Bidding in a competitive scenario
A competitive bidding situation can be a sink or swim scenario. Putting forward the most favourable and attractive ‘offer’ is not solely based on finances. Other factors can enhance an offer and sometimes have more appeal to the vendor.
The service: A client came to Garrington having found their ideal coastal holiday home. Having been previously outbid, they were rather disheartened and so sought professional representation in order not to miss out again
The five bedroom, three bathroom regency era property was located on the sea front and presented quite a unique holiday home opportunity for this London based client. Very few properties of its type in this location come up for sale.
Arranged across two dwellings, the main house was a sub-divided self-contained flats and it was planned to undertake a significant project to reinstate the property back to the original arrangement of one superior dwelling.
The Consultant quickly ascertained that a crucial element of this negotiation would be to consider the ‘finished’ end value of the property based on comparable research and to formulate an opinion of its current market value combined with the best possible attractive terms strengthen the offer.
The negotiation: With a guide price of £1.75m and several interested parties considering the property the agent sought best and final offers. The Consultant advised the client that it would be in their best interests to instruct both a solicitor and surveyor to research the legal and structural aspects of the property in order to add weight to the offer.
After thorough analysis of the market using comparable evidence, consideration of the redevelopment costs against the scope of work required the client and Consultant agreed to offer a robust £1.95m. The sealed bid was submitted with detailed supporting documentation reinforcing the client’s position as a committed and secure buyer. This in-depth and structured approach produced a successful outcome and the bid was accepted.
Value delivered: Putting forward a bid in a best and final scenario of this kind weighs heavily on the Consultant being able to construct a watertight offer. There is only one chance to get it right! This relies on accurate comparables, staying close to the vendor’s representatives and in- depth local knowledge of market conditions, which can often dictate the ‘atmosphere’ of the negotiation.