Q&A: Sealed bids
This week's question is from P. Spungin: 
I have seen a property that I would like to buy. Several other people are interested as well and there have three offers at the asking price and more are expected. The estate agent says it will be decided by sealed bid. Do your experts have any advice on how to play this? What percentage over the asking price is usual? Is it possible to put in a bid that says £10 over the highest bid rceived?
I am an unencumbered buyer with nothing to sell, a 30% deposit and mortgage arranged. Does this count for anything in the case of sealed bids?
Nick Leeming, Propertyfinder.com's property expert (and chartered surveyor/former estate agent) suggests:
There are a number of ways in which the sale of a property can be concluded when there is competing interest and sealed bids is probably the most frustrating for the buyer!
As a bidder you cannot be sure where to pitch your offer and bids with reference to another bid level (i.e. £10 above the highest other offer) are normally forbidden. There are no rules as to how much above the guide price you should offer, so you will have to judge at what level you are in genuine competition and bid accordingly.
Clearly a second opinion on the true value of a property may be helpful for you, while your own circumstances and the suitability of the property to your needs will also need to be taken into account.You should anyway be one step ahead of some others if you have no other property to sell and a mortgage arranged: make the most of this in your offer letter as the vendor will not just be looking at the highest offer, but also at the one that is most likely to complete.
Do you have a question for our estate agents and property experts? Please let us know below, or read our previous Q&As.
Comments
how long does the vender have to make a decision on a sealed bid and let the buyers know
Posted by: michelle bailey | March 11, 2008 10:19 AM
It is good practice for the vendor’s agent to advise the outcome of sealed bids on the same day as the deadline set for their submission. If this has not happened within 24 hours I would be calling the agent and finding out what the position is and how they propose to conclude matters.
Posted by: Nick Lemming | March 26, 2008 11:41 AM