Yes, you are required to take the highest bid no matter if it is finance or a cash offer. You cannot pick and choose as the Terms and Conditions of sale were set and agreed to with your agent prior to the Openn Negotiation process commencing.
Under the contract conditions if the technology should break down for whatever reason then you will be required to cancel the Openn Negotiation and reschedule it.
If it doesn’t reach the reserve price, then you have the right to negotiate with parties who have indicated interest in the property.
Yes, the reserve price can be changed. It may be changed upward or downward during the Campaign Bidding Stage. During the Final Bidding Stage it can only be amended downward to ensure the legitimacy of the process is not compromised.
No. Under the terms and conditions of an Openn Negotiation , the seller is not allowed to undertake a vendors bid, or cause a bid to be made on their behalf.
Each “Terms Accepted ” bidder has signed a full legal and binding contract, with the only part of the contract missing being the price. The price can only be determined by the Openn App. Under the contract signed by the bidders, the final contract price is signed off by the Agent/ auctioneer on their behalf.
Should a buyer wish to bring forward the Openn Negotiation, there are two strategies. Firstly, by clicking the Buy it Now button and the property can be purchased at that price. Alternatively, to reduce the competition from more bidders registering, the best strategy is to put forward a bid that will reach the sellers reserve price which will likely result in the seller bringing the negotiation forward with the existing registered bidders.
You will generally be sitting with the Agent throughout the Final Bidding Stage. This allows direct discussion regarding any change in reserve price and bidding increments and to sign off on the final purchase price that is determined by the bidding on the Openn App.
No, the whole premise of having buyers Terms Accepted is that it allows the maximum possible number of buyers by creating a level playing field. The cash buyer is generally seeking to get a “discount” for being cash, but if the seller is happy with the terms of the other bidders, then all bidders are considered “ equal ”. It’s important when setting the terms and conditions of sale with your agent you are clear as to what you will and won’t accept ie . length of settlement, offers subject to finance, deposit amount or any other item you consider important. It is vital that you work closely with you agent to set these terms or ask for their advice as to what is fair and equitable.
Openn competition is not only important for the sellers to see where the market really is for their property but it is also important for the buyers.Human behavior around any purchase is that if we think that there is no competition we want to pay as little as possible. However, under competition and the ability for some one else to see what they are prepared to pay, you can legitimately justify that the price is fair and from there you can justify what you are willing to spend. In a normal sales situation when you have no idea of what price needs to be beaten you are left to a situation of guessing what you think someone else may pay, yet you will rarely risk spending all you have given the danger of paying too much. With Openn Negotiation the playing field is level for all participants and you can choose what you are willing or can afford to pay because it is an active process with all buyers competing for a property at the same time.
At the outset, interested buyers make formal registration with the Real Estate Agent, clearly stating their proposed sale conditions such as finance clauses, deposit amount, settlement period and any other conditions they wish to include as part of the sale. The buyer’s registration is complete once the seller agrees to all their terms and conditions and only buyers who have completed this stage are allowed to engage in the Openn Negotiation process. At this point, the interested buyer will be requested to submit their starting price for the property on the Openn app – this does not have to be their highest price however it commences the bidding process. As the number of registered buyers is accessible to all parties, this creates confidence about the level of market interest in the property. The Openn app and agent informs all buyers of each new price that is submitted which gives everyone the chance to increase their offer if they wish to. Buyers may stop bidding and withdraw at any time.
Openn Negotiation is a method of sale which takes the best parts of auction, private treaty and closing date sale and blends them into one, streamlined process.This process creates a competitive environment and allows complete transparency for all terms accepted buyers to not have to miss out on a property because they didn't know what price they had to beat.
To take part in the Openn Negotiation process a buyer is required to place an opening bid via the Openn App during the campaign stage. Should they wish to make a further bid in the Campaign Bidding Stage they simply do so by clicking the Improve Bid button. During the Final Bidding Stage they can bid simply by clicking the Make Bid button. Once they have made their opening bid they are under no obligation to make further bids.
As with any sales process, if the buyer does not wish to participate, they can pull out any time prior to having their offer accepted by the seller.
The $400 fee for conducting an Openn Negotiation through the Open App is paid by the Vendor under Vendor Paid Advertising. This covers the cost of downloading the property onto the Openn Negotiation web portal, advertising the property on the Openn Negotiation web portal, and managing the sale through the Openn App. As the listing Agent you receive 400 complimentary Observer tokens, valued at $800. These can be sent to your database, particularly those who may be interested in buying the property, or those who have a similar property and might be considering selling.
Observers are individuals who are interested in downloading the Openn App and watching the Openn Negotiation process you are conducting. Observers is an excellent marketing tool for you to generate interest in the property, and attract both potential buyers and potential sellers. When listing an Openn Negotiation, you will receive 400 complimentary Observer tokens, valued at $800. These can be sent to your database, particularly those who may be interested in buying the property, or those who have a similar property and might be considering selling. The property will also be exposed to potential buyers and sellers who you may not be aware of, who download the Openn App and pay $2 to watch the Openn Negotiation.
No. If the Agent or the Seller does not want to run a reducing auction during the campaign stage using the Buy it Now function, they simply do not fill in these fields when setting up the Openn Negotiation.
Yes. You set the Buy it Now start price and the Buy it Now end price before the Campaign Bidding Stage starts. At any time you may remove the Buy it Now price simply by removing it from the Agents screen.
Terms Accepted bidders will receive an email as well as a push notification from the Openn App. We advise that the Agent will also call the Terms Accepted bidders directly to notify them.
If the seller decides to bring forward the Openn Negotiation Final Bidding Stage, all Terms Accepted bidders will receive a minimum 12 hours notice of the new date and time.
The amount and timing of payment of the deposit will be addressed in the Terms and Conditions of sale that are submitted to the seller for acceptance. We advise making recommendations to the bidder as to what would be acceptable to the owner, generally with a portion to be paid within 3 days of the Openn Negotiation being completed, and the balance of the deposit 7 working days thereafter.
Terms Accepted bidders sign a full legal contract to purchase the property. The conditions acknowledge that should a bidder place the highest bid above the reserve price, will have purchased the property at that price. The Auctioneer will then sign off on their behalf to complete the contract.
Like any other form of sales process, there is an onus on the prospective purchaser to make themselves available at the time the sales process is undertaken.
The buyer can be located wherever they wish to be, home, office etc, as long as they have appropriate access to the internet an / or WiFi.
No, under the terms and conditions of an Openn Negotiation the seller is not allowed to undertake a vendor bid, or cause a bid to be made on their behalf.
We use a traditional four - week sales process to try and gain as much interest as possible. By restricting it to four weeks we can drive demand and gain the best possible price in a shorter timeframe than some of the more traditional methods. By creating an end date, buyers must act if they want the property.
With all other methods of sale there is a high level of consumer rejection either due to lack of transparency or mistrust of agents. Worst of all in private treaty there is no clear and legal way to openly share other buyer’s prices without creating a Dutch auction and an unfair sales environment. With Openn Negotiation no buyer need miss out from not knowing what price they need to beat. This benefits the seller and the buyer. Openn Negotiation is the best way to maximize competition for the property.
Should a buyer wish to bring forward the Openn Negotiation, there are two strategies. Firstly, by clicking the Buy it Now button , the property can be purchased at that price. Alternatively , to reduce the competition from more bidders registering, the best strategy is to put forward a bid that will reach the sellers reserve price which will likely result in the seller bringing the negotiation forward with the existing registered bidders.
With Openn Negotiation there are three options if you want to buy it now:
What most people are worried about with shared or open priced negotiation is that they will be disadvantaged by the Agent by them not giving both buyers fair opportunity to buy the property. With Openn Negotiation this simply can happen once someone is a “Terms Accepted” buyer. The major benefit for buyers in this process is that once registered they can’t be kept in the dark about other buyer’s prices and have every opportunity to better the price and secure the property they have their heart set on. In all other methods (exceptauction) if there is more than one buyer, the buyers are kept in the dark with what exactly the other buyers price is.
The owners will generally be sitting with the Agent throughout the Final Bidding Stage. This allows direct discussion with the seller regarding any change in reserve price and bidding increments and to sign off on the final purchase price that is determined by the bidding on the Openn App.
A seller would likely start an Openn Negotiation early when several bidders are Terms Accepted and the Reserve Price has been reached during the Campaign Bidding Stage. The transparency of the process provides real time feedback to the seller on the price and interest in the property throughout the campaign period, so when the reserve has been met they may start the Openn Negotiation early to keep the current Terms Accepted bidders engaged.
To take part in the Openn Negotiation process you need to place an opening bid via the Openn App during the campaign stage. Should you wish to make a further bid in the Campaign Bidding Stage you can do so by clicking the Improve Bid button. During the Final Bidding Stage you can bid simply by clicking the Make Bid button. Once you have made your opening bid you are under no obligation to make further bids.
As with any sales process, if you decide you do not wish to participate, you can pull out any time prior to having your offer accepted by the seller. If your offer has been accepted by the owner and agent, you cannot pull out.
No. If the Agent or Seller does not want to run a reducing auction during the campaign stage using the Buy it Now function, they simply do not fill in these fields when setting up the Openn Negotiation.
Terms Accepted bidders will receive an email as well as a push notification from the Openn App. Agents will likely also call you to notify you directly.
If the seller decides to bring forward the Openn Negotiation Final Bidding Stage, all Terms Accepted buyers will receive a minimum 12 hours notice of the new date and time.
The amount and timing of payment of the deposit will be addressed in the Terms and Conditions of sale that are submitted to the seller for acceptance. The Agent will make recommendations to you as to what would be acceptable to the owner, generally with a portion to be paid within 3 days of the Openn Negotiation being completed, and the balance of the deposit 7 working days thereafter.
Terms Accepted bidders sign a full legal contract to purchase the property. The conditions acknowledge that should you place the highest bid above the reserve price then you will have purchased the property at that price. The Agent will then sign off on your behalf to complete the contract.
Yes. There will be a practicing area on the website and Openn app that allows buyers, sellers and agent to p ractice the use of this very simple to operate technology.
With Openn Negotiation there are three options if you want to buy it now: Be the first person to register and put in a price that the seller may accept (above the seller’s reserve price). With no other competition, the seller may accept your bid and you secure the property. If there are other bidders, you can try to make a bid high enough to knock the other bidders out of the competition and put the price above the reserve price. As the terms accepted buyer you may press the buy it now button and accept that price to avoid any openn competition.
You may place as many bids as you like to successfully purchase the property. Smart buyers quickly work out that making bids above the agreed bid amount can show confidence and sometimes knock out other bidders early or may also discourage other potential bidders from registering, hence reducing competition in the Final Bidding Stage. During the Final Bidding Stage, each time someone bids, the bidding clock resets and allows two minutes for any other bidder to make their next bid. You can't bid against yourself, but you can try to knock other bidders out by bidding a significant amount above the agreed bid amount. You can decide to increase and decrease the amount that you wish to bid if it is above the minimum bid amount. If the agent sees the bidding slowing down, they can reduce the bidding amount. When the bid is improved, the 2 - minute clock restarts to give all buyers a chance to bid at the lower bid amount. Once the property is past the reserve price it will sell to the highest bidder when the bidding stops and the clock runs out. The two - minute clock is designed to give buyers multiple bids and provide plenty of time for you to determine your next bid. Note that the agent, who is usually sitting with the owner, can pa use the negotiation if required and sp eak to the owner to: Set new bidding increments; To determine when the home meets the reserve or reduce the reserve if required; To call the buyer direct to encourage an additional bid or to determine if you are out of the process.
If you hold off registering, you risk the possibility of Openn Negotiation starting early and being unable to participate. Once you register you can withdraw at any time up until the property has sold to another party – you are in complete control. The only downside is if you fail to register and the property sells at a price which you could have afforded. If your Terms & Conditions are accepted, the property cannot be sold without your knowledge. Throughout the whole process, you will be advised as to where the pricing of the property sits and therefore what price you will need to beat to secure the property. You will know where the current bid is throughout the campaign and the control rests with you as to whether you want to improve on your bids to try and knock out other buyers.