The bidding process is a relatively new and specialized price finding mechanism for real estate. Compared to the traditional selling procedure in which the seller sets the price, the prospective buyers are the ones in this bidding process who make individual offers in the form of bids. The buyers continuously receive updates regarding the highest bid and can modify their bid at any time within a certain period.
The prerequisite for a successful bidding process is that many potential buyers are interested in the hotel or restaurant real estate.
Real estates in which only a few buyers are interested, are not suitable for the bidding process. If the seller finds himself alone during the viewing with only a few curious neighbors, it will likely not lead to a “bidding war.”
It is important to mention the difference of the bidding process for real estate to that of auctions:
· In auctions, the selling method presupposes that the seller would be prepared to accept a bid that is below his price expectations.
· In the real estate bidding process, the seller does not have to accept the bid of the highest bidder. The seller is free to choose and can end the bidding process even without a result. The seller can accept a bid if the price is what he had in mind. He may decline any bid at any time without stating a reason.
What makes the bidding process special?
· Obtaining a fair market price
· Pre-defined duration (usually relatively short)
· Only one viewing appointment
The implementation of the process is by invitation only (not public).
Are you considering using the bidding process for your operation? Please do not hesitate to contact us!