You may have noticed properties for sale by this method, but what does it actually mean and how does the process differ to a standard transaction?
This method of marketing is generally used for probate sales or the sale of vacant properties, often those with potential to improve, and benefits the seller by ensuring that the best possible price is achieved.
A ‘guide price’ is set and the property is widely advertised for a period of 3-4 weeks, with a final date for offers to be submitted specified from the outset.
Any offer must be given in writing and placed within a sealed envelope clearly marked with the property address as reference, we will supply a form to complete which identifies any required information to strengthen a bid, such as whether your offer is dependent upon the sale of an existing property and, if so, whether that is on the market or already sold (stc), and how you intend to fund the purchase, by mortgage or cash for example. On the closing date, the seller will be invited to our office to open all the ‘sealed bids’.
For the buyer, this may feel a little like a ‘blind auction’ but ensuring that your bid is the maximum that you are able and prepared to pay will give you the best possible chance of securing the property.
Some buyers may enclose a personal letter with their bid with a little more background on their position, if there’s little between two offers this could just make the difference between your offer being the one that’s accepted.
It is important to remember that the purchasing position of the buyer can have as much importance as the offer itself, so if you do need to sell a home in order to buy it’s vital to get your property on the market as soon as possible, and ideally to have a buyer in place yourself before the tender closes. In the current fast moving market this can be achievable within the 3-4 weeks that the tender runs.
If you have a property that you think may benefit from this method of marketing or you’re interested in a property that we’re marketing by Informal Tender and want more advice on placing your bid, please give our Flitwick team a call on 01525 721000, we’ll be happy to help.