Informal tender - would it put you off?

[DenverDoer]

Putting our property on for sale via informal tender - does anyone have any experience with the process?

Wondered if as a 'standard' buyer (I.e. not a developer) you'd consider popping a bid in for a property, or be scared off?

I viewed a house for sale by informal tender. We didn't submit an offer because we didn't want to pay vendor's EA fees. So yes it did put me off.
However if the house had been perfect, I may have made an offer.. It's a sellers market though. In a buoyant market I doubt I would bid unless there was no compromises on the house

I'll be paying the EA fees; so hopefully that aspect won't be off-putting for buyers!

The house is awful, but there's land and a hell of a lot of potential.

In which case it wouldn't put me off

I don’t really see how it’s significantly different than how everything has been going to best and final offers the past couple years. We didn’t make a single offer that did go to B&F. I’d rather it just be that straightforward to start. Didn’t put us off at all.

By 'informal tender' do you mean 'sealed bids'?

Don’t even know what this means. Is it an auction?

Not sure what an "informal tender" is - but we put a bid in for our house as it was being sold via some sort of trust. The thing that must have put most people off was the fact that bids could still be submitted after ours was accepted and up until the point of exchange!
If your situation is different to this and once the bid has been accepted that is that, it would not put me off as there is nothing to lose.

Yes, it would put me off. If you want to sell the property sell it. Use either the sealed bid highest bidder process or auction if you want to get a market value and a quick sale. Don't mess people about with a process which may or may not result in a sale for the bidders. It's just annoying and often signals to me people who aren't serious about selling, but are testing the market.

I can't see what the benefit to this approach is?

Judging by the replies so far, half of your prospective buyers don't even know what it means.

I agree with Mindutopia, just market it in the normal way and go from there, depending on what offers you receive.

It can't be marketed in the normal way according to EA, it's either auction, informal or formal tender (the latter you would need to send in a 10% deposit with the bid).

I'm not sure if the offers are sealed but I don't think they are, I'll have to check!

Have you asked why it can't be marketed in the normal way?

@mrsrobin

The thing that must have put most people off was the fact that bids could still be submitted after ours was accepted and up until the point of exchange!

How is that any different to a 'normal' sake (in England)?

@MuggleMadness

Have you asked why it can't be marketed in the normal way?

@mrsrobin

The thing that must have put most people off was the fact that bids could still be submitted after ours was accepted and up until the point of exchange!

How is that any different to a 'normal' sake (in England)?

Well I suppose people gazump others, so I guess it is the same. A difference is the estate agent has to carry on actively advertising the property, whereas I guess if an offer has been accepted normally, it would be labelled Sold Subject to Contract.

Different because there's a set time and date to which offers can be recieved, so no gazumping - interested parties have a few weeks to visit the property, work out their offer, pop it in, outline the reasons they want the property/their circumstances and then we pick one - not necessarily the highest bid will be accepted. If someone had family links in the area for example that would mean more to me than a few extra thousand!

You haven't explained why It can't be marketed in the normal way.

It would put me off and I wouldn’t pursue it unless it was the property or location of my dreams. I’d rather put an offer on something and know where I stand immediately, even if there is (of course) the risk that things could change between that point and exchange of contracts.

The set timescale for sale might cause problems for some buyers who are in a chain. But it sound like you want / need to sell to a property developer one way or another.

Do you have a set timescale you need it sold in?
Is it habitable?

It wouldn’t make masses of difference to me as we always only ever offer what we are willing to pay/can afford. However I know some who would happily go up and over their initial bid just to get the house that they want upon being told they didn’t win the “race”. I think given your options you are more likely to reach the full potential via informal tender. We wouldn’t ever look at an auction property now unless it was 100% worth being run up by the neighbour.

Although why it’s not suitable for conventional marketing I will never know. Unless there’s some weird stuff legally or something then conventional marketing will sell pretty much anything in the current market. Especially if there’s land.

I still don't completely understand how this approach is really any different to how many houses are sold at the moment, side from setting a day/time when you want offers in by. Or how it avoids gazumping?