Another extortionate way to profiteering.

Bonefish Blues

Banging donk
Location
52 Festive Road
I have no experience of sealed bids but I do have experience of getting some way down the line and and seller pulling out with a better offer (ie being gazumped). At the time someone (solicitor, estate agent I forget) told me about sealed bids as if they were some kind of enlightened thing done by those much more civilised people north of the border, rather than a means to rapacious profiteering.
The Scottish system is binding once an offer is accepted - that would be a big step forward IMHO.
 

BoldonLad

Veteran
Location
South Tyneside
They are. They are also binding on both parties once accepted, so there's no gazumping.
At 73, I doubt I will be buying or selling a property again, in my lifetime. My experience of buying and selling is that it is extremely stressful, what with gazumping, the possibility of buyer (or seller) backing out at last minute etc. IMHO, legally binding sealed bids would be a winner.
 

Pale Rider

Legendary Member
Sealed bids were involved in my gaffe 20 years ago. so they weren't new then.

I'm no expert, but I thought it slightly ridiculous at the time because I associated sealed bids with an uber-desirable duplex apartment in Belgravia, not a ruddy terrace in Sunderland.

Still, never under-estimate the greed of the property selling public.

It is worth bearing mind estate agents are legally obliged to pass on an offer.

My first offer was rejected out of hand by the estate agent, so, cynical git that I am, I popped round to make it directly to the vendor.

I think the sealed bids must have been a damp squib from the vendors' point of view.

I'd eventually offered the asking price, then they asked for sealed bids, I told them that wasn't for me but left my offer on the table.

After a week they accepted it.
 

Fnaar

Smutmaster General
Location
Thumberland
I count myself lucky then ... bought my house just over 2 yrs ago ... went to see it, liked it, offered 6 grand under the asking price, offer accepted, survey done, house bought :smile: Totally refurbished 3-bed Victorian house in a great location :smile:
 

AuroraSaab

Über Member
The bidding process wouldn't be a concern to me, the fact that the seller can change his mind at any time would be though.
I agree, but the system needs an overhaul to protect both sellers and buyers. On two occasions we have sold houses at a slightly lower price than we would have likely accepted, on the basis that the buyers were ready to go, not in a chain, it would go through quickly etc. Both times it turned out they were not in this position and it took months to go through, by which time we had had surveys done and committed to other properties.
 

Pale Rider

Legendary Member
I count myself lucky then ... bought my house just over 2 yrs ago ... went to see it, liked it, offered 6 grand under the asking price, offer accepted, survey done, house bought :smile: Totally refurbished 3-bed Victorian house in a great location :smile:
We are fortunate in the North East in that the property market is relatively static, which limits the motivation and opportunity for stroke pulling.

Perceived values swing significantly, particularly in London and the South East, which leads to a situation where an offer is accepted but before contracts are exchanged the seller reckons the value of his house has gone up ten grand.
 

mustang1

Guru
Location
London, UK
How comes Estate Agents get a percentage of the selling price. If a house costs £200k vs £300k, it's not like the agent has done any more work in selling the dearer house. It's not sellers who want the higher price, it's the whole system. Seller gets higher price, agent gets higher commission, various house-selling fees are higher. Everyone wins except the buyer (unless they're downsizing).

Those agent fees based on percentage really irks me though.
 

AuroraSaab

Über Member
Perceived values swing significantly, particularly in London and the South East, which leads to a situation where an offer is accepted but before contracts are exchanged the seller reckons the value of his house has gone up ten grand.
This happened last month to a friend. He had to find a house quickly due to job relocation. Offered full asking price on a house that had just come on the market, which was accepted. A week later and the seller wants another ten grand (about 5%) because he now reckons the EA has under valued it because it sold too quickly. My friend withdrew his offer and after a while the seller accepted the original one again. A buoyant house market leads to all sorts of shenanigans, from sellers and buyers alike.
 

bikingdad90

Veteran
When we upsized we made the EA work for his commission as we bought and sold with same EA. It was in their interest to get both sales over the line as we bucked the trend and actually put an offer in on a house we liked before we had sold ours. It worked as we sold the house within 30 days and for a good profit which we ploughed into the new house as equity getting the house we loved.
Me and my wife are in a very fortunate position to be able to overpay the mortgage while rates are low and we should be in a position to knock a good few years off it and retire around 60 instead of 65.
 

Archie_tect

De Skieven Architek... aka Penfold + Horace
Location
Northumberland
I feel sad for younger folks trying to buy, it's almost impossible and many seem destined to never owning their own home.
When build costs catch up with house prices [and values drop fall when people start to move around again after the Covid panic buying ends] then prices will stabilise... I've seen the cycle repeat a few times over the last 40 years but build costs are increasing again... though a couple of houses on our estate have been bought up by developers , extended to the limit and then put back on sale again after a few months at stupid prices and they haven't budged.

I feel sorry for first time buyers and young families as the jobbing builders and baby boomers are buying to do up, and sell on or to let, pushing houses beyond their reach.

If I see another programme where a perfectly sound unextended house is gutted, rendereed, fitted dark grey windows, and a big square flat-roofed open plan kitchen/ family room added with a stupid island and lantern over, to the width of the house opening onto a level access deck in the garden I may well smash the TV. STOP!!!

Kirsty Whats'erface and that Irish woman have a lot to answer for, driving up peoples' expectations, costs and pushing decent smaller family houses beyond the young.
 
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bruce1530

Veteran
Location
Ayrshire
Maybe not so cheeky, my sister lives in the States WFH but came home to Scotland during lockdown for a couple of months. If you can work from home, you can work from anywhere.
Employers are cracking down on this (well, mine is!)

At the start of lockdown we had a couple of people with second homes in France. Indeed, we had one guy who was trapped in France for several months, and when lockdown was eased, he wanted to stay!
They realised that when "working from home", they could do it just as well from France. From their perspective - and from the rest of the team - it was fine.

But Payroll disagreed. Broadly speaking, if the people were based overseas for more than half of the year, they would be taxed under the foreign tax rules. Which meant that the employer would have to jump through hoops and register with that country's equivalent of PAYE.

So there's now a "must be resident in UK for tax purposes" clause.
 

Eric Olthwaite

Insert witty self-deprecating description here
Employers are cracking down on this (well, mine is!)

At the start of lockdown we had a couple of people with second homes in France. Indeed, we had one guy who was trapped in France for several months, and when lockdown was eased, he wanted to stay!
They realised that when "working from home", they could do it just as well from France. From their perspective - and from the rest of the team - it was fine.

But Payroll disagreed. Broadly speaking, if the people were based overseas for more than half of the year, they would be taxed under the foreign tax rules. Which meant that the employer would have to jump through hoops and register with that country's equivalent of PAYE.

So there's now a "must be resident in UK for tax purposes" clause.
Of course, one solution to that problem is not to advertise your location to your employer.
 
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