How Does the Bidding Work?
Great question! This is not a standard auction, the highest bid is not always the winning bid. The buyers not only input their bid amount, but they also list any contingencies (closing date, Inspections, seller contribution, financing). When the bidding is complete the seller is presented with all of the offers and all of the terms, they can then compare the bids and choose the best one for their needs. Our team of experts will review all the bids with the seller to ensure they understand all of the terms and can come to the best decision. Additional features include Bid Extending and Reserve Price. The way Bid Extending works is if a buyer inputs a bid within the last 10 minutes, the bidding will extend 10 minutes and all buyers will receive a text and email advising them. Reserve Price allows the seller to set a reserve, which is a minimum bid, and buyers cannot submit a bid below that amount.
What are the Fees?
There is 0% commission for the seller. When buyers input their bids, a buyer's premium is added to the bid amount, so they know what their total bid is. The buyer is covering the cost of the purchase plus the buyer's premium. Transfer taxes and typical closing costs are still the responsibility of the buyer and seller respectively. The seller's dedicated agent will give them a net sheet with a breakdown of these charges prior to the start of the bidding.
Bid Now vs. Standard Full Service Listing
With both options you have full service support throughout the transaction. With the Bid Now option buyers have full insight into the total price including the premium and can see what others have bid but cannot see the other bidders' terms. This will drive the price up with buyers getting caught up in the bidding. With a Standard Full Service listing, buyers just submit their highest and best offer without knowing what price they are competing with. The biggest advantage of the Bid Now option is that commissions are covered by the buyer in the form of a buyers premium. This can also be a disadvantage, as buyers will factor this into their bid.