What is sale by tender?

asu5z

Dear All

I am planning to buy a house for myself. And I have recently noticed that for some reason lots of house in my local area are going by sale by tender recently....

Anyway, my questions from respectable forum members are:

1. What is a sale by tender?
2. What precautions to take when buying sale by tender?
3. How to check if the advertised property is mortgage able?
4. By putting up sale by tender offer, are we bound to buy the property i.e no option of pulling out after offer accepted.
5. Should we must have mortgage ready when putting up offer?
6. Does sale by tender mean that property has some flaws in it? or Sale by tender is just to pay less commisssion to estate agents as I just notice that douglas allen and haart are offering sale by tender commission for only 150 plus VAT.

I wait for your expert opinion.

Regards

hazyjo

Have noticed the same thing near me. Weird. Never really seen it other than for auctions but it's creeping in everywhere. The ones near me seem to have an open day, then invite bids. I think that's pretty much it, but assume someone will be along to confirm! Probably as a result of prices rising so quick and the EAs are reluctant to stick one price on it cos then people would refer to it as a bidding war and be reluctant to join in, or feel they've overpaid.

Maybe low commission is an incentive to sign up so that they can make 'by tender' the norm.

Interesting to hear what others have to say on it... wanted to ask the question myself too.

Jx

hazyjo

PS Would be surprised if it has the same limitations as auction (as you mentioned). Again, interested to hear...

asu5z

Yes, I am also experiencing the same... Open day followed by tender closing date and the bids of course. Yes, anxiously waiting for feedback from other experienced members..

Property market going up is a crazy crazy thing to experience, both for property owners and for new buyers for different reasons. I wish If I would had bought a house at least 6-9 months back when it was calm and peace in the market.

hazyjo

London? I'm in Chingford and bought 9 months ago. Market has gone mental ever since! No way would I be able to have afforded my house today.

I wish you luck - nightmare in some areas.

Jx

Ether_4

asu5z wrote: »

Dear All

I am planning to buy a house for myself. And I have recently noticed that for some reason lots of house in my local area are going by sale by tender recently....

Anyway, my questions from respectable forum members are:

1. What is a sale by tender? Sale by tender is normally a sealed bid where you put your bid in in a sealed envolopes along with your sales status (ie are you in a chain or not). DA and Haarts charge around the 3% mark on top the sale price for their fees (the buyer is liable for the EA Fees)
2. What precautions to take when buying sale by tender? make sure you take into account EA fees
3. How to check if the advertised property is mortgage able? same as other properties ( others may be able to give a more clear answer)
4. By putting up sale by tender offer, are we bound to buy the property i.e no option of pulling out after offer accepted. (I have found generally that you can pull out by failing the mortgage part)
5. Should we must have mortgage ready when putting up offer? It will help your alround bid if you did have OIP
6. Does sale by tender mean that property has some flaws in it? or Sale by tender is just to pay less commisssion to estate agents as I just notice that douglas allen and haart are offering sale by tender commission for only 150 plus VAT. Its the latter as you will be paying the fees

I wait for your expert opinion.

Regards

Please see my answers in red

asu5z

Ether, Thanks a lot. That was really helpful. I am very clear now.