No. If you are the high bidder, then you are simply making an offer to purchase; the same as any other sale. You are only committed to purchase the home once the contract is executed and gone beyond the traditional “Option Period”. Again, this is the same as any other sale.
Will I need to make a deposit in order to participlate in a 5 Day Method sale?
No. A deposit is not necessary in order participate in a 5 Day Method sale.
Are 5 Day Method sales cash only sales?
No. With a 5 Day Method sale the high bidder can finance the home or pay cash like any traditional real estate transaction.
Is the winning bidder required to make a down payment?
Yes, a down payment and earnest money are required at the time of completing the contract (if the seller accepts the highest offer), as with any traditional real estate transaction.
Am I required to bring any funds in order to place a bid?
No funds are required in order to place a bid.
If I’m the best bidder, can I have the property inspected?
Absolutely. You can have the home inspected during the “Option Period.” But typically, homes sold used the 5 Day Method are already pre-inspected by a licensed real estate inspector. Once the “Best Bid” is accepted and a real estate contract is executed, the transaction process is no different than a traditional real estate transaction.
What is required so I can participate in the 5 Day Method sale and bid?
You need to visit, register and inspect the property in order to be eligible to bid. You can register online or in person.
Why should I participate in a 5 Day Method sale?
Some of the many benefits to a 5 Day Sale are: transparency of the sales process, having direct access to the seller to ask questions and paying market value. In addition, often the home is pre-inspected prior to the open house.