Arnold
CibbuanoSale by Private Bid
August 14th 2006 00:35
A sale by private bid is similar to all the methods of sale considered thus far. The process starts like a sale by negotiation. The property is advertised on the market with a guiding price range. Buyers inspect the property and consider the price range the seller is advertising for. If they buyer is interested in purchasing the property they are required to submit a private bid registration form and lodge it with the real estate agent. The buyer lists an offer for the property with their registration. There is a posted cut off date and time when the private bid registrations of interests must be lodged by. After the private bid cut off time has been passed, interested buyers are contacted by the estate agent to be informed that their offer is being considered by the seller.
The real estate agent will confirm the bid posted by the buyer and will be invited to increase their offer. The real estate agent compiles all the relevant bids and best offers are confirmed and presented to the seller for consideration.
A sale by private bid is an innovative way of selling a property with several advantages.
1) The sale by private bid can be more effective than a public auction or private treaty as interested buyers are fished out from the outset with the use of the registration process. Marketing can then be concentrated on target candidates rather than wasting resources on generalized advertising.
2) It puts a finite deadline on the bidding process. This tends to stop buyers/bidders from haggling and stalling on a decision. It may also encourage bidders to offer their highest bidding limit in order to out bid other private bids. It is a good method to extract what a bidder will consider to be a true or fair value for the property.
3) The private bidding process creates the atmosphere of a competitive bidding environment but it removes the public aspect of the bidding process.
4) It is easy to assess the amount of interest that has been generated in your property. This can help you assess the true value and return on your property. It is possible to see how much public interest there is and the process weeds out the genuinely interested parties very early in the process.
5) Anyone who has a viable interest in the property is able to lodge an interest. In a public auction an auctioneer will award a bit to the first bid that he sees.
6) A private auction may be more attractive to a buyer than a public auction as the stress and intimidation of a public auction is not present and bids are made in confidence. This may encourage more people to engage in the bidding process.
The real estate agent will confirm the bid posted by the buyer and will be invited to increase their offer. The real estate agent compiles all the relevant bids and best offers are confirmed and presented to the seller for consideration.
A sale by private bid is an innovative way of selling a property with several advantages.
1) The sale by private bid can be more effective than a public auction or private treaty as interested buyers are fished out from the outset with the use of the registration process. Marketing can then be concentrated on target candidates rather than wasting resources on generalized advertising.
2) It puts a finite deadline on the bidding process. This tends to stop buyers/bidders from haggling and stalling on a decision. It may also encourage bidders to offer their highest bidding limit in order to out bid other private bids. It is a good method to extract what a bidder will consider to be a true or fair value for the property.
3) The private bidding process creates the atmosphere of a competitive bidding environment but it removes the public aspect of the bidding process.
4) It is easy to assess the amount of interest that has been generated in your property. This can help you assess the true value and return on your property. It is possible to see how much public interest there is and the process weeds out the genuinely interested parties very early in the process.
5) Anyone who has a viable interest in the property is able to lodge an interest. In a public auction an auctioneer will award a bit to the first bid that he sees.
6) A private auction may be more attractive to a buyer than a public auction as the stress and intimidation of a public auction is not present and bids are made in confidence. This may encourage more people to engage in the bidding process.
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