What “For sale by private bid” means

There is also a relatively new thing, called “For sale by private bid”. It means that the house is advertised with asking price, to give buyers some idea what seller wants for the house. There is also a day when the bidding closes. Whoever is interested, makes his bid in the agency before the closing date, then seller reviews all the bids and chooses the highest one. Agency gets in touch with that buyer and asks him to confirm his offer, from there on its like private sale.

Buyers like this way of purchasing property because less pressure is involved than in auction. Sellers like it because it has a closing date and drives buyers to make up their minds.

Private sellers

What is a private sale?

A private sale is also called “Private Treaty”. A house is advertised in newspapers by estate agents, whoever is interested comes to the agency and makes his offer, the seller considers the offered price and then buyer can do some negotiation about the conditions of sale etc. When they agree on everything, contracts are written, signed and buyer pays a deposit. Unlike in auction, several states have “cooling off period” which means that buyer has X days to change his mind and if he decides not to buy – seller must give the deposit back.

Good points of private sale in buyer’s eyes are:

• He can take the time, no pressure involved
• The price and the conditions of sale can be negotiated
• Cooling off period is your way out in case problems were found in the house
• To sellers private sales cost less than an auction, which can result in lower asking price