Most homes in Bracknell are sold by way of ‘private treaty’. A private treaty sale usually takes place after the property has been marketed by the seller, usually with the help and specialist advice of a suitable local estate agent such as Duncan Yeardley.
Sometimes, where a property is unusual or likely to be in particular demand it may be deemed sensible to sell the property at competitive public auction. In this case, all interested parties will make all enquiries prior to the day of the auction and then bid on the property on the day of the auction. Once the gavel drops to a buyer they are contractually obliged to buy and in most cases they will sign the contract and pay a deposit of 10% of the purchase price there and then! Of course, most homebuyers are not able to buy at auction given the need for so much pre contract investigation. This work can be costly and time consuming.
Therefore, sellers might sometimes be advised by us to sell a property that is likely to be in significant demand by way of private treaty but using an informal tender arrangement whereby ‘sealed bids’ are submitted to the seller’s agent on or before a specific time and date. The bids may still be invited subject to contract (in other words, they are not contractually binding) but the reason for inviting sealed bids is to encourage all interested parties to make their best offers at the same time. This allows the seller and their agent to consider all serious interest at once and therefore make an informed decision.
Whilst sealed bids may or may not be legally binding, encouraging best offers by sealed bid does bring forward all offers together and it could be argued that encouraging best offers at the same time will make subsequent ‘gazumping’ less likely.