What exactly is "open-bidding"?
Can anyone explain what it means that a real estate firm has an “open-bidding process”? For ex., I read somewhere on this site that Warren Lewis practices open-bidding and that buyers don’t like it. What exactly does it entail? Thanks.
Can anyone explain what it means that a real estate firm has an “open-bidding process”? For ex., I read somewhere on this site that Warren Lewis practices open-bidding and that buyers don’t like it. What exactly does it entail? Thanks.
“satisfied with their honesty”
please do tell zeebee….how were you satisfied with their honesty?
We had open bidding (as buyers) on a property with WL and were satisfied with their honesty and the process. As buyers, we liked it – we knew exactly what we were up against and how to structure our offer to be more attractive than a competitor’s.
It is the opposite to the scenario where a broker receives written bids and accepts the best.
Like a verbal ebay without a time deadline. Everyone gets a chance to come back and top the other person.
Basically, WL will just flat out tell you “i have one offer with 40% down at $1.8 and one offer 20% down at $1.9, all pre-approved”. You come back and say OK, i’m at $1.95 with 35% down. They call everyone else and tell them to see if they would like to beat your offer if they wish. When everyone hits their limit someone wins.
The only problem is, from what I have seen you never actually see written bids, you have to take their word for it. If they will indeed play the game with real written offers, I don’t have a problem with it, but the verbal game is just that.
People bid stuff up and then change their mind, and you never know where the price would have shaken out if they had just made a deadline accepting offers and accepted the highest. *Or had real written offers*. Needless to say, it can be a quite a game for a buyer.
How does this work except in the circumstance of an auction like bid process, like where there multiple indications of intent to bid agter an open house.
If I go see that house on Park Place that has been around for a while and make an offer that expires in 4 days, I don’t really think there will be time to round up other bidders — if people were interested, they would be making bids too.
Does it work to the advantage of the seller, the buyer, or both (e.g., in inducing confidence to make a deal at all)? I think I like it.
What a weird thing. Why would anyone trust them about other offers? I certainly would not.
Once you place a bid, they tell you all other bids on a property and some details (like 1m, 30% down, full price cash, etc.)
Kind of strange, imo.