Sealed bids and gazumped

[Deleted User]

You could try dropping a letter off at the sellers house, saying you have offered x in a sealed bids position but that was your best and final offer, just in case the EA is playing silly so and so's.

Carrot007

Whenever sealed bids has been mention to me one of two things occurs.


1. I remove all bids.


2. I reduce the bid.


Just shows you the seller will ikely pull out at the last minute if there is a sniff of more money.

comedyseeker123

What is sealed bids?

FTB123456789

Thanks all, it’s certainly left a bad taste in my mouth, reassuring to see others find it in bad taste too and that this isn’t the norm!

walwyn1978

comedyseeker123 wrote: »

What is sealed bids?

If done in the regular way, all interested parties put in a bid (best and final).

All bids then opened at the same time and evaluated, and the vendor, usually advised by the EA and possibly their solicitor, picks the bid they want to proceed with.

In theory, it’s a way to cut out the hassle of negotiating and time wasted.

In practice, some people hate it, and won’t engage with properties that are listed asking for sealed bids, which can cut down your available buyers.

csgohan4

well done OP for not caving in. If they don't honour sealed bids what else won't they do?


I would leave a reduced offer on the table at 295k and view other properties with the EA to ensure you are not interesting in being manipulated anymore.

getmore4less

FTB123456789 wrote: »

Hi all
Hope any more experienced people can give their opinion on my situation.
FTB here with a mortgage in principle and 10% deposit. Have found the perfect house in the right location, guide price 300k. went in with an offer of 290k and was told too low. Increased to 295, at which point was told there were three other offers on the table so went to sealed bids. EA asked for best and final offer so offered 296.5k.

Was then called several days later to say there was a higher offer than mine on the table but if I could up to 298k the seller would likely accept as he was keen that I was FTB with no chain. I agreed and the offer was accepted.
Less than an hour later EA called back to state the other buyer had upped their offer and could I now increase mine. I wasn’t keen to so EA asked me again for a further best and final offer, stating there’d be no more offers taken after this. I pointed out this was what was said several days earlier at the first sealed bid yet here we are again! Thus held at my

What are your thoughts on this?
I’m wary of being led up the garden path bidding higher, have no idea whether this other buyer actually exists, and to be frank have lost trust that despite the EA stating best and final offers, has now taken further bids.

I know sealed bids aren’t legally binding but I question the integrity of the EA and the seller, as far as I know mine is the third offer he’s accepted then retracted for a better one within hours!

That was not your best and final offer you went higher.
Pot kettle etc.

Tell them you are going back to your original best and final you made a mistake you have more in the pot.

Mickygg

No way would I have increased again after sealed bids. The seller wants their cake and eat it....they go to sealed bids to try to get as much money as possible, hoping someone will offer way over £300k. That didn’t work so next minute they ask you to up your best and final offer.
That alone would 100% cause me to say my sealed bid offer is on table for next 2 days, I don’t appreciate being taken for a ride. Then I really would look for another.

Cakeguts

I would withdraw the offer and find something else. You cannot now trust this seller. You could get several months into buying the property spend a lot of money on searches etc and then the seller could sell to a random person who offered a bit more.

AdrianC

"Sealed bids" isn't necessarily "best and final". It's just "There's a few of you making an offer, but we won't tell you what the other offers are".

The seller can, of course, pick and choose and come back to whichever bidder they want, as many times as they want, no matter how they choose to dress it. It ain't over till the fat lady exchanges.