In a sellers' market, the sealed bids process - setting a guide price and inviting offers to be submitted, confidentally, by a closing date - can be a way of realising the best possible price for a property.
If you're thinking about selling your house using the sealed bid process, there are lots of factors to take into consideration. Follow our tips to find out how to go about it successfully.
1 Is Your Agent Experienced?
Ensure that you engage an estate agent who has proven experience in the sealed bid process. Like auction, it is not a facility offered by all.
2 Is Your Property Suitable?
Check with your agent that your property is suitable for this marketing medium. Some are not.
3 Considering The Guide Price
Remember that, like an auction price guide, the guide price your agent recommends will in almost all cases be less than the price you will be trying achieve through the process.
4 What Are Your Expectations?
Discuss your financial expectations at the beginning of the process. Success at sealed bid is all in the planning. Fail to prepare and prepare to fail...
5 Is The Bid Process Clear For Purchasers?
Sometimes the purchaser(s) will not fully understand the sealed bid process. Ensure that your agent includes a clear and unambiguous guide within the construct of your property sales particulars, which sets out in clear terms what is expected of your chosen purchaser and all participants.
6 Preparing For Early Offers
Be prepared to be approached during the proceedings by those wishing to 'short circuit' the sealed bid process by making an early offer, often accompanied by the excuse that they will not be able to make the deadlines or viewing dates. Your agent will advise in this respect.
7 Set A Viewing Date
Try to arrange a specific viewing day or days, rather than having appointments booked via your agent at random times. Your agent will support this as it is more practical and cost efficient to have a member of staff on site all day with all viewers, than to visit the property several times over three or four days. It is also not unhelpful for viewers to be aware of each other, as it implies competition amongst them and this may assist your final bid price.
8 Set Dates
The sealed bid envelopes should be sent to your agent's offices or your solicitor's by a clear closing date and time (typically close of business on a Friday). It is not a bad idea to have the 'opening' at your solicitors offices. People don't entirely trust sealed bid so all assurances that their bid will be confidential and not 'compromised' in anyway will be well received.
9 What's The Best Bid?
Remember, the highest bid may not be the best bid. Your agent will advise on the status, price and quality of each bid by virtue of their prior research and knowledge of the client(s).
10 Sealing The Deal
The sealed bid application form should include all contact details (including email), a precis of the client's position to proceed if their bid is successful, the price they are offering, their solicitor's contact details and usually a financial summary that will give an indication as to whether the purchase would be made from accessible cash funds or by mortgage or other lending.
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