What to offer in sealed bid?

jjlandlord

Sealed bids auction are good at extracting each bidder's best offer. Indeed, considering the scenario there are not many possible strategies but to offer the max. you're willing to pay.

The only thing that could potentially help is to know the number of bidders and their positions, but of course an agent won't be talkative on the subject.

pyueck

Thrugelmir wrote: »

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.

I think you are thinking is what I am saying is that properties can't sell for over asking price via sealed bids. I am not. I am saying that the process is a gimmick to make buyers feel under pressure to bid quickly and be in fear that if they don't bid high they will miss out. Reality is that you can bid after the 'deadline' as previously said some sellers may ignore you but most won't. The message is don't be panicked into overbidding.

Davesnave

pyueck wrote: »

Reality is that you can bid after the 'deadline' as previously said some sellers may ignore you but most won't. The message is don't be panicked into overbidding.

That's not terribly reassuring.

'Overbidding' is something difficult to measure. It's possible to work out the approximate general worth of most properties, but what a particular house is worth to an individual can only be decided by that person, especially if they've been looking fruitlessly for some time.

There's no need to panic, because one usually has a gut feeling about the amount that seems right.

With my first house, I stretched myself, because I felt the advertised price was too low. I knew how long I might wait to find similar, or better, so it wasn't a difficult decision.

Five years ago, I refused to bid higher for the house I'm in now. The property was very individual, but I felt it was already at a fair price, so I wouldn't compete for it.

That's why I'm saying to the OP to bid what he/she feels the property is worth, provided that's affordable.

Annie1960

Davesnave wrote: »

I

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.

I agree with this.

Also, if you don't get this house, are there others in your price range in the location you want that you could offer on?

rosie383

I agree with some of the other posters. If this is the only house on the market for a while that is perfect for you, and you know that it is unlikely that you will be able to get something else within budget and time frame, then bid the maximum that you would be willing to pay without bidding so much that you regret it.
The 'perfect' house for us came on the market a couple of months ago and we entered a sealed bids thing for it as there were three other offers that day. We didn't get it as someone outbid us, but we were told that because we were proceedable, our bid was seriously considered even though it was lower than another.
Do we wish we had got that house? Definitely. Do we have any regrets? Absolutely not as we bid the maximum that we could afford and that the house was definitely worth.
We would not go to the same lengths for a house which was not perfect for us, well, if there were other possibles on the market that is. If you have been waiting for a house in a particular area for a long time and you are in danger of being left behind in a fast-moving market, it is a very different scenario to having choice and feeling no urgent pressure to buy.

kiden

I am under some self-imposed pressure to move (I split from my long-term partner last November - it's all amicable, but awkward living in the same house, and I want my privacy and a place to make my own ).

I considered renting, but am just not the renting type (and have a cat, which restricts what's on offer). Having said that, if I don't find somewhere soon, I'll reconsider renting.

I've been looking since the split, but because of Christmas, only started looking seriously since beginning of Jan. Round here, nice houses have been going for asking price or above within a few days of viewings opening.

('Nice' to me that means character, decent size garden, rural, non-development, non-standard, as few houses in sight outside my house as possible, not on a main road.)

This bungalow is on the outskirts of a village - first time it's come to market, and the surrounding properties are all different (e.g. there's a big oldy-worldy thatch + paddock next door going for 750k), but otherwise very few recent sales, so very little to compare with.

Bungalows round the wider neighbourhood (5 mile radius) seem to be in the 375-389 price bracket, with the occasional one on for offer over 400, but none of them quite as rural or large-gardened as this one.

So anyway, I chanced it a bit and put in my offer with a 'ring me to discuss if needed/possible', and emphasised that I'm proceed-able etc.

Now I wait...

rosie383

I really hope you get it Kiden. It does sound like this is your ideal property.

Hoploz

Good luck I hope you get it

Davesnave

I hope you get it too, but if you don't, I found that a 6 month rent payment up-front secured a rental property for us, our two cats + a couple of ferrets....and in a posh neighbourhood!

kiden

Argh - they asked if I'd go another 1,500 and they'd take it off the market this afternoon. I declined, saying I might need that for a new boiler (they know it's old, and oil ones are more expensive...), and that's made them think about it overnight. They want to know, if they take my offer, that I'll only try reducing it if the survey says there's something major/structural, and not if I need a new boiler, carpets, etc (which I wouldn't, to be fair, as I've already budgeted for those separately).

I've said though that if it's a deal breaker, I'll go the extra 1,500 - would feel silly to lose it now - and thinking I should have just said yes (wondering if I've made them not want to sell to me because I didn't budge). EA says he'll see what he can do (he's the one who said that I shouldn't panic into immediately accepting their counter offer). Ah well - should know by tomorrow morning...

Worse case is he's played me and will tell me it's gone to another person to see if he can push me higher... I guess that's when I need to stick to my max. I'd like to think that's not the case as he's appeared to be very kind through all this - he gave me enough info to reduce my initial offer quite a bit.

I'll update once I know, and just want to say thanks again for all the support and opinions while I go through this!