how to handle bidders in a fsbo

Yes. I have encountered this situation personally. There is a successful methodology handle this.

Assuming all interested parties are equally qualified (not the exact case here, so you will have to make allowances) the first is to simply tell all parties - "Please submit a bid in writing via email by Sunday at 5:00 pm. I will review the offers, and will inform the highest bidder of their successful bid at that time. Please be aware that I will expect the successful bidder to include their lawyer's name and contact information with their bid, and my lawyer will contact the successful bidder's lawyer on Monday morning first thing. If the successful bidder's lawyer is not prepared to move forward immediately to a signed and fully executed contract within a reasonable time frame (five business days) we will immediately move to the underbidder." This seemed to me like the fairest way to accommodate everyone equally.

The only problem I encountered at the time is that there were two people (out of a total of three) in my case who really wanted to purchase my place. They both INSISTED on having the opportunity (if they were an underbidder) to increase their offer - in essence, they were both willing to an auction. So that's what I did, because that's what they both wanted.

thanks matson. I think I may try that.

abcdefg: There are additional tweaks I learned when fine-tuning the auction process, should your situation encounter that eventuality....

Flmaozzzz. In this mkt, who enters into a bidding war? Flmaozzzz

w67: I agree with you - but hey - good for abcdefg! Squeeze em' for all they're worth, I say!

there arent enough sealed bid sales here in NY.

it's pretty common on unique properties in sydney. basically people who really want ti overbid rather than creaping along until someone drops out.

i was in this situation a few months ago, just with brokers. the seller's broker requested best and final with what financing will be done, if there is any. anyone who submitted the offer with financing had to have a pre-approval from a major bank.

i think that matsonjones has everything down, i'd just change
"Please submit a bid"
to
"Please submit the best/final bid...."

this will clarify to all parties that they should go it with whatever they think the apartment is worth to them. the "winner", as the seller's broker put it, will be clear. i would never use that term though.

I have no idea what W67 means. In any market you can generate multiple bids, if that is what you want to do, by pricing the apartment below comparables. The further below, the more bids you receive. Not rocket science or flmaozzzzzzzzzzz-worthy comedy.

If they want to bid aganst one another, I'd be transparent and announce an auction to the bidders. Sounds like fun.

Excitement of bidding war and prospect of an additional $20K aside, I think the important issue is qualifying these buyers. How much are they financing? (If this is a co-op, you have a whole other bag of questions, as well)

Is anybody willing to waive or modify standard mortgage contingency?
Timeframe for closing - would somebody do it more quickly than the others?
It is very unlikely that they are equally qualified and the most qualified may also be the most market-savvy and in turn the lowest of the 3 offers.

If total dollar amount cleared is the biggest issue, then disregard, but the worst thing would be to take $20K more and have the deal fall through 3 months from now.

price, speed and terms