Sealed bidder rights

xpi

Hi

We are in the process of buying the property. We liked a house. The estate agent told us that he accept offers as sealed bids. We made a conservative offer that was relatively low. He called us and said that it is unlikely to be accepted because there are 2 other offers and he doesn't know them, but it should be around X. We increased the offer for 10% (slightly higher than X) and won the bidding.

I have some suspect that we could be the only bidder . Do I have any legal right to request a proof of other buyers bids? We didn't see anything. Everything we have - just agent words. I want to proceed with buying, but I want to know that we not a subject of cheating (one bidder) - in this case I'd propose X + 5% probably.

My impression from what I found is that as sealed bids are not regulated - we don't have any chance to legally get any proof.

Thank you!

maninthestreet

If the EA knew what your bid was, why didn't they know what the other two bids were?

G_M

If your bid was sealed, how does the EA know what it is?

He has not opened 'the other two' bids - why did he open yours?

You're right - no regulation and nothing you can do.

Offer what you are prepared to pay and see what happens.

Of course, if you are told your offer did not win, there's nothing to stop you putting in a new, higher, offer. As said above, no regulation of the sealed bid process, so the seller can always switch to a new, better offer.......

eddddy

So you've had your offer accepted... If you reduce your offer now, I suspect the seller will just assume you're a flaky buyer, who's likely to mess them about with repeated reduced offers.

If you really believe that the EA 'made up' offers, you can report them to trading standards or their professional association. At best they would get a slap on the wrist. It won't make the seller accept a lower offer from you.

And being at war with the EA won't make for a smooth purchase.

If you believe you've offered too much for the property, I'd say your most realistic option is to withdraw your offer and walk away. The EA and seller won't take you seriously if you try to reduce it now.

xpi

You are right - if this was the "proper sealed bidding" as they describe it - he should open only on the final stage, tell the vendor, let us know the result. To be fair with all other bidders he should not give us any recommendation. So it was "smth" but not the proper sealed bidding. We should ask the exact conditions before we were making the offer.

Miss_Samantha

G_M makes very good point that, as the name implies, sealed bids should be made in a sealed envelope to be opened at an agreed time and place.
If done correctly, the bids should be opened publicly.

Is it really what the agent is doing?
Did you really seal your bid?

You need to enquire about the rules and satisfy yourself that they will be respected before you decide to play.

eddddy

Miss_Samantha wrote: »

G_M makes very good point that, as the name implies, sealed bids should be made in a sealed envelope to be opened at an agreed time and place.
If done correctly, the bids should be opened publicly.

Is it really what the agent is doing?
Did you really seal your bid?

You need to enquire about the rules and satisfy yourself that they will be respected before you decide to play.

I wonder if you might be 'over thinking' this.

- You decide how much you want to pay
- You make your offer (it doesn't matter much whether it's verbal, written or whatever)
- The vendor considers the offers, and decides which one to accept, or perhaps declines them all or tells the EA to go back and ask bidders for more, or whatever.


The OP is just having a small episode of buyer's remorse, because an assertive EA persuaded him/her to offer £X, which the vendor accepted. And the OP is wondering whether the vendor would have accepted an offer of £X less 5%.

marksoton

I really can't see you have any recourse here.

Either you pay what you offered or walk away.

xpi

Yes, generally being pushed by initial condition "you will make an offer; offers will be opened all together; the best offer will be chosen" and then "your offer is too low; there are 2 other offers around X". I'd like to know if I could check that other offers really existed (I guess it is not likely to know). Probably you are right - it is hard to change anything. But just it is good to know what cards were in the other hands afterwards!

Guys you all understand the situation well! Hah, sure it is "a small episode of buyer's remorse"!

ognum

The vendor is not obliged to accept the top offer whether the bids are sealed or not.

Any vendor will look at the position of all purchasers and their ability to proceed with their offer.

So OP, you will never know!