Informal Tender

[Tarw Coch]

Looking at some land for sale by informal tender, what exactly does that mean, what’s the difference between formal and informal tender?
They seem to want quite a bit of information for what they are calling an informal tender

 

[Ffermer Bach]

I thought it meant, open date possibly? And not having to go with the highest bidder

 

[Bald Rick]

Looking at some land for sale by informal tender, what exactly does that mean, what’s the difference between formal and informal tender?
They seem to want quite a bit of information for what they are calling an informal tender

Formal tender means that you have to cough up if you are successful pdq. Its a binding contracts
Informal = grace period where either party may withdraw

 

[Tarw Coch]

I thought it meant, open date possibly? And not having to go with the highest bidder

There’s a fixed date by when offers are to be submitted by , there’s also something in the blurb that they don’t have to accept the highest bid or indeed any bid.
Bids have to be for a precise amount and can’t be on the basis of exceeding any other bid………….but it seems they reserve the right to negotiate from there on so even if you submit the highest bid they seem to have the right to sell it someone else or gazump you

 

[Wombat]

There’s a fixed date by when offers are to be submitted by , there’s also something in the blurb that they don’t have to accept the highest bid or indeed any bid.
Bids have to be for a precise amount and can’t be on the basis of exceeding any other bid………….but it seems they reserve the right to negotiate from there on so even if you submit the highest bid they seem to have the right to sell it someone else or gazump you

Seems fairly standard terms

 

[steveR]

There’s a fixed date by when offers are to be submitted by , there’s also something in the blurb that they don’t have to accept the highest bid or indeed any bid.
Bids have to be for a precise amount and can’t be on the basis of exceeding any other bid………….but it seems they reserve the right to negotiate from there on so even if you submit the highest bid they seem to have the right to sell it someone else or gazump you

It was described to me once, "the Seller having his cake, selecting slice size, and eating it"... An Agents dream??

 

[Tarw Coch]

Formal tender means that you have to cough up if you are successful pdq. Its a binding contracts
Informal = grace period where either party may withdraw

I like the sound of formal, quite a bit of experience of giving offers and getting nowhere.
Last lot I offered on, written offer by deadline, several thousand an acre over guide price which they sat on, I chased it up several times and they hadn’t made a decision, after a couple of months they stopped advertising it so I guessed they’d sold it but never informed me, I thought that was rather unprofessional.
Another lot was more like a long drawn out auction spoke to the auctioneer and ga e him an offer, he came back a few days later and said he’d got a better offer. I’d ring back a few days later and give a better offfer, went on for weeks, I was pretty sure there was no one else bidding and told him so. They eventually sold it about 12 months later without coming back to me……….then rang me up to see if I wanted to rent it
Bought some land in a similar manner a few years ago but to be fair that auctioneer was very straight to deal with although the solicitor informed me I could pull out right up to the point tog completion even after I’d deposited the full money with them.
Easiest I’ve ever bought was at auction, 10% deposit on the day with completion in 28 days, simple even though there were 7 other bidders and it went way over guide

 

[Tarw Coch]

It was described to me once, "the Seller having his cake, selecting slice size, and eating it"... An Agents dream??

Somewhere in line with my experiences , only when you play the game do you find out how big a twit the selling agent is……….and I only wrote twit because I knew it wouldn’t let me write what I wanted to

One things for sure, slowly I’m compiling a list of agents I wouldn’t want to use or recomend

 

[egbert]

It can mean anything the agent wants it to mean.
I don't know if there's a technical/legal definition of 'formal' tender, but would take that to mean you bid your max bid, by a set time.
Even then the agent and vendor are still then perfectly free (if you look at their smallprint) to come back to any bidder they choose and either accept, or try to winkle another bump.

I've bought successfully by 'informal' twice.
Once being in competition with a neighbour, as the agent gently played us one against the other (not realising my pal and I were speaking every night to discuss who was going furthest)
Other time, i was the only one in the slot, (property having been on the market for months and months), and I was able to do a bit of respectful bartering via the agent, on the asking price.
Both pretty civilised, open enough, and fair. I was prepared to pay more than anyone else, and the exact sum was found through discourse between parties.

A third time, i failed, as the agent -a fly little scrotum- monkied me (and likely others) around.
He juggled communications ('forgetting' to email everyone etc), and suddenly introduced a surprise 'final bid'....not informing all bidders!
Wouldn't give me the least indication whether I was hot or cold....meaning I had to decide whether he was yanking my chain.
Correctly deducing he was a scheming little w4nk3r I stuck to my guns around his asking price....and was apparently just outbid by a chap who turned out to be very close to the agent
(so close I'd be surprised it was allowed if exposed)
I was deffo ready to go another £100k, likely more, but couldn't get the git to talk sense.
The seller certainly lost out, and I won't easily deal with that firm again until he's moved on.

 

[teslacoils]

Informal tender also a good way to get a market valuation for divying it up internally.

 

[steveR]

I like the sound of formal, quite a bit of experience of giving offers and getting nowhere.
Last lot I offered on, written offer by deadline, several thousand an acre over guide price which they sat on, I chased it up several times and they hadn’t made a decision, after a couple of months they stopped advertising it so I guessed they’d sold it but never informed me, I thought that was rather unprofessional.
Another lot was more like a long drawn out auction spoke to the auctioneer and ga e him an offer, he came back a few days later and said he’d got a better offer. I’d ring back a few days later and give a better offfer, went on for weeks, I was pretty sure there was no one else bidding and told him so. They eventually sold it about 12 months later without coming back to me……….then rang me up to see if I wanted to rent it
Bought some land in a similar manner a few years ago but to be fair that auctioneer was very straight to deal with although the solicitor informed me I could pull out right up to the point tog completion even after I’d deposited the full money with them.
Easiest I’ve ever bought was at auction, 10% deposit on the day with completion in 28 days, simple even though there were 7 other bidders and it went way over guide

I am surprised more is not sold at auction still.

As for House sales and what is called "modern auction method", that just confuses me! Possibly that is the aim.

 

[Chae1]

Think there will be a few impending sales rushed through with the threat of 45% CGT at autumn budget.

 

[steveR]

Think there will be a few impending sales rushed through with the threat of 45% CGT at autumn budget.

And a few cancelled....?

 

[Chae1]

And a few cancelled....?

If not completed before the budget.

Might not even change

 

[Martyn]

I put in for a informal tender few years back, then after they went through the tender they asked for final best offers, then the agents rang around asking for extra £50k offers and who was the last person standing purchased it, went up considerably between breakfast/lunch/evening time

 

[egbert]

I put in for a informal tender few years back, then after they went through the tender they asked for final best offers, then the agents rang around asking for extra £50k offers and who was the last person standing purchased it, went up considerably between breakfast/lunch/evening time

and thereby found the highest bidder, without the pressure and risk of an auction.
I'm OK with it if it's handled straight.

 

[Tarw Coch]

I put in for a informal tender few years back, then after they went through the tender they asked for final best offers, then the agents rang around asking for extra £50k offers and who was the last person standing purchased it, went up considerably between breakfast/lunch/evening time

Yes, I’ve had that, after submitting my offer by the deadline, was then told it was best and final offers by a later date.
So I asked if my offer was in the right ball park only to be told they weren’t prepared to discuss that. That’s a bit of a head scratcher, could already be the best offer. Upped my offer but still didn’t get it. Would probably have been better from my perspective if it had gone to auction, it’s more transparent, sure the auctioneer could be taking bids off the wall but push that to far and they can be left with it on their hands which is why I suppose they prefer doing it this way, they’re less likely to get found out.

 

[Martyn]

Carter Jonas have done it several time around here, much prefer an auction.

 

[chaffcutter]

We have sold several parcels by informal tender including two development sites over the years, one of which generated over 20 offers. This let us choose our preferred developer and price, whereas if you go to auction you have no control over the buyer (who might end up as your neighbour for example).

 

[Tarw Coch]

I am surprised more is not sold at auction still.

As for House sales and what is called "modern auction method", that just confuses me! Possibly that is the aim.

What’s confusing about house auctions? I bought a bungalow at auction a few years back, much the same as buying anything else at an auction, keep nodding, winking or rising you hand until it’s too dear or gets knocked down to you