Many owners offer their property at a higher price in order to have room for negotiation. But right now no buyer is found because the price is too high. The property has been for sale for too long. Interested parties become sceptical. In the end, the property has to be sold for less than it is worth. A bidding process can be an alternative.
If you choose a lower starting price for your property, you increase demand. If there are enough interested parties who certainly want to buy the property, a professional broker can conduct a bidding process. Here the broker can help as a neutral intermediary. A bidding process strengthens the negotiating position. But it is neither an auction nor a forced sale. On the one hand, it is particularly suitable for properties where demand is extremely high or extremely low. On the other hand, it also makes sense for properties that are in great need of modernisation or renovation. But beware! There are also risks. In any case, sellers should prepare themselves well for this or leave it to a real estate expert.
There are several ways to conduct a bidding process. An "open house" viewing can be conducted. There is an inspection date at which all interested parties appear. The bidding procedure is also opened there. This saves sellers many viewing appointments. However, this procedure also has disadvantages: The seller has to do a lot of marketing in advance to find as many interested parties as possible for the viewing appointment. In addition, during a viewing with many interested parties, it is difficult for the seller to assess all of them accurately. Occasionally, bargain hunters appear at such appointments who do not make a serious offer. Experienced estate agents, however, can assess interested parties very well.
Professional estate agents recommend individual viewings with the option of a bidding process. Here, everything initially proceeds like a normal house sale. Individual viewings make it easier to filter out interested parties who are suitable for a bidding process. However, the following must be pointed out in the advertisements: 1. that a bidding procedure can be carried out depending on demand. 2. that the highest bid with secured financing will be accepted. 3. that the selling price may deviate upwards from the bid price.
After the broker has filtered out the suitable interested parties, he informs them about the bidding procedure and gives them the opportunity to submit their offer in writing by a fixed date. After the deadline has expired, the broker informs the interested parties who has won the bid. The offer is not binding as in an auction. If the offers are too low, the seller does not have to accept any of them. Conversely, the bidder can also withdraw from his offer.
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