Sealed bids

Sidd

Does anyone have any experience with sealed bids? I'm currently bidding on a property against someone else (at least according to the EA!!) and he's indicated it may go to a sealed bid. I understand the concept but am unsure of how the process would work
Also, is there anyway I can find out if other 'bids' are actually real or not.
Am a bit worried he might be just trying to squeeze me.
Thanks for the help!

kippy

Sidd wrote: »

Does anyone have any experience with sealed bids? I'm currently bidding on a property against someone else (at least according to the EA!!) and he's indicated it may go to a sealed bid. I understand the concept but am unsure of how the process would work
Also, is there anyway I can find out if other 'bids' are actually real or not.
Am a bit worried he might be just trying to squeeze me.
Thanks for the help!

Walk away or approach the seller directly.

blue_steel

My parents bought a house by sealed bid in the 90s but I have never heard of it since to be honest.

Sidd

kippy wrote: »

Walk away or approach the seller directly.

Kippy, are there ay issues doing this (approaching the seller directly), legal or otherwise?

kippy

Sidd wrote: »

Kippy, are there ay issues doing this (approaching the seller directly), legal or otherwise?

I don't believe there are any legal issues stopping you approaching the seller directly. They may not want to deal with you directly however.

I've heard of it being done countless times. So long as you've both got decent solicitors theres no real NEED for an EA - they do feck all for their money from what I've seen.

Sidd

May try to do that if he tries to push this, have had a dodgy feeling about the EA from the start.

kippy

Sidd wrote: »

May try to do that if he tries to push this, have had a dodgy feeling about the EA from the start.

Trust your instincts.

athtrasna

A story of our experience 3 years ago....house on the market at 500k, us and another couple involved. Price was going up and up, at 650 we said to the agent, that we would pay 700 if it was taken off the market immediately (we really, really wanted that house). The reply was "our client will not be dictated to".

Next thing we got was a call to say 48 hrs to make a sealed bid (highest offer and signed documentation from solicitor to verify we could pay that much). After much agonising and little sleep we decided to pull out. Other couple were never told this and paid 820k :eek:

Saw an almost identical house on same road late last year...market price 385k. How lucky were we that we didn't get that original house, and how awful for the purchasers.

Sealed bids are a disaster, walk away. I'm so glad we did.

The_Conductor

Sealed bids were very common in the 1980s-1990s, but with the advent of potential buyers making irrational bids against each other- estate agents abondoned them, as there was no upside for them.

Unless its a national estate agent of good repute- I'd tell the EA to stuff it.

antoinolachtnai

Unless this is a really unique property, I wouldn't think a buyer would be well served by doing a sealed bid. It's a buyer's market after all. It doesn't matter who the EA is if you ask me.

You could put in a sealed bid for whatever your last offer was, I suppose, or you could just tell him that your offer is your offer. I would speak to a solicitor before putting a bid in writing to make sure that you do not make a binding bid before you have done surveys and had an opportunity to check the title to make sure everything is legally in order.

belmulletman

I bought my property last year that ended up in sealed bids.
Didn't think much of it tbh. Gave what I thought was my best offer. Ended up paying 50euro more than asking price.
EA showed me all the other bids once the sale had gone through.
Like you OP, i was very doubtful of the EA, but there was nothing that could be done.

kmick

Tell the EA to take a hike. Sealed bids only benenfit the seller and its a buyers market. Dont get involved in ANY sort of bidding war right now. Bids and accepted offers are falling through all over the place. Whatever your last offer to the EA was tell them its on the table for a week and then you have seen somewhere else nice and have put in a bid on that also. Be prepared to walk away.

antoinolachtnai

You could say to the agent that the best thing to do might be for himself, yourself and the other bidder to meet and you can bid it out in person. Or the agent should hold an auction. That way at least you all know that all the parties actually exist.

There is nothing wrong with a bidding war per se, providing there is real value to be had and there actually are other bidders. The starting price might be very low. The OP will have to decide in conjunction with advisers whether there is value here or not.

belmulletman

OP,
If the place is right for you and you think it's the right one, do what ever you feel is right.
I was given the same "Advice" re: telling the EA to take a hike, but I'm glad I didn't, it was a buyers market last year as well, and this was the property for me so I have no regrets it going to sealed bids and glad I got it in the end!
Each to their own at the end of the day!

Good luck with what ever you decide doing.

mathie

They'd sealed bids in the estate that we're renting in now.
The whole estate was built four years ago and sold via sealed bid.
All I know is 2-3 years ago houses were 500-550K.
Now they're going for 290K.

The market has changed now so I'd think long and hard about what it's worth. Work out the yield. Then make a lowball sealed bid.

The crazy days of bidding over the odds are gone.
Don't think that there are many competing bids out there.
Assume it's just yourself and you're making an offer that the buyer would accept ... if their hands were tied.
They could be forced to sell and you might get a bargain.

Best of luck!

who what when

What exactly is a sealed bid?

belmulletman

who what when wrote: »

What exactly is a sealed bid?

It's where you give your best and final offer, sealed. as in, once they offers are in and viewed, who ever put in the best one, gets the property (or offered it at least if you know what I mean)

Dymo

There's nothing wrong with it as long as you bid what you can afford and don't go a penny more. Then you can walk away happy knowing you did your best, if you won the bid you could be wondering could you have saved more. I know of a plot of development land put to tender and the winning tender was €1.5 million higher than the next bid.

D3PO

walk away.

Its a buyers market. Sealed bids my ass.

quozl

D3PO wrote: »

walk away.

Its a buyers market. Sealed bids my ass.

Absolutely.

Blizzard

Don't walk....run away from this! With the market today, I cannot believe they are asking for this. Why pay more than you have to? That's just my opinion, but I wish you luck whatever you decide to do.:)

ricman

Theres loads of houses for sale ,theres no reason to get into sealed bids.
Even 3 years ago i cant believe some1 paid 200k plus over the advertised price.Most sellers are desperate to sell, its hard to get a mortgage.

belmulletman

ricman wrote: »

Theres loads of houses for sale ,theres no reason to get into sealed bids.
Even 3 years ago i cant believe some1 paid 200k plus over the advertised price.Most sellers are desperate to sell, its hard to get a mortgage.

And ricman, what happens if someone just feels this is the right place for them? are you saying they should walk away and take the chance of not finding out they like again (in saying that they could easily find somewhere else, but there's always a chance that by walking away you'll regret it for the rest of your life!)

In my case, I went 47euro over asking and got the property and have never been happier or regretted it a day since!

quozl

belmulletman wrote: »

And ricman, what happens if someone just feels this is the right place for them? are you saying they should walk away and take the chance of not finding out they like again (in saying that they could easily find somewhere else, but there's always a chance that by walking away you'll regret it for the rest of your life!)

That's a ridiculous idea. There's no one right house, there's hundreds of them.

That attitude is irrational and a receipe for major over-paying.

ricman

lets say if i was buying a 3bed semi now ,i d pay 180k max, but then i have no desire to live in a certain area.I JUST wanna be near shops, and a bus route into town.i might offer 180 thru sealed bid , but id say to the agent im offering x ,and frankly i dont care if my bid falls thru, theres 1000s of homes on the market.Once you pay over 130k, you are really paying to live in a certain area,estate on street.

belmulletman

quozl wrote: »

That's a ridiculous idea. There's no one right house, there's hundreds of them.

That attitude is irrational and a receipe for major over-paying.

That exactly like saying, there's no "right person" for anyone, theres hundreds of them, and that's complete BS!

I looked at HUNDREDS of properties and the one I ended up getting (through a sealed bid) was the right one! I know it. Right place, right size, etc...

I completely agree that you shouldn't over pay, but I would never advise someone to walk away because it's gone to sealed bids. Put the offer your most comfortable with and if it's meant to be, it'll be!

quozl

belmulletman wrote: »

That exactly like saying, there's no "right person" for anyone, theres hundreds of them, and that's complete BS!

It is exactly like that, and it is also true.

Do you really believe that there is one, single person out there for you in the billions? And you magically find them?

There are a vast number of houses, and partners, out there that you would be happy with. There is no unique one.

I stand by my opinion that your argument is irrational.

belmulletman

quozl wrote: »

It is exactly like that, and it is also true.

Do you really believe that there is one, single person out there for you in the billions? And you magically find them?

There are a vast number of houses, and partners, out there that you would be happy with. There is no unique one.

I stand by my opinion that your argument is irrational.

That's fair enough, you can stand by your opinion and I can think it's wrong!
I don't want to just "be happy with" my partner / property / what ever, I want it to be right and to love it! It might be a bit much to ask for, but I've stuck to my guns and it's worked out for me.

I'm outta this thread now. OP, Good Luck what ever you end up doing.

ricman

use my home.ie, daft.ie See what are similar homes priced at,you might pay a bit extra cos the garden is big ,kitchen is new etc ITS in a nice quiet small cul de sac with quiet neighbours eg no kids.OR its bigger than the average semi d .

quozl

ricman wrote: »

use my home.ie, daft.ie See what are similar homes priced at,you might pay a bit extra cos the garden is big ,kitchen is new etc ITS in a nice quiet small cul de sac with quiet neighbours eg no kids.OR its bigger than the average semi d .

However asking prices are pretty much universally accepted as not being realistic, and houses are shifting below asking price.

So if you base the number to put in a sealed bid on asking prices of equivalent houses you will be over-paying.

Sealed bids are an attempt to prevent the potential purchaser haggling at all. It's a trick to try to get them to overpay. They are more likely to put in the maximum they are comfortable to pay, rather than bargain upwards from a lower number.

The EA is trying to take advantage of the OP. There is no other reason for sealed bids nowadays.

ricman

theres no case for sealed bids on a standard 3bed house ,might make sense if you are buying a mansion in west cork with acres of land around it, ie a unique property .

displaced dub

Run. Wouldn't touch a sealed bid process.

You can approach the seller yourself god knows enough buyers knocked on my door the last time i was selling a house,

Keith C

type in the area address to www.irishpropertywatch.com & see how long the house has been on the market & if there have been price drops.

Will also show any houses that sold (or are still for sale) from last few years.