Sealed Bids

If the property is in high demand and/or it is a sellers market then offers may be asked to be made through "sealed bids". This is where prospective purchasers all put their bids in without knowing the bids of other interested parties bidding for the property.

Making a bid here is risky - you will want to put in a competitive bid but should be wary of bidding an excessively high price as you could pay over the odds for the property.

"Gazumping"

Only in Scotland is the acceptance of an offer legally binding, whereby in the rest of the UK, buyers whose offer has been accepted may face the huge disappointment of being 'gazumped' by a bidder who offers a higher price to the seller.

Unfortunately, there is no legal obligation for a homeowner to sell you their property until the contracts have been formally signed and sealed. Consequently, as a potential buyer you should be aware that being gazumped can be an expensive business, especially if you have shelled out for surveys, searches and other associated costs.

However, certain agreements can be made where the seller does not accept anyone else's offer during a specified period and some companies even offer gazumping insurance policies.