Mike Mitchell wrote in message . ..

But inflated prices in an open bid process can only happen if the item
in question is rare. This is not the case for properties as it might
well be, say, for works of art. The fact that open bid auctions happen

Or where two or more people want the property and are prepared to bid
over the asking price. Why do you think people are less likely to take
the bidding over the asking price in the open auction system?

by the dozen or hundred every week points to the equity of this
system. Why would open bids for property (in Scotland or anywhere

I would say the number of successful closed bids in the Scottish
system point to the equity of that system.

else) not be just as beneficial to all parties, vendors and buyers?
Isn't a very low OO price just trickery? Why aren't new properties
sold like this?

But in a sealed bid system, buyers will offer well over the price

BUT PEOPLE DO NOT GENERALLY DO THIS (99% of the time). I do not know
who has told you this but no-one I know works this way

Then they don't get the property! One person is lucky enough to pip

**** happens, Learn to deal with it!

them to the post, possibly by a very small amount. However, because of
lack of information (since it's a closed bid system and thus based on
guesswork) the buyer who lost out could be kicking himself because he
failed by such a small margin. So what happens? Well, to make sure of
getting the property, an inflated bid is put in, if that is what one

If the property is rare then yes, put in an inflated bid, just as you
have said can happen in the open system. If properties are plentiful
then you know there's another one around the corner, up your bid by a
few hundred and eventually you will be successful. The net result is
the same in both systems. Where do you think these hordes of bidders
making vastly inflated bids are coming from? Nowhere, because they're
a figment of your imagination and some journalists spin. Supply and
demand will determine the selling price of property. Why can you not
see that?

If someone can afford to outbid you they will do so, regardless of the
systrem.

The only substantive financial difference I can see is that you end up
paying for more abortive surveys in the Scottish system. That's a
totally different issue from whether a closed or open auction is
fairer. But consider this: In an open system you're actually *more*
likely to end up paying more since you will always want to bid more
(up to a limit) than the other bidders to secure the property. That
little bit extra (usually at least 1K pounds, often more) would pay
for quite a few surveys on properties where everyone gets one chance
to make their best and final offer.

MBQ