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    • pepper77
    • By pepper77 30th Nov 17, 12:44 PM
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    pepper77
    Sealed bids.
    • #1
    • 30th Nov 17, 12:44 PM
    Sealed bids. 30th Nov 17 at 12:44 PM
    My son viewed a property last week (in the evening), he is a FTB with a 50%+ deposit.
    The next day the estate agent rang him and asked whether he was making an offer, so he offered the full asking price(a little premature I thought).
    He has been informed that he now needs to make a full and final offer by Wednesday next, with proof of deposit and proof of mortgage.
    I dont trust estate agents (same agency screwed me over 30 years ago ), is this sealed bids mullarky common practice?
    Any advice is welcome.
Page 1
    • eddddy
    • By eddddy 30th Nov 17, 12:56 PM
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    eddddy
    • #2
    • 30th Nov 17, 12:56 PM
    • #2
    • 30th Nov 17, 12:56 PM
    I wouldn't say going to sealed bids is common practice, but it happens.

    As always, you just offer what you're happy to pay. There aren't usually any formal rules. The seller won't be bound to accept the highest offer, or any offer etc.

    (Some people make a sealed bid, and if they're unsuccessful they try going back and offering more. Sometimes that works, sometimes it doesn't.)
    • POPPYOSCAR
    • By POPPYOSCAR 30th Nov 17, 1:05 PM
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    POPPYOSCAR
    • #3
    • 30th Nov 17, 1:05 PM
    • #3
    • 30th Nov 17, 1:05 PM
    We do not trust estate agents either.

    We viewed a property recently that was sealed bids only.

    To put in a bid there was a form to fill in.

    You had to state if you were a cash buyer getting a mortgage, selling a house etc.

    They also wanted bank statements etc. to prove it all given in with the bid.

    There were several builders also viewing at the same time ,who obviously knew the etstate agent well.

    We could not see the point in the end in giving our private information to an estate agent when in all likeliehood we had a fair idea of what would happen.
    • eddddy
    • By eddddy 30th Nov 17, 1:24 PM
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    eddddy
    • #4
    • 30th Nov 17, 1:24 PM
    • #4
    • 30th Nov 17, 1:24 PM
    There were several builders also viewing at the same time ,who obviously knew the etstate agent well.

    We could not see the point in the end in giving our private information to an estate agent when in all likeliehood we had a fair idea of what would happen.
    Originally posted by POPPYOSCAR
    I guess you mean that a dodgy EA might favour the builders - perhaps by telling them what others had offered etc.

    But that's exactly the same whether the EA takes 'verbal offers' or 'sealed bids'.

    In some ways, if you distrust the EA, 'sealed bids' are better than 'verbal offers', because...

    To put in a bid there was a form to fill in.
    Originally posted by POPPYOSCAR
    ... there is a paper trail showing what everyone has offered etc, so there is less scope for the EA to mislead the seller.
    • POPPYOSCAR
    • By POPPYOSCAR 30th Nov 17, 1:29 PM
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    POPPYOSCAR
    • #5
    • 30th Nov 17, 1:29 PM
    • #5
    • 30th Nov 17, 1:29 PM
    I guess you mean that a dodgy EA might favour the builders - perhaps by telling them what others had offered etc.

    But that's exactly the same whether the EA takes 'verbal offers' or 'sealed bids'.

    In some ways, if you distrust the EA, 'sealed bids' are better than 'verbal offers', because...



    ... there is a paper trail showing what everyone has offered etc, so there is less scope for the EA to mislead the seller.
    Originally posted by eddddy
    No not really.

    Once the bids are in you cannot make a higher offer.

    You can with a verbal offer.
    • Surrey_EA
    • By Surrey_EA 30th Nov 17, 1:31 PM
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    Surrey_EA
    • #6
    • 30th Nov 17, 1:31 PM
    • #6
    • 30th Nov 17, 1:31 PM

    Once the bids are in you cannot make a higher offer.
    Originally posted by POPPYOSCAR
    Yes you can, it makes no difference.

    Until contracts are exchanged you are free to make whatever offer you wish, and the offer must be put forward to the vendor, unless the vendor has informed the EA not to put forward offers below a certain level.
    • Quizzical Squirrel
    • By Quizzical Squirrel 30th Nov 17, 1:51 PM
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    Quizzical Squirrel
    • #7
    • 30th Nov 17, 1:51 PM
    • #7
    • 30th Nov 17, 1:51 PM
    From what I've seen, it's just a dramatic term to create excitement in the sale.
    A marketing ploy to get you to bid a little higher than you might have done otherwise, and right now, because you think it's your last chance.

    But in practice it's often the same as regular bidding.
    The agent is still likely to ring the other bidders and ask if they want to beat the 'sealed' winning bid.
    • Surrey_EA
    • By Surrey_EA 30th Nov 17, 2:02 PM
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    Surrey_EA
    • #8
    • 30th Nov 17, 2:02 PM
    • #8
    • 30th Nov 17, 2:02 PM
    From what I've seen, it's just a dramatic term to create excitement in the sale.
    A marketing ploy to get you to bid a little higher than you might have done otherwise, and right now, because you think it's your last chance.

    But in practice it's often the same as regular bidding.
    The agent is still likely to ring the other bidders and ask if they want to beat the 'sealed' winning bid.
    Originally posted by Quizzical Squirrel
    Sometimes it's just a way of simplifying the bidding process when several buyers are interested in the same property. Rather than to'ing and fro'ing it gets everyone to put a bid in and hopefully that settles the matter.

    However, as I said in an earlier post there is absolutely nothing to stop one of the unsuccessful bidders putting forward an increased offer.

    In my experience it is unlikely whether the agent will instigate the other bidders coming back to beat the winning sealed bid.
    • eddddy
    • By eddddy 30th Nov 17, 2:07 PM
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    eddddy
    • #9
    • 30th Nov 17, 2:07 PM
    • #9
    • 30th Nov 17, 2:07 PM
    From what I've seen, it's just a dramatic term to create excitement in the sale.
    A marketing ploy to get you to bid a little higher than you might have done otherwise, and right now, because you think it's your last chance.
    Originally posted by Quizzical Squirrel
    Yep. And when I sell, that's the sort of thing I pay the EA their 1% for.

    (But obviously, when I buy, I like to think I'm not taken in by that kind of nonsense! Hmmmm...)
    • Davesnave
    • By Davesnave 30th Nov 17, 2:32 PM
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    Davesnave
    Sometimes it's just a way of simplifying the bidding process when several buyers are interested in the same property. Rather than to'ing and fro'ing it gets everyone to put a bid in and hopefully that settles the matter.
    Originally posted by Surrey_EA
    Indeed. It's how I bought my first house.

    The person benefiting from the sale was away with the fairies and her relative with POA was 82 and wanted it all done and dusted in a fortnight from first advert.

    EA obliged by listing at an attractive price and 3 of us bid above that.

    I added an extra £1 to the round figure offered.

    Who knows?
    'A society grows great when old men plant trees whose shade they'll never sit in.'
    • googler
    • By googler 30th Nov 17, 2:44 PM
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    googler
    Until contracts are exchanged you are free to make whatever offer you wish, and the offer must be put forward to the vendor, unless the vendor has informed the EA not to put forward offers below a certain level.
    Originally posted by Surrey_EA
    In E&W.

    In Scotland, if a seller has accepted an offer, then later instructs their solicitor to take a subsequent offer, the solicitor is obliged to disinstruct the seller and tell them to go find another solicitor.

    "Where a solicitor for a seller has intimated verbally or in writing to the solicitors for a prospective purchaser that their client’s offer is acceptable – whether after a closing date or otherwise – the seller’s solicitor should not accept subsequent instructions from the seller to accept an offer from another party unless and until negotiations with the original offeror have fallen through for bona fide reasons unconnected with the possible offer from another party. The solicitor should advise the seller to instruct another solicitor if he wishes to accept the later offer. ..."
    • Surrey_EA
    • By Surrey_EA 30th Nov 17, 3:17 PM
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    Surrey_EA
    In E&W.

    [/I]
    Originally posted by googler
    Sorry, should have clarified that!
    • comeandgo
    • By comeandgo 30th Nov 17, 3:42 PM
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    comeandgo
    Sealed bids work really well in Scotland, but then our house buying system is better regulated.
    • Surrey_EA
    • By Surrey_EA 30th Nov 17, 3:44 PM
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    Surrey_EA
    Sealed bids work really well in Scotland, but then our house buying system is better regulated.
    Originally posted by comeandgo
    There's no great shortage of regulation in E & W, it's the ineffectual enforcement that's the problem!
    • googler
    • By googler 30th Nov 17, 4:14 PM
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    googler
    There's no great shortage of regulation in E & W, it's the ineffectual enforcement that's the problem!
    Originally posted by Surrey_EA
    ... but don't you think the basics are lacking, or at the very least, implemented at the wrong time?

    You agree an offer price, but the buyer has nothing to guarantee the entry date, the inclusions and exclusions from the sale, and no agreement on the contract which will apply.

    Typically, these come weeks or months later. How can you agree the price for the property without agreeing what will be included in, or excluded from, the sale?

    Wouldn't buyers and sellers be better served by agreement on these things at the time of acceptance of offer?
    • Surrey_EA
    • By Surrey_EA 30th Nov 17, 4:28 PM
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    Surrey_EA
    There are pros and cons to each system.

    When a vendor accepts an offer on the sale of their property they do not necessarily know where they will be moving to, and therefore they may not be in a position to confirm what precisely is included.

    If the place I'm moving to doesn't have an oven I may want to take mine with me, if there is an oven in the place I'm going to I'm probably happy to leave my current one.

    I would always recommend to a buyer that they itemise what they are expecting their offer to include. This limits the potential for confusion later on.

    There are many things I think should happen that would make the process less stressful, but it's unlikely to change anytime soon.
    • cjdavies
    • By cjdavies 30th Nov 17, 5:13 PM
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    cjdavies
    I think if I was seller and did the sealed bid thing, I would be !!!!ed off with the unsuccessful buyer offering more "why didn't offer more at the time?!".
    Last edited by cjdavies; 02-12-2017 at 1:14 AM.
    • pepper77
    • By pepper77 1st Dec 17, 10:37 AM
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    pepper77
    Thanks all.
    He (we) have decided his offer is the asking price.
    • googler
    • By googler 1st Dec 17, 1:14 PM
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    googler
    When a vendor accepts an offer on the sale of their property they do not necessarily know where they will be moving to, and therefore they may not be in a position to confirm what precisely is included.

    If the place I'm moving to doesn't have an oven I may want to take mine with me, if there is an oven in the place I'm going to I'm probably happy to leave my current one.
    Originally posted by Surrey_EA
    See, that's where I think it's wrong. The seller shouldn't be stringing the buyer out due to their indecision. They should be decisive about what they're selling at the outset. "This is the house, and this is included in the sale, that is excluded from the sale."

    They also shouldn't be stringing the buyer along with a lack of promise of a definite entry date. If you're going to sell me a house, then you should agree price, inclusions/exclusions, and commit to a date of entry.

    I would always recommend to a buyer that they itemise what they are expecting their offer to include. This limits the potential for confusion later on.
    Originally posted by Surrey_EA
    It shouldn't just be a recommendation, it should be standard. It is in Scotland

    There are many things I think should happen that would make the process less stressful
    Originally posted by Surrey_EA
    Coming from someone within the industry, I'd ask why you aren't pressing for such change through trade associations etc?
    • Surrey_EA
    • By Surrey_EA 1st Dec 17, 2:57 PM
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    Surrey_EA
    See, that's where I think it's wrong. The seller shouldn't be stringing the buyer out due to their indecision. They should be decisive about what they're selling at the outset. "This is the house, and this is included in the sale, that is excluded from the sale."

    They also shouldn't be stringing the buyer along with a lack of promise of a definite entry date. If you're going to sell me a house, then you should agree price, inclusions/exclusions, and commit to a date of entry.
    Originally posted by googler
    This is partly why I say each system has its pros and cons. What you describe clearly benefits a buyer, but does not necessarily benefit a seller. By committing to a fixed date of entry a seller must have some sort of alternative accommodation lined up, which could be at significant expense.




    Coming from someone within the industry, I'd ask why you aren't pressing for such change through trade associations etc?
    Originally posted by googler
    Because I have a business to run, which takes up enough time already, and the National Association of Estate Agents (NAEA) are terribly ineffectual, disappointingly.

    Furthermore, it's easier to come on here and whinge than to organise myself properly and do something more constructive!
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