if an estate agent is offering a property for sale and it is sealed bid only what does that mean?

Answer 1

It means you will make your bid and deliver it to them where it will remain sealed until the appointed time when all bids will be opened and the highest bidder wins.

Answer 2

We attempted to purchase a house using this method a few years ago.

They had an open viewing day and all bids were to be received 2 weeks later.

We knew 2 of the other people who placed a bid.

A Friend of ours was a builder and he placed the highest bid with a view to developing the property.

We placed the second highest bid but needed to sell our property before we would be in a position to proceed and would form a chain.

I know the person who's bid was successful. They bid £2000 less than us but were chain free and had their mortgage offer in place and ready to go. They planned to refurbish and have it as their family home.

So its not always the highest bidder that wins.

In my experience its a combination of a good price and being in a good position. Your plans for the property could also be significant.

When you place your bid give as much information as you can to enhance your chances.

Answer 3

You put your maximum bid in a sealed envelope and submit it to the estate agent by a fixed time. It's a bit like a blind auction - very popular in Scotland. The top bid usually wins. It's harsh but quick.

A good place for all house buying and selling like this is the website below...

Answer 4

What it means is the property will be sold to the highest bidder. All interested parties writes down on a piece of paper what they will pay for the property seal it in an envelope and hand it to the seller. At the end of the sale all envelopes are opened and the highest bidder wins

Answer 5

It means you are not allowed to know what other offers have been put in and they are not allowed to know your bid either. You submit your offer, along with other who want the property and the highest one is allowed to buy it.

Unfortunately it could mean paying over the odds for the property if you wish to secure it. If you bid too low you'll lose it but how high is high enough when you don't know what others are offering. People may bid OVER the asking price.

Unless you are desperate for this particular property, I'd steer clear! Good luck though

Answer 6

this is the agent's way of pushing up the price. it is currently a seller's market and several buyers go for same properties. it is utterly unfair but estate agents are only interested in their commision and will do anythig to push up the price. be careful if you put in a bid, not much point spending any money until you ve been accepted but unfortunately even then there's no guarantee the seller will go with you.

Answer 7

It means you have to bid for the property in sealed envelopes.
The vendor will then choose who to sell it to, not necessarily the highest bid but also dependant on how quickly you could exchange contracts, if you're a cash buyer etc...

Answer 8

A sealed bid auction is a type of auction

In a sealed bid auction, each participant submits a secret, or sealed, bid on each of the item to be auctioned.

The item goes to the highest bidder, who pays either his or her bid, the highest, or the second highest.

Answer 9

You have to put your bid in an envelope, or they may have forms for you to use, and you seal the envelope... when they're ready they'll open them all and the best bid wins....

Answer 10

it means that you have to write your bid down and put it in an envelope. they are all opened at the same time. the best one wins