Frequently Asked Questions
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 sellers.
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 a multiple bid home. On Saturday, May 18th, there will be an open house from 12 pm to 3 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 that evening. Starting at 5 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 bidder remains. Buyers will need to be available by phone the evening of the Open House to receive multiple phone calls.
Q: How Do You Sign Up?
A: Come to the open house & visually inspect the home: interested? Fill in your name, phone number, and bid on the bid sheet.
Q: What Are The Rules?
A: You will need to be available on the day of the Open House at 5 pm to participate in the Round Robin. You will need to be available to sign the contract by noon the next day, if you are the winning bidder. If you are the highest bidder and you cannot comply, and alternative arrangements are not made prior to Sunday night, we may elect to call the next highest bidder and you may lose your chance to buy the home.
The sellers may decline any and all bids not acceptable to them.
Q: How much do I need for a deposit?
A: No deposit is needed until an Offer to Purchase is signed and accepted. At that time a minimum of 2-3% of the purchase price is required to be sent to escrow.
A: What happens to the deposit?
A: The deposit will be written in your contract as "initial deposit" and applied to the purchase price.
Q: Will there be any liens or encumbrances on the home?
A: No, you will receive a Deed and title insurance on the property. Any liens 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 Real Estate Purchase Agreement allow for any contingencies?
A: Yes, all the usual contingencies in the purchase contract remain, including loan approval and a satisfactory home inspection.
Q: Will we be able to find out the current high bid?
A: Yes. We will tell anyone at anytime, during the Round Robin Bidding Process, what the current best bid is.
This is not a foreclosure, short sale or bank owned property!
THE FOLLOWING IS VERY IMPORTANT! You MUST register your name, telephone number, email address and initial bid amount at the Open House. Only registered bidders can be included in the Final Round Robin Bid process and you MUST enter complete information...regardless of your bid amount, to 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 established bidding order.
The Round Robin Final Bid Process will begin at 5:00 PM 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 initial bids must be in a minimum of $5,000 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 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.
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 one that is contingent upon the sale of a house. Seller reserves the right to accept, reject or rescind any bids before the formal California Real Estate contract is executed. A Sale and Bid is not finalized until a California Residential Purchase Contract is executed between Buyer and Seller.
If you are the winning party we will make arrangements to have you sign the California Residential Real Estate Purchase Contract. If you are working with an agent, we will ask your agent to write the contract. Earnest money deposit in the amount of 2-3% of the purchase price will be due when escrow is opened. All offers are As-Is, with no known defects, and the right to inspect.
Attn: Realtors - Feel confident, your commission is protected. If you send your buyers, just have them sign in with your name as "how did you find us". If your buyer is the successful high bidder, write the RPA-CA contract and your commission is paid as in any residential real estate transaction. See MLS.
©2014 Donna Reid.
Licensed in California
CalBRE#01365722
We take your privacy seriously.
Your personal information is collected to send you the additional information that you requested about the real estate, mortgage, and affiliated products and services.
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 sellers.
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 a multiple bid home. On Saturday, May 18th, there will be an open house from 12 pm to 3 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 that evening. Starting at 5 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 bidder remains. Buyers will need to be available by phone the evening of the Open House to receive multiple phone calls.
Q: How Do You Sign Up?
A: Come to the open house & visually inspect the home: interested? Fill in your name, phone number, and bid on the bid sheet.
Q: What Are The Rules?
A: You will need to be available on the day of the Open House at 5 pm to participate in the Round Robin. You will need to be available to sign the contract by noon the next day, if you are the winning bidder. If you are the highest bidder and you cannot comply, and alternative arrangements are not made prior to Sunday night, we may elect to call the next highest bidder and you may lose your chance to buy the home.
The sellers may decline any and all bids not acceptable to them.
Q: How much do I need for a deposit?
A: No deposit is needed until an Offer to Purchase is signed and accepted. At that time a minimum of 2-3% of the purchase price is required to be sent to escrow.
A: What happens to the deposit?
A: The deposit will be written in your contract as "initial deposit" and applied to the purchase price.
Q: Will there be any liens or encumbrances on the home?
A: No, you will receive a Deed and title insurance on the property. Any liens 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 Real Estate Purchase Agreement allow for any contingencies?
A: Yes, all the usual contingencies in the purchase contract remain, including loan approval and a satisfactory home inspection.
Q: Will we be able to find out the current high bid?
A: Yes. We will tell anyone at anytime, during the Round Robin Bidding Process, what the current best bid is.
This is not a foreclosure, short sale or bank owned property!
THE FOLLOWING IS VERY IMPORTANT! You MUST register your name, telephone number, email address and initial bid amount at the Open House. Only registered bidders can be included in the Final Round Robin Bid process and you MUST enter complete information...regardless of your bid amount, to 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 established bidding order.
The Round Robin Final Bid Process will begin at 5:00 PM 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 initial bids must be in a minimum of $5,000 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 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.
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 one that is contingent upon the sale of a house. Seller reserves the right to accept, reject or rescind any bids before the formal California Real Estate contract is executed. A Sale and Bid is not finalized until a California Residential Purchase Contract is executed between Buyer and Seller.
If you are the winning party we will make arrangements to have you sign the California Residential Real Estate Purchase Contract. If you are working with an agent, we will ask your agent to write the contract. Earnest money deposit in the amount of 2-3% of the purchase price will be due when escrow is opened. All offers are As-Is, with no known defects, and the right to inspect.
Attn: Realtors - Feel confident, your commission is protected. If you send your buyers, just have them sign in with your name as "how did you find us". If your buyer is the successful high bidder, write the RPA-CA contract and your commission is paid as in any residential real estate transaction. See MLS.
©2014 Donna Reid.
Licensed in California
CalBRE#01365722
We take your privacy seriously.
Your personal information is collected to send you the additional information that you requested about the real estate, mortgage, and affiliated products and services.