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This seems intuitive, but it's wrong. As someone who went through the process, I think blind bidding suppresses prices, not inflate them. When you are making a
by jejeyyy77 5y ago
This seems intuitive, but it's wrong. As someone who went through the process, I think blind bidding suppresses prices, not inflate them.
When you are making a blind bid, the only information you have is the home itself. The ceiling for your bid is on what you think the house is "worth". You are very conscious about "overpaying" because you have no perspective on what other people are offering.
In open bidding, you are competing against other offers and the ceiling is basically what you can afford to pay.
Can't tell you how many times we lost offers because we didn't want to overpay - when the sold price was revealed we realized we would've paid another $25K on that had we known.
- OJFord 5y agoWell I suppose it depends on bidder mentality, sure, but in that case it's still better - you would have seen & bid the extra $25k and got it (maybe). > In open bidding, you are competing against other offers and the ceiling is basically what you can afford to pay. Well, what someone else can afford (and is willing) to pay. i.e. you never overpay, pretty much by definition. (I think there probably exist 'open' auction system where the highest bid (not second) is paid, but the main ones don't work like that, and nobody's suggesting that as far as I've seen.)
- jejeyyy77 5y agoYeah I 100% agree open bidding is better in that it is a more honest and transparent process. I just don't think it will help with prices.