Edit: Oops, will post this in the "Ask a Badger" thread.

x

In my personal experience, it's a sealed, final bid from each of the parties.  I think it's specifically to prevent bidding wars, because the winning bidder gets assurance that they won't get gazumped a week down the line.

x

g.man wrote:

Unlikely wrote:

If it's going to a closing date it suggests that they've had at least two "notes of interest", i.e. people who have indicated an intention (but not a commitment, mind) to make an offer.  Bidding is sealed - you basically have to go in with what you hope is the highest offer and then the sellers pick which offer to accept.  In almost all cases it'll be the highest bid, obviously.

Jesus. That’s terrifying! So do you not get to make multiple bids then?

Nope, one chance.

I really want this flat, so I guess I have to have a long night of the soul checking my financial calculations, and get some advice from my solicitor...and then if I'm really serious, I'm going to have to go large with my bid?

I understand the logic behind it but for the buyer that's a pretty fucked up way of buying anything.

That's good, cos we are going on sale this time next week.

Sorry for the insensitivity there!
x

Absolutely Davy. It's all good advice.
My circumstances are probably unusual though.
First time buyer in mid 50s. Huge cash deposit, and (hopefully) tiny 10 year mortgage to make up the shortfall, and the final kicker of course is that I'm self employed.

You probably already know, but be aware that interest rates are highly likely to be going up again soon.  If your mortgage agreement is a variable rate one, it could be a little shock.

I've paid fixed the whole time.  I've probably overpaid for 10 years because of it, but at least I knew what the payment was each month, and it would never change.

x

g.man wrote:

I’m just a total noob at all this, so if any of you kind badgers can elaborate on the process it would be super helpful. thanks G.

I think everyone’s answered your questions, but just in case it helps …

Yes, the Scots system feels nuts as a buyer. It’s really stressful because it’s a closed auction process.

It is a bidding war, but you only get to make the one bid. That’s it.

You do it by telling your solicitor how much to offer. They write a letter making the official bid - this is your offer in principle that we talked about earlier. So the letter says something like “My client Mr G will pay £££££ to buy the flat on XX date on the condition that he gets his mortgage, and he’s happy with the surveys, etc.”

That letter can also stress how brilliant your position is, as a buyer. No chain, big deposit, mortgage all set to roll.

The only thing you will hear back after the closing date is whether or not you won. No other details. Your solicitor will phone and let you know.

If you win, than after that you and your solicitor can start digging into the detail of the deeds, requesting clarification on anything you find in there, asking to see safety certs for the gas, and all that sort of gubbins. Some people use this point to ask for things like bits of furniture to be included in the sale, and so on. That’s part and parcel of the negotiation between solicitors that should eventually lead to ‘concluding the missives’ which is basically the moment you sign a contract.

Don’t panic when it feels like that takes forever. Property solicitors love to leave it all until the very last minute. Often the day of handover.

There is another way to do things. If you see a place you love, you can call the estate agent and make them a verbal offer. Say that you’ll pay £x for them to take it off the market right now. It usually won’t shortcut the process, but it can. Usually, because it’s very much a seller’s market, all it will do is push the seller to set a closing date - because they’ll still want to have that bidding war. But in other places, outside the bubble, making an informal offer can work - the seller can just say “fuck it, yeah.”

Super helpful stuff guys. Thank you very much. It’s all such a minefield when you haven’t done it before.

Being the end of a chain - in other words being a first time buyer (or just someone with the total price in cash) - does make you more attractive and it can swing things - perhaps even in a blind auction if it's close.

This is all great to know. Thank you.

...and I'm having root canal treatment mid afternoon.

Good luck mate, everything crossed for you