Need advice on selling or buying by Tender or Auction? Jason Lee from Secure My Sales Estate Agents a Fellow of National Auctioneers & Valuers Association (NAVA) gives some tips.
Sale By Tender Is A Different Way Of Selling A Property
There can be a lot of confusion surrounding the practice of SBT or Sale By Tender, as a number of sellers in Grantham have been asking us whether this could be the best option for them. This somewhat controversial tactic is something that sellers should be aware of, so here at Secure My Sale Estate Agents, we’re giving you the information you need about how selling your home in this way could affect your final sale price, and what the process really means for you and your prospective buyers.
Sale By Tender – What Is It?
Sale By Tender represents a different way of selling a property. Rather than putting your property on the market in a typical way, a sale by tender requires prospective buyers to put in their single bid before a certain time.
The process involves the use of sealed bids, so none of the bidders knows how much their competing buyers have bid for the property. Sometimes, there isn’t even an available guide price, so bidders must do all the research themselves to estimate the property’s value independently. Generally, though, buyers are permitted to view the property during an open day before the deadline for the silent auction.
Should I Sell My Property By Sale By Tender?
If you want maximum control over the timeframe of your property sale, you may consider selling by sale by tender. As you set the deadline, you’ve got more control. However, there’s a key factor to consider – and that’s demand. When there’s a lack of demand for the property, you should avoid the sale by tender method.
You should only really consider sale by tender for your property if your home is in a high-demand category. Ideally, it should be a popular property type, in a popular area in a high-demand marketplace. That means there are lots of variables at play. When your home ticks all of these boxes, silent auctions with sealed bids can give you a profitable result.
Are All Sealed Bids Genuine?
In most cases, the agent who handles the sale vets all the prospective buyers before placing their bids to ensure they can complete should they win the auction. During the vetting process, their status and whether they already have a mortgage in principle will be considered to prevent purchasers from bidding without being able to complete.
Will The Sealed Bids Meet The Asking Price?
Although there aren’t any guarantees, asking prices or guide prices are usually met and can often be exceeded, but only in cases where there is sufficient demand. In a low-demand market you may end up with just one bid.
Must I Accept The Highest Bidder’s Offer?
You’re under no obligation to accept the winning bid. You’ve got the final say and remain in control of the process. But the timing could be an issue. If you’ve chosen to sell in this way because you needed to achieve a sale by a specific date, it’s possible you may be forced into accepting the offer even if you aren’t happy with it.
Like more information on tender or auctions?
To learn more about the best way to sell your home in Grantham, contact our team ar Secure My Sale Estate Agents in Grantham today at support@securemysale.co.uk or on 01476825258. We’ll give you all the expert information you need to make a well-informed decision based on years of service and knowledge in the area. www.securemysale.co.uk
