Sealed bids

Ladybird20

Why do people decide to sell their houses using sealed bids rather than the normal "offers " type way???? Its just that i know some people who have bought this way and i wandered why this is...i look forward to reading your replies!!

Doozergirl

It would be sealed bids if the house was particularly popular with potential buyers, in which case it might start off with a regular asking price but end up at sealed bids.

Or circumstances of the sale being for reasons of probate, or a quick sale or similar,and perhaps the property being a little hard to put a price on because it's run down or has more potential.

Ladybird20

hmmmm thats interesting..yes one of my freinds bought a house through this , i believe an old lady lived there who had passed away so maybe its the probate thing........so can you do sealed bids then if they believed in there property????obviously not now as you are lucky for people to look at "for sale" boards these days

Doozergirl

It's definately something that will occur more or less depending on what the market is doing. If the market is frenzied then you'll find many, many going to sealed bids as it's easier than an almost auction situation where people keep bidding up from other's offers.

If no-one is buying then it's going to be hard to get two people to bid against each other!

Davesnave

I bought my last house by sealed bid. The owner, who'd inherited, was aged and mentally incapable, so her younger sister (82!) put it on the market at a low price and, within 48 hours, three of us wanted it. The younger sister just wished to be rid of the place quickly, because she was not going to receive a penny.

Anyway, I bid the most, but it was 'very close,' perhaps because I added one extra pound to the round figure I intended offering!

hethmar

Ive been in two sealed bids situations. One is the house I am still living in - it was a property left to a number of the deceaseds children. The Estate Agents had priced it low to get interest and my goodness there was interest, we were shown around with a group of 8 other couples - and they had several more of these tours for the whole weekend. We offered the asking price and were told that another 6 asking price offers had been received and they wanted our best sealed bid by a few days later.

We sat outside the EA changing our letter of offer at midnight the day before the closing date and we had the phone call at lunch time the next day saying we had got the house. In the letter we had to give details of our finances, deposit, our solicitor and bank details and confirm our ability to proceed immediately. (We understood from one of the girls at the agent that 2 others bidders had rung and tried to up their offers after we got the property but they were told it wasnt on to take more offers).

The other situation was again a house where the owner was living in South America so absent. There was a tenant but he was already on notice to leave. Again, same situation, dozens of people milling around. We offered asking price, 4 others did same but this time we didnt up ours as there were an awful lot of unknowns with the property which was listed.

Sammy_Girl

My Nan's house was sold by sealed bids after she passed away. She lived in an old fisherman's cottage in Devon in a popular village. The EA advised on sealed bids as interest in the property was so high. It was literally a stone's throw from the beach and had uninterrupted views of the sea. It was a 2 up 2 down and no garden - not huge at all. We couldn't believe how much it sold for. Shame it was for a second home buyer really and not a local - they had all been priced out of the market.

Airwolf1

Father in law ends up selling a lot of land in this manner.

Mr_Matey

I find the concept of sealed bids awful. It's a way to get the highest amount someone is willing to pay regardless of the market and really preys on the emotional aspect of buying a house.

If I was interested in a property and the vendor said it was going to sealed bids I would walk away. Or if I really wanted the property maybe I'd offer more then gazunder to a fairer price.

Normal auctions are much fairer. Sealed bids are for suckers!

Darth_Marty

Mr_Matey wrote: »

I find the concept of sealed bids awful. It's a way to get the highest amount someone is willing to pay regardless of the market and really preys on the emotional aspect of buying a house.

If I was interested in a property and the vendor said it was going to sealed bids I would walk away. Or if I really wanted the property maybe I'd offer more then gazunder to a fairer price.

Normal auctions are much fairer. Sealed bids are for suckers!

People criticize all professionals in the housing market yet here you are saying you would actively look to gazunder and your happy to do so.

What an imbecile you must be.

Sealed bids is actually a fair way to do business, you know your highest offer so if you want the place you offer it, if you win its a done deal and low risk of the sale falling through.

Unless of course the vendor is unfortunate enough to be stuck with a cretin like you.

IveSeenTheLight

Its a sealed bid system in Scotland wherever there are more than one sale generally.
Got to say I prefer it that way.
If you do your market research, you will be in the right ball park and if you win, you cannot be gazzumped.