Buyers Guide to Sealed Bids
Buyers Guide to Sealed Bids
Sealed bids are methods used by property agents to sell property that are in high demand. Contrary to popular belief, sealed bids are not only used when selling extremely expensive property, but the method is also used in selling cheap but on demand property.
Unlike in open bidding, in sealed bidding, the highest bidder doesn’t necessarily win the bid. This is because the agent and the vendor put into consideration several other factors other than the highest bid. For example, the vendor and the bidder will consider the financial situation of the bidder; can the bidder pay for the quoted amount?
Also, you should know that the vendor and the agent can award the property to anyone. Even after bidding has closed, if another bidder comes with a better offer, the vendor and the agent can always award the property to them.
Sealed Bid Process
Interested buyers are invited to bid for the property. The buyers are expected to make the final offer and send it via letter, fax or mail by a given deadline.
The process is usually a trying time to the buyer. This is because the buyer doesn’t know how much they should bid for. Also, the buyer doesn’t know the amount other bidders have bid.
How to Increase Your Odds of Winning
While sealed bidding is always daunting to most buyers, you can increase your chances of winning the bid by putting the following points into consideration.
Always read the rules given by the estate agent carefully. This ensures that your bid is not ignored or stacked in the trash can since you didn’t follow the correct rules of bidding.
Try to convince the vendor to accept your offer before you place the bid. When you do this, chances are that you will be awarded the property.
Always bid an amount that you can pay. Many people bid astronomical amounts that they think they should pay for the property; however, when they are asked to pay for the said amounts, they can’t pay. To increase your chances of winning a sealed bid, always bid amounts that you can pay.
Survey the property before the bidding day. This ensures that you have a clear picture of the property that you are bidding for; you have a realistic approximate value that you would pay for the property. When you make a bid with a value that is close to the real value of the property, your bid will look more attractive hence heightening your chances of winning.
Never miss a deadline; you should always submit your bid on time. While you should never miss a deadline, you should also not submit your bid too early. This will mark you as desperate. It’s recommended that you submit your bid a few minutes before deadline.
Use a buying agent. Buyers who use agents are perceived as more serious; therefore, you should increase your odds of winning the sealed bid by using an agent.
After submitting your bid, don’t expect immediate results—the bids need to be reviewed. So, stop stressing yourself when you don’t receive immediate feedback.
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