Vendors choosing buyers though 'secret auctions'
Estate Agents - 01/11/2006 15:04:59
Estate agents have reported a huge increase in the number of "secret auctions" being held to let potential buyers "fight it out" and therefore increase their offers.
The booming housing market means that often a number of people will offer full asking price for a property. These "sealed bid" auctions are then held by vendors, who give all interested parties a deadline to make an offer in writing and then choose the best.
According to several estate agents, the number of homes sold after sealed bids has increased by 25 per cent since January and up to one in four sales is now being decided by this method.
Mayfair agent Peter Wetherell said: "Sealed bids are happening more frequently and we have seen around a 25 per cent increase over the past year. We had one last week and we've got one tomorrow.
"Sealed bids are as good or bad as the integrity of the agent handling them. They can be the fairest or the most unfair way of selling. At worst, they can be misused by agents."
In the UK today buyers hugely outnumber sellers and every home for sale is being viewed an average of 14 times.
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