Sealed bids pain. Does it get easier?

[cantthinkofaname]

Not sure if this belongs here or in the Family Lounge.

My partner and I are pretty cut up about losing a property to sealed bids in ED. We were in a good position, and even talked up how our little one was looking forward to running around the garden. But we lost out to another family by only a few hundred pounds, and I'm gutted beyond belief. I know it's part and parcel of property hunting in London, but it stings more than I ever could imagine.

Does the feeling go away? Will we find anything else - who knows? It feels as though nothing will ever live up to this place (and there is a crazy lack of stock).

please tell me your stories - good or bad!

[red devil]

I once won a sealed bid, and then 10 mins later learnt I'd been gazumped. Which sort of defeated the purpose of a sealed bid in the first place. Still, I quite enjoyed walking into the estate agent's office the next day, planting my size 10's on the desk, whilst watching the slimy little weasel squirm as they explained that they hadn't broken the law blah de bloody blah...

[TheArtfulDogger]

There's your answer, offer the vendor more money to get the place and guzzump the winning bid by a few hundred more

J'sus it's starting from sound like the 80s all over again ... Must buy whilst the prices are going up before the bubble bursts and people get into negative equity ...

[KidKruger]

I used to get emotionally attached to property leading up to purchase execution because of course you imagine your/yours in the place in some kind of ideal homes exhibition idyll.

I reign it in a bit now, having been burnt as per above a few times.

[LondonMix]

I doubt it was down to a few hundred quid. The other bidder must have been in a better position-- all cash, no chain, larger deposit or whatever.

The homes is this area are largely a dime a dozen architecturally. Unless you were bidding on one of the more unusual houses, you'll find something else similar that you can make into whatever you liked about the house you lost.

Good luck

[Blah Blah]

But it's not as easy as just finding something else LondonM. There's an asking price and then a secret auction! This is always going to put people at a disadvantage unless they bid stupidly over the asking price. It's part of what is wrong with the market. If a home is to go to the highest bidder, then it should be in an open auction.

[DirtyBox]

I don't see the point of sealed bids...estate agents will always try to wring every last penny out of a buyer so if someone else comes along later and offers more then the winner of the bid will get asked for more or lose the house anyway. Not like it's legally binding or anything.

[LondonMix]

Something else will come along and if their bid was close this time they'll eventually win.

Blah Blah Wrote:

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> But it's not as easy as just finding something

> else LondonM. There's an asking price and then a

> secret auction! This is always going to put people

> at a disadvantage unless they bid stupidly over

> the asking price. It's part of what is wrong with

> the market. If a home is to go to the highest

> bidder, then it should be in an open auction.

[Mick Mac]

I once won a sealed bid auction (yes it was happening in ED in 2001) - of course the estate agent tells you that you didn't beat the second best bid by much - they would say that wouldn't they.

As regards house purchases - putting in a very good offer and having it accepted puts you in control. There is then a long process and opportunities to negotiate further after survey etc - the initial offer being accepted is just the beginning.

[*Bob*]

I wouldn't take the 'just missed out' thing to heart.

Telling the winning bidder they just pipped someone else to the post / telling a losing bidder they were just pipped to the post - two side of the same estate-agent-fabricated-horseshit-smeared coin.

[DovertheRoad]

I understand your pain but truth is there is always another house and quite often better than the one you were set on. The emotional pull of a new home quite often colours others rational buying behaviour but easy to understand why.

We went to sealed bids back in 2011 as buyers, great house, close to village and all the original tiled mosaics yadda yadda. Four of us all over the asking price. Ours was second best bid but we were still outbid by a whopping ?70k. Two days later we found our current place, bargain price, great street and we were the only interested party...saw it in the morning and had offer accepted by 5pm.

Point being that if you keep at it will work out in the end and often for the better.

[aileking]

When we were looking in 2013/2014(a mad period to say the least)we had 13 offers outbid (despite offering more than asking on about 6 occasions and the rest of the time offering asking price). But by house number 14 we got lucky and our offer was accepted. Now I'm really glad that we got the house that we did and don't think of the others. A bit like getting married and looking back at your ex-partners. At one time you liked them, when you lose them it hurts but you end up alright in the end......

[Mick Mac]

I have to say I don't approve of going again after the sealed bids process. Take your medicine I guess. Its supposed to be a fair fight and if you lose out, so be it.

Lots of houses do however return to the market - the mortgage process is tougher than it was and accepted offers need to be backed up pretty quickly. But you might find by that time its not the house you really wanted after all.

[cantthinkofaname]

Christ aieleking - with 14 offers, how long was that process? A few months?

I don't think sealed bids are common in ED at the moment, and we're not looking at the mega beautiful houses that you see. It was modest. The market has definitely slowed down and so thankful it's not the wild days of 2013.

Just found out that the vendors who lives abroad, wants it all done at breakneck speed and favoured the other buyer. It sounds as though he wanted to use us to get more money out of his buyer. Probably a blessing in disguise we lost this one..

[LondonMix]

Probably.

I have a friend buying in the area at the moment. Initially people treat house buying like shopping for a wedding dress. Once the market has broken you down, people starting treating it like shopping for a sensible pair of work shoes for a job that requires you to be on your feet all day.

Most of the houses around here are practically the same. Most special features you see can be recreated (including restoring original features) for less than the premium people pay for them in tact.

By the end our house search we'd boiled down our list to these essentials:

1. Within a 10-12 min walk to the station

2. Close to Lordship Lane (no more than a few minutes to the shops / gym etc)

3. Within a 10-12 min walk to Dulwich Park

4. The potential to extend / convert the loft

5. In the catchment of at least one primary school, though preferably more than one.

6. Victorian or Edwardian

I think if anyone's essentials list is longer than 5 or 6 realistic things, it will be impossible to buy.

[aileking]

We looked for 18 months, but as I said it was crazy times and I think we were pretty unlucky (or not as willing as others to over-pay). But it all worked out in the end. And the house that we ended up with and now love didn't have the "wow" factor. It doesn't need to be love at first sight.....

[Jeremy]

Nobody else wanted our house! And when I started getting stuck into all the work that needed doing... I realised why.

[Jules-and-Boo]

I would suggest take a deep breath and re-prioritise.

[Seabag]

I think we looked at, liked, hated, became despondent with about 20 places before this house. But this house was on the market, then not. Then sold, not sold. Discounted and eventually by some arse fate ended up on offer to us.

It's been a joy, heartache a love affair and a money pit.

Don't give up, keep trying and cry sometimes

[DovertheRoad]

Buying in 2013-14...that was a mad time and terrible to buy. Buy in a market when everyone else is shitting themselves and prices have dipped. Like 2010-11 for example.

[LondonMix]

Prices had already started to increase by the end of 2009 so 2010-2011 was a rising market too, just not as intense.

Its easy to say buy in 2010 but then the required deposits meant many people couldn't buy. That's why when deposit rates fell, the market went crazy. Plus people need to move when they need to move. Trying to wait for a crash when your life circumstances require more space isn't always possible.

[Mick Mac]

Save the seals.

[aileking]

DovertheRoad Wrote:

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> Buying in 2013-14...that was a mad time and

> terrible to buy. Buy in a market when everyone

> else is shitting themselves and prices have

> dipped. Like 2010-11 for example.

Always easy in hindsight. But we didn't have a decent deposit before 2013-2014, as LondonMix says some things you don't have control over. In my case I don't regret buying in 2013-2014. It was costing us ?16,000 a year in rent and where we've bought, house prices have continued to increase (identical houses now selling for ?75,000 more than we paid). So although buying in the mad times is frustrating, I personally would have lost money by waiting (which is the only option as you can't go back in time).

[cantthinkofaname]

(Yeah 2013/14 was pretty bad.One hopes that prices cannot increase much further as the stamp duty alone becomes a noose.Surely sellers with ? signs in their eyes realise this.)

Did anyone experience their first time buyer pulling out because they had waited so long for you to find somewhere? I'm hoping it won't be over a year like some of you lot!

[Pickle]

Years ago when we sold our 2 bed in SE22 (2005/6ish) it went to sealed bids, with a ridiculous number of bids received. Some of them were so wildly above asking price I don't think finance would have been granted. As it was, we went with a couple we liked, who had offered asking price. The estate agent thought we were crazy.

For us, they were buyers in a good position, nice people, and a sensible price meant it all went through smoothly with no renegotiations needed.

Not all vendors are money grabbers.