interesting artwork on the walls, lovingly tended garden, wow factor bathroom, gorgeous cat curled up asleep on the bed etc.

Two couples bid full asking price on the first day of viewings, which happened to be a gloriously sunny day in early summer.

Couple a. were first time buyers with no chain behind them.

Couple b. had a house on the market and said they had a bridging loan to tide them over because they really wanted this particular house.

On sealed bids, couple A bid £607,000 and couple B bid £605,000.

Couple A got the house, although they had a major wobble during the buying process and very nearly pulled out because the September 07 banking crisis hit just as they were about to exchange.

But they did go ahead and to this day have paid the highest price ever for a house in that terrace, by at least £12,000. So although they got the house, it wasn't necessarily a wise purchase for them.

CarGirl · 06/03/2011 21:51

Forster where abouts are you? My friends have finally had an offer on their lovely house which was put on seriously low for a quick sale, I wouldn't suprise if it went to a bidding war!

Original poster
Forster · 06/03/2011 21:54

Put in a good word for me pleaase... I am uber reliable Wink

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neversaydie · 06/03/2011 22:34

My Mum has just sold her house, and it went to sealed bids. The house went to the highest offer made by someone who was able to show that they had the money, and were in a position to move quickly.

I don't think that bids with odd numbers make any real difference tbh - the bid she accepted was a multiple of £5,000.

Original poster
Forster · 07/03/2011 12:32

after all that we got the house for the asking price

Such a relief, we have been in rented for 2 years and been foreced to move three times. Smile Over the moon.

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theyoungvisiter · 07/03/2011 13:21

hooray! So pleased for you (hope the survey is ok!)

lalalonglegs · 07/03/2011 14:02

That's great news - give solicitor and mortgage lenders periodic kicks to make sure it all goes through quickly, if the seller knows there is someone in the wings you really don't want to hang about.

bibbitybobbityhat · 07/03/2011 14:10

Great news! well done Smile.

Original poster
Forster · 07/03/2011 15:24

Thanks guys solicitors are instructed, lender we are on to them tomorrow. Shoudl be quick as we already have a portable mortgage (redeemed) that can come backt o life apparently..

But see my thread re the works that need doing!!

But sooo happy been desperate in housing for ages. Anythign nice sensibly priced goes, and there is lots of stuff v expensive or lots of stuff expensive but not nice. V V happy.

Modest house to bring children up in. Feel very lucky.

London house took one year to sell, renting with not nice LL and now finally have a home for the dc's

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CarGirl · 07/03/2011 19:49

So glad to read your happy news.

neversaydie · 07/03/2011 21:19

Fantastic. I hope it all goes smoothly from now on!

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