Help please - FTB and Sealed Bids!!

Little_Miss_Penny_Less

Hi everyone,

Wonder if anyone can provide some advice on buying with Sealed Bids??

We have seen a house that we really like (both of us which makes a refreshing change!) and has a lot of potential, but needs a lot of work doing to it - new kitchen bathroom, carpets throughout to start with... double glazing, replace econ7 with GCH in future... We would be able to do the work bit by bit, and would be prepared to live in the chaos etc... worked out our figures and we could afford it at the asking price, but it goes without saying that with the work that needs doing we'd like to get it as cheap as possible.

So... I call up the EA to ask about the situation with offering, and the estate, probate etc... as I know that the old guy who lived there has passed away and was pretty certain there was no family (bit of local knowledge and a very gossipy mum! - turns out this is correct!), and the EA decided to mention now, after two veiwings, three phone calls and two visits to the office that the property will be marketed for a further 3 weeks (been on one already), and then it will go to sealed bid, so would we like to submit our best offer, they already have two on the table, which he tells me are not a million miles away from the guide price...

Another problem is that builders and developers are interested as planning permission for a small extension wouldn't be hard to get and a reasonable profit wouldn't be impossible...

So, what do I do now? All advice VERY gratefully received...

silvercar

they already have two on the table, which he tells me are not a million miles away from the guide price...

Ignore this, its EA talk.

So, what do I do now? All advice VERY gratefully received...

Carry on looking at other property. In 2 weeks time, on the very last day (very last hour if you can manage it) put your offer in. You will be able to judge how desparate the EA is by the number of phone calls you get between now and then. Try and visit the property with a builder if you can. Offer what your prepared to pay and walk away.

rchddap1

Don't believe everything the EA tells you. Besides...if they're 'sealed bids' that should mean that no-one knows what they are until a certain date and time is reached. This rule should include the EA as well. No point in doing it 'sealed' otherwise.

Take a look at the house, work out how much you'd need to spend to get it up to a decent standard, then look at the price of similar 'decent' properties and that should give you an abolute maximum price for the property. Then sit down and work out how much you're prepared to pay and of course if you're interested in the house in the first place.

However, as said above....the key rule of only offer what you think its worth and then walk away if it isn't enough should always be remembered.

Little_Miss_Penny_Less

Thank you for your replies, I did have a feeling the EA might have been having me on a bit - I guess it's always 'buyer beware' eh!?

I will try to get back there with a builder - now that they have handed me time on a plate it does seem a very sensible idea!

I guess all we can do at the end of the day is put in our personal bid and hope! :rolleyes:

Thanks again

vithya

I did make a offer for a sealed-bid property last week and waiting for them to reply. :rolleyes:

Little_Miss_Penny_Less

Oh no Vithya! So even after the wait to bid there is an even longer wait to hear if you got it?!

I tell you what, I think house-buying could end up making me ill! I'm quite an impatient person by nature and I reckon all the waiting around and uncertainty could just finish me off!

Good luck with yours Vithya! I'll be thinking of you!

terrierlady

make sure you use your ebay bidding experiance, include an odd amount say £150,025.

shockingmoment

Its easy to spot when an EA is telling fibs... their lips move. Treat them with suspicion and verify what they say.

We submitted sealed bid for a house, only to discover that the EA opened them all before sending to solicitor!!! Needless to say, a local builder got the house, for 8500 less than we'd offered (nethouseprice)!

Not even sure our bid got as far as the solicitor. EA wouldn't tell us who the solictor was.... Why ask for sealed bids by midday?

Bids should have been posted unopened to the solicitor. Who's to say that the EAs best buddy builder wasn't in the shop at 12.00, with a letter with just the amount needing to be filled in?

Just suppose your bid does get to the Solicitor (assuming probate). The solicitor will want a quick, clean sale. Preferably no mortgage / subject to survey etc. You could state in your bid letter its a cash purchase. Delay tactics whilst you sort the mortgage / survey etc. Then say you've changed your minds. Too late to go back then.

Our opinion now is that EAs are bent.
Good luck,

Doozergirl

To the OP, you must make your bid as comprehensive as possible. If you have done your homework, you might be able to swing it your way.

Rather than a piece of paper with an amount, type a letter with your bid, your solicitor's details, your bank manager's number to verify deposit money, agreement in principal with lender/mortgage brokers number. If you know what is wrong with the house then state everything that you can so they can see that you're not going in thinking less needs to be done than actually does. You need to prove as well as you can that you're not going to be pulling out.

shockingmoment wrote:

You could state in your bid letter its a cash purchase. Delay tactics whilst you sort the mortgage / survey etc. Then say you've changed your minds. Too late to go back then.

:eek: Not all EAs are liars and I wouldn't advise anyone to lie to try to get ahead, especially not a FTB.

I'm sure that the EA/vendor would be looking to clarify a cash position before running with the offer anyway. They'll come unstuck at the first hurdle.

scheming_gypsy

when you put your bid in make sure you also add that you're an FTB so don't have a property you're waiting to sell.. Also be cheeky on the price.
The sellers want rid cos their old dear has moved on and they've got a house hanging around their neck and they want the cash..

They can either take a better offer and possibly have to wait or take your offer and get the cash in their pocket a lot sooner.

david29dpo

bear in mind there may well be developers who pass brown envelopes under tables to the nice EA. this happened to me. took a while to find out. had'nt a hope in hell in getting the house!