THE GOAL OF THE TOP-3 BIDS™ METHOD:
The TOP-3 BIDS™ online offer platform is a fair and seller-centric process designed to generate 3 highest and best offers for the owner within a compressed marketing period, typically 5 to 10 days. Fair and transparent bidding is good for buyers, too!
PHASE-1) PREVIEW PERIOD:
This is typically a 5 to 10-day window to allow an ample number of buyers to inspect a TOP-3 BIDS™ offering. During this time, buyers should visually inspect the property, determine their highest offer amount, and arrange for funding.
PHASE-2) ONLINE OFFER DEADLINE:
Practice bids are recommended, however most of the bidding occurs on the final day. This online offer period sets a range of value for a property and because all bid amounts are visible to other buyers, it allows every buyer the fair opportunity to land near the top of the bidding hierarchy. The bidder landing at the very top when the clock stops is not necessarily the “winner” – but is usually the favored buyer going into the formal written offer phase.
PHASE-3) FORMAL WRITTEN OFFERS, HIGHEST & BEST, VETTING:
The Top 3 Bidders will have two (2) calendar days to deliver their formal written offers and proof of funds or loan approval. Only offers from the online bidding will be considered (this prevents someone from "sneaking in" while known bid amounts are under review).
This phase is also a call for “highest and best.” Under highest and best… buyers have the ability to rethink their offer amount and/or restructure their contract terms such as closing date, earnest money, down payment, financing date, quality of proof of funds, etc.
PHASE-4) PRESENTATION TO SELLER:
On Day-3 following the online offer deadline, the Seller will be presented the vetted offers along with a single page summary that they will acknowledge in writing and select a primary offer and designate another as a backup. The Seller is the sole decision maker, not TOP-3 BIDS™ nor the affiliated agent representing the listing. The offer netting the seller the most money usually wins.
ACQUISITION PREMIUM (if an Acquisition Premium applies):
If required, add this verbiage to your written offer: "Buyer to pay an Acquisition Premium of $ * at closing, which is separate from and in addition to the sale price"
* the Acquisition Premium (AP) varies with each property and is identified on the customized online bidding page. See links at left to visit the bidding page and ascertain the AP. The AP can be added into your bid in you prefer to build it into your loan amount. Do this during the formal offer writing.
- 1) Select the property you have interest in;
- 2) Read the bidding instructions and terms for that specific property;
- 3) At end of bidding, the top bidders will be notified with formal offer instructions;
- 4) The real estate agents representing the top bidders will submit their buyer's formal written offer within 2 days, along with proof of funds and/or loan pre-approvals;
- 5) After vetting, the TOP-3 BIDS™ (including runner-ups) will be presented to seller on the 3rd day for review and to determine which offers will be accepted as primary and/or backups;
- 6) Final decision is solely the seller's choice, based on price, terms, etc., and presuming the offer meets or exceeds their minimum reserve amount;
- 7) Runner-up buyers have their choice of remaining as a back up or not.