Questions and Answers About Round Robin Bidding
Q. Why is the home being sold by Round Robin high bid process?
A. Because a bidding process allows all buyers to come to the home within a short period of time so it provides a fast, efficient and convenient way to sell a home in a manner that is fair to both the buyers and seller. We need to sell this home FAST, this is the reason for the extremely low starting price.
Q. How does the Round Robin Bidding work?
A. The Round Robin Bidding Process is a buyer friendly approach that eliminates all the usual risks associated with buying at auction. On Saturday there will be an open house from noon to 5:00 pm to visually inspect the property and sign up to participate in the bidding as well as place an initial bid. The final bidding is held by phone on Saturday evening. Starting at 6:00 pm each bidder will receive a call informing him or her of the current bid and offering them the opportunity to increase their bid in order to proceed to the next round. Rounds will continue until only one highest bidder remains. Buyers will need to be available by phone Saturday evening to receive multiple phone calls.
Q. How do I sign up?
A. Come to the open house and visually inspect the home. If interested, fill in your name, phone number and bid on the bid sheet.
Q. What are the Rules?
A. You need to visit and inspect the property during the open house. Complete the bid sheet so that you can be contacted on Saturday evening. You will need to be available by phone on Saturday evening beginning at 6 pm. You will need to be available Saturday evening at 9 pm to sign the contract if you are the winning bidder. If you are the highest bidder and you cannot comply, and alternative arrangements are not made prior to Saturday night, we may elect to call the next highest bidder and you may lose your chance to buy the home.
The seller may decline any and all offers not acceptable to them.
Q. How much do I need for a deposit?
A. You will need a small deposit Saturday evening only if you are the winning bidder (usually $ 500).
Q. Will there be any liens or encumbrances on the home?
A. No, you will receive a Warranty Deed and we will even purchase title insurance for you. Any mortgages or debts against the property will be paid from the proceeds of the sale so that the home is completely free and clear.
Q. Will the Purchase and Sale agreement allow for contingencies?
A. Yes. Your offer will be contingent on you getting financed for the home and contingent on a satisfactory home inspection.
Q. Will we be able to find out the current high bid?
A. Yes. We will tell anyone at anytime what the current best bid is.
The Following is very important!
You MUST register your name, telephone number, email address and initial bid amount at one of the Inspection/Open House Dates/Times. Only registered bidders can be included in the Final Round Robin Bid process and you must enter complete information...regardless of your bid amount, you will be able to participate in the final bidding.
Making a Bid at the Open House DOES NOT OBLIGATE you to buy the property...it only allows you to participate in the private telephone bidding process and establishes bidding order.
The Round Robin Final Bid Process will begin at 6:00pm via telephone. We will call all interested bidders who registered until there is one high bid and no other bidder wishes to top it. All bids must be in a minimum of $1,000.00 increments. If there is more than one bid at a level, the earlier bid will be honored.
The caller will say '' Currently there are "X" number of bidders in this round and the current high bid is $--------- . Would you like to advance the bid?" You can take this opportunity to advance the bid (usually $ 1,000. increments) and be included in the next round or decline and drop out from the bidding (again...there is no obligation). Once you drop out we thank you for participating and you will not be called again.
Once down to the final 2 bidders (sometimes 4) we will start to inquire as to your financing and any contingency terms (All cash, contingent upon bank financing, approval letter, contingent upon the sale of your house, etc).
Sale is for the Highest and BEST bid/offer. Example: an "All Cash" offer closing in less time may take precedence over a "Higher" offer contingent upon financing and taking longer to close or that's contingent upon the sale of a house. Seller reserves the right to accept, reject or rescind any and all offers tendered. A sale is not finalized until a Standard Real Estate Sales Contract is executed between Buyer and Seller and Earnest Deposit Funds have been tendered to Title Company. We need to sell this home FAST so if you get preapproved before or during the sale you will get a great price on the home.
If you are the winning party we will make arrangements to meet with you at the home to execute a Standard State approved Real Estate Purchase Agreement. Earnest money deposit in the amount of $ 500 will be due at this time. Clear and marketable title will be conveyed by the Seller.
RE/MAX Associated Brokers, Inc.
