Does the increased success of auction bring about the end of sealed bids, or ‘best-and-final offers’, as they are sometimes known?

Sealed bids usually come into play where there is significant interest in a particular property, and so potential buyers are invited to submit their offer to an estate agent before a pre-agreed deadline, without knowing the size of any other offers being put forward.

Does sealed bids do an unintentional disservice to the seller by failing to achieve what could be raised in the competitive environment of an auction room?

Random single offers in envelopes are rarely likely to reach the heights of figures obtained in an open and transparent bidding process, where an auctioneer can ensure that the best price for the property can be achieved. Not only that, unless you’re buying in Scotland, sealed bids are not legally binding and either party can pull out of the deal at any time.

By contrast, when the hammer falls in an auction room, it represents a binding exchange of contract between the two parties. So, if you’re a seller thinking about using the ‘best-and-final offers’ option with an estate agent, should they also consider auction?

There has been a sharp increase in the average price of our sales, which have jumped by more than a third (34%)  This reflects the fact that auctions are appealing to a bigger section of the buying public – not only those who want to invest and trade, but also those who want to buy properties to live in. In other words, not just buy-to-let, but also buy-to-live.

It looks like the English property market is starting to catch up with the Australian one, where the majority of properties are sold by auction. But before that happens, it seems clear that canny vendors will wish for their properties to be sold by auction instead of best-and-final offers.

These comments come after the release of the latest Auction House UK figures, which indicate the group raised its highest September total ever (£85,586,151), as well as recording its best year ever for the total raised during Q1-Q3 (£449,733,079) – which itself was more than £120m above its previous best total in 2018.

Winter is on the way folks last chance to sell this year ….. next auction 9th of December.

If you would like a FREE auction appraisal, please contact the team. Suitable auction lots include residential or commercial properties (tenanted or vacant), development opportunities or land.

Tel: 01228 510552
Web: Auction House Cumbria