In this very buoyant and rising property market, the amount of ready, willing and able buyers outstrips ‘available’ property. It is not uncommon for a property to hit the Internet and the agent already has a long list of buyers ‘in the wings’ and to buy.
As a seller, it is the perfect situation – certainly a far cry from the previous years of 2008-2011, however this can cause a real headache for buyers. Purchasers used to have lots of choice and have time to decide on which property they wanted, however things are now often ‘snapped up’ within the first 24 hours – it is also a real struggle to find that perfect property.
Contrary to popular belief, most estate agents dislike ‘Dutch auctions’; this is where buyers are fighting over property and upping bids by £500 each time, until eventually a buyer secures the property. Overall this whole process is unpredictable, messy and an unpleasant experience for all involved, often leading to the sale falling through when a buyer changes their mind after the ‘buzz’ of winning the battle.
From an estate agents perspective, the fairest solution to the issue is to set a ‘best and final’ date and time for all bids to be submitted. Previous stigmas had to painted this method in a negative light, however with local property auctions ever more prominent, sealed bids are now common place.
There are also benefits for both parties; sellers can ensure they achieve the best price for their home, whilst being able to choose the best buyer to suit their situation. Sellers will also usually ‘stand firm’ once they have agreed on a buyer – not accepting any further bids.
The positive for the buyer is that they are not rushed into making a ‘snap decision’ they might regret, whilst being given the opportunity to make a bid they feel the property is worth, and importantly they can afford.