If there’s considerable interest in your property at its asking price, consider asking prospective buyers to submit their ‘best-and-final offers’.
By using a sealed bid system, you set the time and date of when all bids should be in by. You then decide, based on the information provided, who to sell your property to.
We discuss how to consider a sealed bid offer on your home.
Method of sealed bids
Sealed bidding is a way to avoid time wasters, as only those who have a high level of interest will make an offer.
Set the asking price according to what similar properties are selling for in your area. If you set the guide price too high, you run the risk of having no interest.
Of course, you can set the price below what you would like, in the hope that you can create a bidding war.
However, bear in mind that if the winning bidder feels like they have over-paid for your property, they may withdraw their offer further down the line.
Also, it’s worth remembering that the highest bidder may not necessarily be the most suitable buyer for your property. There can be other issues at play.
Don’t get carried away with the thought of selling your property above its perceived value, as you run the risk of the deal falling through.
It will still need to ‘value-up’ when the buyer’s surveyor inspects your property. The only time the deal is done is when you have exchanged contracts.
Sealed bidding procedures
To give your sale the best chance of going through to completion, try and garner as much information as possible from prospective buyers.
Also, make sure you stipulate that all bids be accompanied by a covering letter. What’s included in this letter is up to you to specify. The focus should be to establish how able your buyer is to proceed with the deal, and whether they are committed.
You may want to know:
- Do they have a mortgage offer in principle in place, and who from?
- How much cash are they using as a deposit?
- Are they in a chain? If so, what stage are they at in selling their property?
- Are they a first-time buyer?
- Are they currently renting?
- Do they have a solicitor? If so, ask them to provide details.
- When would they ideally like to complete and move into the property?
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