What is your opinion of sealed bids as a buyer?
Asked on Aug 19 2013,
House Prices in London |
As a buyer, sealed bids are not ideal, basically because they are designed to let a seller capitalise on having a demand for the home from more than one interested party. Because buyers know that they are essentially competing against other people and that they really have only one shot to get the home, it means that people often have to bid higher than they originally intended to.
As a buyer, it mostly boils down to how much you want a property and how much you like it. you really need to be asking yourself just how much you are willing to spend, and set that as a boundary. As with any auction, you should never be looking to pay more than you intended to.
Answered on Sep 3 2013,
Nobody likes sealed bids but an agents obligation is to get the best possible price for their client and sealed bids is a very fair way of obtaining a buyers fair price.
Answered on Sep 20 2013,
I think they are terrible for the purchaser. They allow an assymetry of information in favour of the vendor. At no stage does he reveal the bottom price that he would accept. Furthermore he is not obliged to sell to the top sealed bidder. He can use the information he does have to manipulate the bidder. Purchasing and bidding is a game. Sealed bids give every power card to the vendor. Avoid. If you purchase a repossessed property you know that you are likely to be buying value and the vendors have a legal obligation to act honestly (through the public notice system) Auctions also give the purchaser a fairer crack of the whip. to access a live up to the minute database of repossessed properties go to the link below.
Web reference: http://www.diligentinvestments.com/repossessions/
Answered on Oct 7 2013,
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