Need advice on sealed bids - fast!

[chandellina]

We saw a rundown but ripe with potential house last night that is on for a very good price relative to its space and general quality.

Not suprisingly it's gotten other attention since coming (back) onto the market Wednesday, and offers are now going to sealed bids - today.

We were told there was already a bid at asking price, as well as a bid well below what we already put in (£10k off asking). We don't know the position of the full-price bidder but do know the seller is keen to settle because an earlier offer fell through and they have offered on their next house.

We are in a very strong financing position with more than half of the purchase price in cash and a mortgage in principle letter in place.

So what do we bid??

I wouldn't necessarily think you have to match the bid at asking price - but stress your position and your "advantages" in comparison with other potential purchasers.

We did the same thing about 18 months ago - we bid about 5% over the asking price (knowing that there were 5 other interested parties) but stressed our position - we were in rented accommodation, already had a mortgage in place, my husband was a solicitor so would have day to day contact with the transaction (to speed it up), I think we set out that we would aim to complete within 6 weeks, said we wanted it as a family house etc rather than a development just to sell on (it had been the sellers house for 40 years) etc. We got it even though we weren't the highest bidder.

Good luck

thanks, that's really useful.

we didn't get it and i am kicking myself now! we put in over asking price but were apparently beat by quite a lot. Even if we'd gone higher, we wouldn't gone as high as was suggested to us as the winning bid so we were doomed to lose .... :(

well, you know you gave it your best shot and couldn't have done more. There will be other houses.