How, to win an Informal Tender

BabyGolly

Hi. I want to purchase a property and make it my forever home. I have never bought by tender before. Worried I may either bid too low and loose the property or pay over the odds because I really want it. Any tips on making a successful bid, please. Thanks 

princeofpounds

What is this 'tender'? Is it the dreaded 'modern method of auction'?

(I know what a tender is, just not what THIS tender is)

Comms69

BabyGolly said:

Hi. I want to purchase a property and make it my forever home. I have never bought by tender before. Worried I may either bid too low and loose the property or pay over the odds because I really want it. Any tips on making a successful bid, please. Thanks 

Please supply a link as to what this means

theartfullodger

Did you mean "Informal Tender" or perhaps as I suspect the paperwork actual says, rather "Formal Tender"???

see also..

https://forums.moneysavingexpert.com/discussion/5216297/sale-by-formal-tender

davidmcn

I suspect it just means a closing date for (informal) offers.

eddddy

BabyGolly said:

Hi. I want to purchase a property and make it my forever home. I have never bought by tender before. Worried I may either bid too low and loose the property or pay over the odds because I really want it. Any tips on making a successful bid, please. Thanks 

It's worth chatting with the EA, they might (or might not) give you some helpful info.

The way I would phrase a question is something like: "What kind of bid do you think I'd need to make in order to be successful?".

In my experience, I've often got fairly helpful answers. The EA won't want to scare you away from submitting an offer, by suggesting an unnecessarily high number.

trex227

Assuming you mean the estate agent has asked for written best and final offers by x date and the seller will proceed with that offer there’s not a lot more you can do other than offer the maximum you can afford/are prepared to offer.

My sister bought garages this way. Frankly she purposely submitted a bid over the value of them solely as garages to ensure she definitely got them. This was because having private parking (which she previously didn’t) was worth this to her.

Conversely years ago my parents lost out on a property by less than 5%. There wasn’t a lot they could do- they offered what they were able to but someone offered more (they only found out how little they lost out on it by when the seller later told them).

Are you buying with a mortgage or cash? If you’re buying cash you have the flexibility to pay what you think it’s worth whereas if you need a mortgage, depending on how much deposit you are putting down, you might be constrained by the valuation the lender puts on the property.

Unicorn_cottage

@BabyGolly do you mean sealed bids?

eddddy

Unicorn_cottage said:

@BabyGolly do you mean sealed bids?

The terms 'Informal Tender' and 'Sealed Bids' are often used to mean the same thing.

I guess the term 'Sealed Bids' kind-of implies that all the offers will be opened at the same time (after the closing date), whereas there isn't that same implication with an 'informal tender'.

FWIW, the offers almost certainly won't be binding, and the seller won't be obliged to accept the highest offer - or any offer at all.

And if somebody 'loses' by offering too little, there's nothing to stop them making another higher offer afterwards. (Although it might annoy the EA, and it's up to the seller whether they accept a late offer.)  

marileespeed

In the matter of selling any expensive thing, two points must be followed. The first point is to compare the prices of the same type of product (in your case real estate) for example on the Internet.

theartfullodger

Easy: Offer a high price, cash offer so no need to wait for / be rejected by mortgage, no survey required, completion date flexible (eg next Monday or in 6 months time, whatever suits seller...)