First time buyer - found dream home but it's sealed bids!

Mrcawdell_2

Good evening

Thanks first off for reading the post

Me and the partner are first time buyers and have got a mortgage in principle with a deposit on hand to purchase our dream home.

Weve been looking for months and one popped up last week with an open house viewing yesterday. We attended the property and it was absolutely perfect.

The property is up for 'offers over 220k' and we have a maximum budget of 227k.

The property is 3 years old, the seller paid around 180 for it but it is in an amazing area and there seems to be a lot of interest.

The EA said there were 8 people viewing. They wouldnt be holding another open day as they were confident it would sell itself and its apparently had a bid on the day we were there. The EA was very ropey, me being a salesman i've been in enough situations to tell when someone is stumbling so I have no doubt nothiing had been made yet, but j also have no doubt that the propert WILL sell.

All bids are invited by tomorrow at 12pm.

My question is, are these houses put in that kind of sale to achieve the 220 they have asked for or to drive peoples interest by starting low and selling for a lot more?

I want it. We want it. But i'm unsure on how to go about it

Can anyone offer advice or tips for winning a sealed bid auction?

SmlSave

You can only offer as much as you can afford

jimbog

I would offer 225K and outline on your offer the strengths that you mentioned. The 2K difference could be your 'wiggle room'

Hoploz

I've done sealed bids 3 times. In 2007 one I offered below asking price and it went for 30k over it, one I offered 10k over asking price and it went for 50k over, these were in region of 400k. Third time was 2014 and I got it. 15k over asking price (over £1m so much smaller % this time)

If you are FTB you're prob stretching yourself already so offer what you can afford and cross your fingers. If you go too crazy then the valuation could come in lower which could give room for renegotiation if the seller will agree. Or could mean you lose it at that stage anyway.

Is it a particularly busy market, or is it a very special house?

Consider what else is on the market and whether this one is worth a premium to you for any reason.

If there's plenty of supply then another one could well be along soon for the same or lower price. If you've been looking for ages and you aren't likely to find anything else for another year by which time prices may well have increased then its worth stretching a bit for this one, otherwise you end up looking at worse houses for the same or even more money this time next year!

marksoton

Mrcawdell wrote: »

I want it. We want it. But i'm unsure on how to go about it

In this scenario , offer your max. If you're sure....

Clarabella123

We just had a very similar situation. 2 bed in the SE of England on at £275k, went to sealed bids, we went in at £285k which was the most we could afford. There were two bids at this price and we got it due to the fact we were FTBs with a 75% LTV. The other couple who had the same offer were in a chain so they picked us.

Stress to the estate agents the benefits of your bid, no chain, big deposit etc whatever your positives may be.

We were worried going over asking price would mean the mortgage lenders valuation would under value but ours was fine thankfully.

A house is only worth what people are willing to pay I guess.

How would you feel if you lost out over say £2k... Likewise, don't push yourself for something you can't afford.

It's a tough process but it's a real sellers market at the moment (in our area anyway).

Good luck, keep us posted! X

ognum

Mrcawdell wrote: »

Good evening

Thanks first off for reading the post

Me and the partner are first time buyers and have got a mortgage in principle with a deposit on hand to purchase our dream home.

Weve been looking for months and one popped up last week with an open house viewing yesterday. We attended the property and it was absolutely perfect.

The property is up for 'offers over 220k' and we have a maximum budget of 227k.

The property is 3 years old, the seller paid around 180 for it but it is in an amazing area and there seems to be a lot of interest.

The EA said there were 8 people viewing. They wouldnt be holding another open day as they were confident it would sell itself and its apparently had a bid on the day we were there. The EA was very ropey, me being a salesman i've been in enough situations to tell when someone is stumbling so I have no doubt nothiing had been made yet, but j also have no doubt that the propert WILL sell.

All bids are invited by tomorrow at 12pm.

My question is, are these houses put in that kind of sale to achieve the 220 they have asked for or to drive peoples interest by starting low and selling for a lot more?

I want it. We want it. But i'm unsure on how to go about it

Can anyone offer advice or tips for winning a sealed bid auction?

No one can tell you the answers!

You know if the market is busy, if it's a seller or buyers market where you are.

If you want the house then don't miss it for a couple of grand.

Look at what other house in the area are selling for, think of any work that might need doing, decide on a figure you will be content with if you don't get the house. Don't wish you had spent £1000 more or regret that you may have paid too much.

Next, state your offer and then state your position.

Things like

Mortgage agreed in principle
Large deposit
Will live in the house your self not a BTL purchase
Name your solicitor if you have one
Describe how quickly/slowely you can move or at the vendors pace

Describe anything that makes you the perfect buyer then cross your finger and hope!

blackshirtuk

You could offer a million for it but your mortgage company will only offer you a mortgage on what it considers the value to be

If you offer your max £227K and the mortgage company values it at say £210k then you would either have to re-negotiate or come up with £17k extra.

Mrcawdell_2

blackshirtuk wrote: »

You could offer a million for it but your mortgage company will only offer you a mortgage on what it considers the value to be

If you offer your max £227K and the mortgage company values it at say £210k then you would either have to re-negotiate or come up with £17k extra.

I appreciate that completely but surely it would be really unprofessionable for an estate agent to put a house up for offers over 220 if its valued at 210?

Mrcawdell_2

Thank you everyone for your replies.

The house is exactly what we've been looking for and it is the first we've seen in around 3 months.

I didnt know if there were any tactics to help convince them we're the best party such as try to meet the vendors, get pally with the agent etc?

Thanks for all the replies! I've got 12 hours to go!

marliepanda

With 3/4 hours of business time you've no time to 'get pally' plus the agent works for the sellers, and they want commission, not to sell to 'pals'

Unless you are remarkably proceedable compared to other bidders it'll be whoever bids the most. A couple grand here or there might sway them if they like you (though again, you've got three/four hours...) but much more than that they're gonna want the cash.