Informal Tender

purpleems

Hi

I know I have already asked a question about tracking house prices, but I wondered if anyone could shed a bit of light on the 'informal tender' process.

I understand that this is sealed bids to the estate agents by a certain date, is it just the highest bidder who gets the property? Or do they take into account situations of bidders as well (i.e no chain, FTB etc?)

It's all a bit greek to me so if anyone could steer me in the right direction I'd be very grateful

Thanks
Em

WillowCat

You should see the specific details of the informal tender on the document the estate agent gives you.

However, in general, the vendors are not obliged to accept the highest, or even any offer.

The agents will often stipulate conditions - for example I've just had an offer accepted via sealed bids on a bungalow which had mundic foundations, and was therefore unmortgageable. The condition was, of course, to be a cash buyer. A higher offer than mine was received, but as they needed a mortgage (apparently had sourced a specialist mortgage) they did not meet conditions and the bid was rejected.

You can make your offer subject to whatever condition you like - for example subject to survey / planning permission / whatever, but bear in mind the vendor would probably look more favourably on offers which were only subject to contract.

Just like any regular house purchase, you'll be considered more favourably if you're FTB or in rented etc.

purpleems

Thank you very much WillowCat - we haven't spoken to the EA in detail as yet (due to working long hours) so it's good to know what sort of things we need to be asking them.

Thanks again for your helpful reply:j

Em x