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Blind bidding leads to more conservative offers because noone wants to grossly overbid on a house. The ceiling is basically what you think is "fair". The seller
by jejeyyy77 5y ago
Blind bidding leads to more conservative offers because noone wants to grossly overbid on a house. The ceiling is basically what you think is "fair". The seller will then make a decision with very little back and forth - generally they will give you one chance to "improve" your offer.
Now, in an open bidding system, you are literally in competition for who can/is willing to pay the most for the home. The ceiling is what you can/willing to afford - back and forth with other bidders until literally the highest price is extracted.
- switchbak 5y agoThat kind of rationality is rarely found in a hot market. You'll essentially be driven to massive overbidding due to the highest bid in the group. In a big enough market with enough demand, you can be sure that high bid will be well beyond a rational amount. Fairness has essentially nothing to do with it. Once you lose 5-10 bids, you'll either give up on owning a home, move to the country or start upping your bid to suit.
- qwery 5y agoThe only way your bid gets accepted is when you overbid. If your "fair"/"what it's worth" offer gets accepted, you have overvalued the property. > generally they will give you one chance to "improve" your offer Of course, you have no idea what you're competing against, or if there even is a higher offer. > in an open bidding system, you are literally in competition for who can/is willing to pay the most for the home. This is true for blind auctions too. > The ceiling is basically what you think is "fair". > in an open bidding system ... The ceiling is what you can/willing to afford I don't see any reason why you couldn't set the ceiling to what you think is "fair" at an open auction.