Why would someone sell their house by 'formal tender'?

miffyhugmuffin

Hi,

I've seen a house that I like but it is for sale by formal tender. I know this means I have to submit a written bid for the place but could I get a mortgage on it or is it only available to cash buyers? Why would someone sell their house in this way? The 'guide price' seems quite low. There are only photos of the exterior on the estate agent's website so it might be the inside needs some work - I would have to check this out at the viewing. I have never seen this type of sale before, anyone got any advice for me?

Thanks

Debt_Free_Chick

When for sale by formal tender there is usually some "complication" of some description.

With no interior photos, my guess is that this is a probate sale i.e. the owner has recently died and the executor(s) is selling the property.

Formal tender is a little like an auction - except you don't what others are bidding. But you have to be ready to complete on the sale soon, if your bid is accepted. Like an auction, the agent often has a legal pack for interested bidders, so you could ask for that.

miffyhugmuffin

Thanks, that makes sense. Does anyone have a feel for how much these properties go for? Is it usually close to the guide price or way more?