What to offer in sealed bid?

hcb42

He doesnt hate doing sealed bids. He loves them. They make more commission!


Oh cant you put a link, I am curious now!

pyueck

kiden wrote: »

Thanks so much for your answers - it's really helping bring me down from the panic I was getting into (there's just me making this decision ).

It turns out I probably would have overbid: I've just spoken to the agent and he's now saying that there's probably only two of us in it (maybe three), and although he really doesn't know what will come in tomorrow, if he had to guess he'd say 360-365. That already feels much better to me

He also said that if the offers were close, he'd probably come back to me anyway, as he's a simple man and would try and convince the sellers of the benefit of going with someone as proceedable as me over a higher offer (which implies maybe the others aren't as proceedable after all...).

He's also said he hates doing sealed bids, and that if I want to call him again tomorrow morning, that I should go ahead - call him as many times as I need to.

Forget the sealed bids thing...take your time. Sounds to me like your the only serious bidder, don't overpay!

Hoploz

pyueck wrote: »

Great thanks for clarifying. My issue was when you say 'next years prices' this implies an inevitability to the prices rising. This can create a dangerous position where a bidder pays more than market value, prices actually fall and the OP risks being in serious negative equity.

In any case if you overbid you likely will get your mortgage application rejected.

I wonder whether you actually even read my last paragraph.

Davesnave

pyueck wrote: »

Forget the sealed bids thing...take your time. Sounds to me like your the only serious bidder, don't overpay!

If it is a genuine sealed bid process, one cannot ignore the deadline as that's when the envelopes are opened. People expect (or used to expect) a result within minutes.

However, the way the agent's speaking now suggests this is not a straight sealed bid process like the one I went through years ago. He's implying that he can still 'bend' the result.

OP, you've met the agent and we haven't, but the only things that matter are what that house is worth to you, and whether you can afford it.

Jhoney_2

kiden wrote: »

Thanks so much for your answers - it's really helping bring me down from the panic I was getting into (there's just me making this decision ).

It turns out I probably would have overbid: I've just spoken to the agent and he's now saying that there's probably only two of us in it (maybe three), and although he really doesn't know what will come in tomorrow, if he had to guess he'd say 360-365. That already feels much better to me

He also said that if the offers were close, he'd probably come back to me anyway, as he's a simple man and would try and convince the sellers of the benefit of going with someone as proceedable as me over a higher offer (which implies maybe the others aren't as proceedable after all...).

He's also said he hates doing sealed bids, and that if I want to call him again tomorrow morning, that I should go ahead - call him as many times as I need to.

Indeed, there's you, the EA and the Vendor - bid the highest you are comfortable with, then there are no regrets.

pyueck

Davesnave wrote: »

If it is a genuine sealed bid process, one cannot ignore the deadline as that's when the envelopes are opened. People expect (or used to expect) a result within minutes.

However, the way the agent's speaking now suggests this is not a straight sealed bid process like the one I went through years ago. He's implying that he can still 'bend' the result.

OP, you've met the agent and we haven't, but the only things that matter are what that house is worth to you, and whether you can afford it.

And if somebody comes in and bids more the next day or if the highest bidder pulls out it all means nothing. Sealed bids process has no legal meaning it's just a way of extracting higher prices especially by making people bid against nobody.

Jhoney_2

pyueck wrote: »

And if somebody comes in and bids more the next day or if the highest bidder pulls out it all means nothing. Sealed bids process has no legal meaning it's just a way of extracting higher prices especially by making people bid against nobody.

...In England and Wales.

For the benefit of other viewers not familiar with the Scottish process.

bris

It all depends on the popularity of the property and whether another like it will come along any time soon. There are still properties that command a premium via O/O or sealed bids so because we don't know the area or the market in that area it's impossible for any one her to say ignore the sealed bids process.


Bottom line is offer what you are willing to pay, then if you win leave a bit wiggle room when the survey comes in. This will tell whether or not the sealed bids were real or not and you can take it from there.

pyueck

bris wrote: »

It all depends on the popularity of the property and whether another like it will come along any time soon. There are still properties that command a premium via O/O or sealed bids so because we don't know the area or the market in that area it's impossible for any one her to say ignore the sealed bids process.


Bottom line is offer what you are willing to pay, then if you win leave a bit wiggle room when the survey comes in. This will tell whether or not the sealed bids were real or not and you can take it from there.

Disagree, no matter the interest in a property the sealed bids process just gets bids in. It does not compel either the buyer or seller to complete on those prices. Of course you may get a seller who says ignore that big bid a day after our sealed bid process, but most of the time they will go for the new bid.

Thrugelmir

pyueck wrote: »

And if somebody comes in and bids more the next day or if the highest bidder pulls out it all means nothing. Sealed bids process has no legal meaning it's just a way of extracting higher prices especially by making people bid against nobody.

I remember the property near Marlborough that was on the market for £2.25m. Went to sealed bids as 63 people expressed an interest. 38 people bid. Property sold for £3.75m.

People will pay what a property is worth to them.