Buying by informal tender?

[AdamW]

Has anyone here bought a house through "informal tender" before?

As I understand it, this is where all interested parties make an offer by a given deadline, and then the seller chooses the bid they wish to accept. Like the way they do things in Scotland I think.

Anyway, tomorrow I'm looking at a house that is being sold in this manner, was wondering if anyone has good and/or bad experiences of this method. Any tips?

 

[mlb3c]

no tips....just fyi...it's common here

 

[Richardp]

isnt it a dutch auction? they have them here a lot. if it is its not nice , makes young people put in much more than they can afford.

 

[noodlz]

Most important are the things you should do for buying a house whatever way you go about it, ie. structural soundness, searches, market value, neighbourhood, neighbours, necessary funding in place, any reason why shouldn't buy, chain(?) etc

But as far as tender, if you really want the place, just put in a bid that the house is worth to you . If you are interested and wouldn't mind buying but aren't that fussed, put in a lower bid and you might get lucky. Also depends if you have to pay any fees such as solicitors to do this or not.

Of course this system is potentially open to dodgy dealings/insider knowledge, but then so are other methods.

Common sense stuff, I'm sure you probably know...good luck!

 

[noodlz]

Dutch auctions are slightly different, RichardP.

Name comes from the selling of tulips in Holland, I think, where a lot of tulips are offered at a high price in an auction...if nobody buys at this price it is lowered and offered again until someone buys...this is a quick way to sell.

Informal tenders are when sealed bids are given by set date for a property, including details of the person's own position. They're all opened together, but the sale agreed with the person to be thought to be in the best position to buy, which is not necessarily the best bid (which is the case in Scotland with the formal tender)

 

[Moz]

noodlz
you said it all really regarding sealed bids , I dont like it as you/buyer are open to being ripped off by seller /estate agent , how do you know if those other offers are not half what you offered ...

 

[Richardp]

oooow! ta noodlz I dont want no tulips but them windmills would look nice in me garden.

 

[noodlz]

RichardP

Me too, love windmills - my Mum lived on the adjoined house to one that was on the old 10 krone note in Denmark. Glad to see Windy Miller finally getting his oats in the Quakers ad. Okay, that's me tangent windmill bit...got blown a bit off course!

Know what you mean Moz!
Estate agents/auctioneers - some of the scams enough of 'em pull
Seen auctioneers bidding off the wall to bump up price, one even admittted he did this on telly as if there was nothing wrong with it cos he was doing it for the seller, meanwhile some unsuspecting buyer ends up paying over the odds.

Had enough bad experiences with estate agents, I won't even go there!