Sealed house & sealed bid.

vithya

I have found a house the house itself have been sealed by court until last
month. Now the estate agent starting with viewing this week and I’m going
to see it end of this week. And when I spoke with the estate agent she told
over the phone that it’s a sealed-bid.

What does
“Offers are invited on a sealed bid and subject to contract basis” means?

What I got from the phone call she told that I have to give a offer then end
of this month will be submitted and will be sold to the highest bidder.
She also told they are guided by court to not give any advice regarding
prices to interested buyers.

If now I have to offer then how do I do that? Do I just type my bid
and give it to them Or how? Need to do by a solicitor? Bank?


My next worry is how much should I offer?
The house is on a road which has average price around £340k – £375k
but all these houses are top modern double-garage 4-5 bedrooms (rebuild).
But this house 1930 build, smallest on the road 3 bed rooms..
And the house need of total modernization looks like no one have lived
there for a while. Is 250k (stam duty concern) is good offer?

The reason i want to buy it is my father is a builder so free labour.
And i like the place and has potential for extension.

Dora_the_Explorer_5

If now I have to offer then how do I do that? Do I just type my bid
and give it to them.

Yes, that's how it works. Perhaps all you can do is bid what you think the house is worth, which is what every other bidder will be doing.

Lorian

Do look at the inside before you bid, take your father.

Sealed bid means exactly that. Your bid shoulds be in a sealed envelope so that no one can view the amount you have bid until after the closing date.

Try chatting to a friendly estate agent to get a view on value. If you have a property to sell then get a valuation on yours and ask about this one when they come around. Ask them what it would be worth in A1 condition. Ask dad how much it'll cost to renovate to A1 condition. Then you have a good idea what to bid.

A1 condition price - (bid price + refurbishment cost + expenses) = profit

The higher your profit the more chance someone will outbid you.

vithya

Thanks "Dora & Lorian" for the quick replies... :j

I dont have any to house to sell I'm first-time-buyer.
I dont want any profit on the house not going to sell it...
just want a nice place to live. :rotfl:

Im not rich to buy any house so trying my luck with this house..
I have some saving to desposit saved.

I actually think maybe someone else will bid 250k too because
of stamp-duty concern. :undecided

Jorgan_2

The court will be looking for the highest offer from the best buyer, so state within the bid that you are a FTB, who your solicitor is & which lender you are getting the mortgage with, (copy of letter or mortgage certificate). The more info the EA & his client have to go on, the easier the decision will be to make. Never go in with a round figure such as £245,000, somebody else may think this but offer £245,500 to try & secure it, try offering an odd figure such as £245,568. Stamp Duty may make this difficult.

Doozergirl

Most of the people looking at the property will be property developers and they will be offering less than you because they need profit (as alreadypointed out). This means that you are already very likely to get the property. The stamp duty threshold is a massive issue and I'd say that most people don't realise that 3% kicks in at £250,001 so they offer £249,999 or less. A bid at £250,000 may just pip another person looking at the house for their home. The previous point about making an odd numbered offer is generally a good one, but offering an odd number above £250k is going to cost you an extra £5k!

Do all your homework and get your finances ready before putting in the bid. When you put in your bid, write a letter pointing out strengths; the fact that you are a FTB, mortgage offer in principal (enclose a copy), good deposit (give contact details for your bank), solicitor ready and waiting (give their name and details) and give a proposed date for exchange and completion. It shows you've done your homework, that your bid is serious and in the case of your bid being matched, it could just swing things your way.

Good Luck!

vithya

Doozergirl wrote:

3% kicks in at £250,001 so they offer £249,999 or less

Good point! and thanks for your advice im doing my homework!

Lorian

I am not a legal expert but guess you could word your offer as £250K for the house and fifty quid for fixtures and fittings (if there are any) I recall reading somewhere (here?) that this might be possible. You'd need this confirmed.

securityman

If the house is worth it, i would go over the £250.000 mark.
Most will be under, but i bet a couple will be over with bids.
People can over look 5 or 10 grand when spending that sort of money.

Sounds like it,s ripe for the picking

Sm

Romanstan

You could always try:

https://www.houseprices.co.uk

This will give you an idea as to how the prices have been doing for the road over the last 5 years and also the last price paid for the property if it has been sold during that period.

Best of luck

vithya

hi ppl...

check this url http://www.1st-pc-fix.co.uk/House-82/
and let me know how much it will be needed to fix all this mess....
no centralheating...needs new pipelines..and wires.. yes everything...

also needs double glassing or maybe i can do that later..

its a 3 room house...