How to offer on property with POA and Sale by tender

bhalright73

Good morning all, I found a property in a very desirable location marketed as POA and sale by tender. It is first time for me to try this game. I did some online research and got the meaning of Sale by tender and how it works; but seems there is no more information about offering on POA with sale by tender. Without asking price, how much should I offer as the best offer to wim the bid? I am thinking to get similar properties sales history to be guidelines; unluckily, the whole street has no similar properties sold recently, the most recent sales was in 2017 and it is a flat; the one I am talking about is a detached house. Could anyone give me some tips? Thank you! 

eddddy

Ask the estate agent what they expect it to sell for.

The EA will probably be realistic. They won't want to scare you off, by suggesting a high price. And they won't want to waste everyone's time by suggesting a low price.


TBH, in theory, you can go back with a higher offer after the tender has closed if you want, and since it's being sold under POA, a late higher offer is likely to be accepted. (But that's gazumping really)

But the EA probably won't tell people the amount of the offer that's been accepted, to stop that happening.

greatcrested

The atourney has to be able to prove he got the best price possible on behalf of the donor (owner). Selling by tender is one way to do this as he can show that everyone interested had an equal chance to bid and he sold for the highest price the market would bear.

* Research the localmarkey, looking at recent 'sold' prices.

* speak to several EAs

* decide what you would be willing to pay (eg ask yourself, if I bid £300K and it sold for £330K would I regret not bidding higher? If I bid £350K and bought it, would I then regret paying so much?)

Bear in mind that it's likely that you could increase your offer later if you did not bid highest....

getmore4less

Could be "Price on application"

SalsaDanca

Does POA stand for Power Of Attorney or Price On Application?
If the house is listed on Rightmove, the estate agent will still have entered an price that isn't displayed. You can work out what it is by searching for all the houses in the area, sorting by value, and looking at the prices of houses before and after this house in the list.

bhalright73

getmore4less said:

Could be "Price on application"

Oh, I thought about Price on Application in the first place. Never thought about it as Power of Attorney... but it is sold on behalf of a company who owns this property.

bhalright73

SalsaDanca said:

Does POA stand for Power Of Attorney or Price On Application?
If the house is listed on Rightmove, the estate agent will still have entered an price that isn't displayed. You can work out what it is by searching for all the houses in the area, sorting by value, and looking at the prices of houses before and after this house in the list.

I found it on Rightmove and marked as POA and for sale by tender. In this case, it should be Power of Attorney? Didn’t ask detailed to the EA yet; they seems to have £200 registration fee and then all the legal documents will be sent over to me. 

davidmcn

bhalright73 said:

SalsaDanca said:

Does POA stand for Power Of Attorney or Price On Application?
If the house is listed on Rightmove, the estate agent will still have entered an price that isn't displayed. You can work out what it is by searching for all the houses in the area, sorting by value, and looking at the prices of houses before and after this house in the list.

I found it on Rightmove and marked as POA and for sale by tender. In this case, it should be Power of Attorney?

No, it means price on application. Even if it were being sold by an attorney, that's not something normally stated in a Rightmove listing (or particularly relevant to buyers).

bhalright73

davidmcn said:

bhalright73 said:

SalsaDanca said:

Does POA stand for Power Of Attorney or Price On Application?
If the house is listed on Rightmove, the estate agent will still have entered an price that isn't displayed. You can work out what it is by searching for all the houses in the area, sorting by value, and looking at the prices of houses before and after this house in the list.

I found it on Rightmove and marked as POA and for sale by tender. In this case, it should be Power of Attorney?

No, it means price on application. Even if it were being sold by an attorney, that's not something normally stated in a Rightmove listing (or particularly relevant to buyers).

I see. Actually, price on application is similar to sale by tender, isn’t it? They both take the highest offer price. 

davidmcn

bhalright73 said:

davidmcn said:

bhalright73 said:

SalsaDanca said:

Does POA stand for Power Of Attorney or Price On Application?
If the house is listed on Rightmove, the estate agent will still have entered an price that isn't displayed. You can work out what it is by searching for all the houses in the area, sorting by value, and looking at the prices of houses before and after this house in the list.

I found it on Rightmove and marked as POA and for sale by tender. In this case, it should be Power of Attorney?

No, it means price on application. Even if it were being sold by an attorney, that's not something normally stated in a Rightmove listing (or particularly relevant to buyers).

I see. Actually, price on application is similar to sale by tender, isn’t it? They both take the highest offer price. 

"Price on application" just means "we're not publicly stating an asking price". So it may literally mean "contact us and we'll tell you the price". But I suppose it could also mean "we don't have an asking price, give us your offers".

bhalright73

davidmcn said:

bhalright73 said:

davidmcn said:

bhalright73 said:

SalsaDanca said:

Does POA stand for Power Of Attorney or Price On Application?
If the house is listed on Rightmove, the estate agent will still have entered an price that isn't displayed. You can work out what it is by searching for all the houses in the area, sorting by value, and looking at the prices of houses before and after this house in the list.

I found it on Rightmove and marked as POA and for sale by tender. In this case, it should be Power of Attorney?

No, it means price on application. Even if it were being sold by an attorney, that's not something normally stated in a Rightmove listing (or particularly relevant to buyers).

I see. Actually, price on application is similar to sale by tender, isn’t it? They both take the highest offer price. 

"Price on application" just means "we're not publicly stating an asking price". So it may literally mean "contact us and we'll tell you the price". But I suppose it could also mean "we don't have an asking price, give us your offers".

Combining the term of sale by tender, I think the later is what they mean: give us your offer. Do you think if I ask the EA for a price guideline, they will answer?