Overview of Bid Process

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What makes an offer competitive? Price is important ¾most properties sell at or above list price. However, a high priced offer means nothing unless we have a high degree of confidence in the buyer’s ability and intent to close the transaction on the terms negotiated. To establish buyer credibility we like to see 1) that the buyer has invested their time in becoming deeply familiar with the property,  2) that the buyer’s underwriting assumptions are accurate, and inline with those of lenders, 3) that the buyer can demonstrate a history of similar acquisitions in which they performed.

 

Buyers often demonstrate their familiarity with the property by making some portion of their earnest money become non-refundable at certain key junctures in the transaction: the acceptance of their offer, the removal of the inspection contingencies, and the removal of the financing contingencies. A buyer that submits, along with their offer, a deal history that specifies the details of their most recent acquisitions – dates, addresses, brokers, lenders – is advantaged.

 

Once a buyer is selected the transaction will proceed through escrow and closing.

 

Why do you use this process?

We have developed this process, and refined it through many transactions because in a market where there is an in-balance, where there are more buyers than sellers, it has advantages for both buyer and seller. For the buyer, they can be assured of a transparent process with clearly defined dates and rules, which insures fairness by awarding the opportunity to purchase the property to the entity who values it the most and who is best qualified. In our process all buyers are treated equally. For the seller, as well, our process insures that the entity placing the highest value on the property, and showing the best ability to close the property on the terms negotiated, will likely be the buyer. In short, the process that we have developed serves to manage the offering and negotiating process in a way that is most fair to all parties.

 

NM Apartments promise:

Our commitment is to carry out each sale, using this process, in such a way that is open, honest, transparent and fair to all parties.

 

Our promise to our seller

For each property sold with this process we have a series of preplanned marketing milestones, tour dates, and bid deadlines.  We commit to our sellers to adhere to these.

 

Our promise to the buyer

We are committed to treating each buyer fairly and in a way that allows every buyer to compete on a “level playing field”. We have designed this process so that buyer’s might advance their cause on the basis of what they are offering the seller ¾how competative their offer in regards to price, time lines, and their familiarity with the property. We promise the buyer that our selection process looks only at these variables that benefit the seller. Other variables ¾whether they have their own agent, or who their agent is, whether they are in-town or out-or-town¾which do not impact the seller, will not affect how their offer is received.

 

Our promise to the buyer’s agent

We will accept the registration of your customer or client, with our registration and confidentiality forms correctly completed by your customer or client. Once our client accepts your registration, you are protected. We acknowledge you as the sole procuring cause for the sale. Past registrations have been rejected when we