A silent bid auction takes place when there is more than one buyer interested in a property for private sale.
A silent bid auction allows each skilled sales person to negotiate the highest price from their buyer, with a signed Buyers Price Declaration. It is then placed in a sealed envelope and kept confidential, and is only opened along with all other offers in the presence of the seller.
As a seller determined to achieve the highest possible price, the one thing that you should never do is let your interested buyers know what other offers you have received. Why? Because the focus for the interested buyers becomes outbidding the competition by $1,000 as opposed to focusing on the highest price they are willing and able to pay. For example, if you have a bargain hunter bidding against an emotive buyer at a public auction, the bidding stops at $1,000 above the bargain hunters final bid. Any chance of getting the emotive buyer’s best price has been lost.
A Silent Bid Auction eliminates this, as buyers do not know what the other buyers are offering.
The highest bidder at a silent bid auction is the winner, yet you don’t necessarily get the highest price! Under a Silent Bid Auction with multiple offers, you often get tens of thousands of dollars more.
A Silent Bid Auction also guarantees you won’t fail publicly if your price is not reached.