Sealed Bid
- Where a property attracts many interested buyers an estate agent might conduct a sealed bid.
- Each prospective buyer independently states their highest offer.
- Bids are placed in a sealed envelope and submitted to the agent.
- When the deadline for opening the bids expires all opened.
- Following "the opening" the highest bid normally wins.
- I would always try and make it a condition of tendering that I am permitted to be present at 'The Opening' of sealed bids to ensure that there are no shenanigans favouring one investor over another. A refusal would indicate something underhand.
Published: 11 November 2013
Last Updated: 17 November 2021