As competition is getting tougher for Tamworth house hunters, are sealed bids the answer to secure a house sale?
Sealed bids are supposedly a quick way to proceed and can offer advantages to both buyers and sellers.
Without knowing what the competition is offering, bidders are asked to put their offer in a sealed envelope, a bit like the Masons, where everything is built around secrecy. Nobody knows what anyone else is up to and many sleepless hours are spent awaiting the vendors decision.
On the appointed day, the envelopes are opened and the vendor and agent go through them, the vendor then accepts the offer of his choice. Not necessarily the highest offer!
This however is not a guarantee that the sale will complete. The vendor may suddenly decide to accept a different offer or the purchaser may come to the conclusion that the rather hasty offer made was totally too much.
Guidelines for buyers..
- Research recently achieved prices in the area. This will serve as a useful guide when deciding on your bid offer.
- Offer what you are prepared to pay. Don’t take a chance with a very low bid.
- Have a survey done in advance as vendors like offers that are not “subject to survey”.
- When deciding on a figure to offer, perhaps offer slightly more and as an uneven figure. People tend to round up, so your irregular figure could just seal the deal.
- Make sure you have all your finances in order.
- When submitting your bid, send a covering letter which provides all the facts – bid offer, buying position, proof of funds, proof of mortgage offer, details of your conveyance solicitor, your proposed timings for exchange and completion.
- Hand deliver your bid offer to the agent.
Guidelines for sellers..
- Consider all the offers on the table. Your aim may be to achieve the highest possible price. But is the highest bid the best buyer for your position.
- How soon can they move? Are the buyers prepared to wait if there is a delay in selling, for whatever reason.
- Are they in a chain?
- Have they appointed a conveyancing solicitor?
Finally, properties can sell for more than the guide price and only with the signing of contracts, as with any other property transaction, is the deal final.
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