Sealed envelope real estate bidding process
I am about to engage in a “sealed envelope” bidding process on a home we want to buy. Does anyone have experience with this? The broker says that the seller will pick the best offer and there will likely be no further negotiating/counter-offers. Not sure if I should believe this. However if it is really…
I am about to engage in a “sealed envelope” bidding process on a home we want to buy. Does anyone have experience with this? The broker says that the seller will pick the best offer and there will likely be no further negotiating/counter-offers. Not sure if I should believe this. However if it is really a one shot, I might consider raising the offer (which is surely the effect they want). If you have insights, please share.
It’s really important to know the terms the broker is working under. I won a “sealed envelope” bidding situation. I was shocked because I had been outbid on so many other properties before hand. The biggest difference for me was that I didn’t try to play negotiating games. I bid what I could afford and what I thought the property was worth to me. Turns out, I was lucky in that mine was the best and highest offer. I close in a few weeks. Listen to your gut, consult with your mortgage broker, and leap forward with your eyes wide open. Good luck.
Keep in mind that there is more to an offer than just the price. Be sure to detail your financial ability to close on the transaction and include a pre-qualification letter from a well known lender if you can. If you are willing to waive the mortgage contingency then point that out, if you are flexible on the closing date, will waive any engineer’s inspection, etc. these can all make your offer better than others that may even be at a higher price.
I would leave out the sappy stories, they mean nothing to most sellers. What they care about is finding the buyer willing to pay the most money on their (seller’s) terms and who has the greatest probability of following through on the deal with the least number of headaches.
Huh? Was that you I accidently hit with my snowball last night, ThirtyThreeSixty? Sorry. I’ll buy you a drink at Grand 275 to make up for it. Smile.
We lost a house this way too. I felt a little wary of the broker and as a result lost a house we really liked… outbid by under a $1000. Having a “story” or even the fact that we were the first people to put an offer in meant nothing. It was really upsetting. However, glad we have the house we’re in now, so it all works out in the end! Offer what you can if you really want it.
I’ve bought and sold under this process…selling using this process is awesome…buying using this process sucks…!!!
Typically, “best and final” does mean “final” BUT this is NYC so is there a possible scenario where one person “loses” the bid so rebids again after they know they’ve lost and becomes the winning bid…evil – yes…within the mandate of working for the best interest of the seller – probable…
With a “best and final” you have to go in with your best bid and be happy to win (though you will have buyers remorse) or lose … if you want the house don’t try and get cute with the bid – you’ll get buried by someone who does…
But, do wait to decide until putnam-denizen weighs in…
I was involved in a highest and best buying a house (aguayo and Huebner) and selling an apartment (with Brooklyn Properties). With each there was no negotiating, counter offers, etc. we took the highest offer on the apartment and our highest bid on the house was accepted.
I’ve done it twice and both times were final offers, “as is” sales. So there was no going up or down later. I lost out on both (and still really regret one)
This is how we ended up selling our home. The house had huge interest and we ended up getting 5 offers, we felt that the most fair process was to have sealed bid process, which basically cuts out all of the ridiculous back and forth countering. You offer what you want to pay, and if it works for the seller- they accept. I would say keep your blinders on and forget about the other parties submitting sealed bids. Offer what you feel the home is really worth to you. A letter describing a bit about yourself also is a nice touch—it might make the sellers see something special about you. Good Luck.