You may have heard of Biddit. It is a site that allows you to bid on a house, apartment or land while staying at home. Very practical but how does the sale go? What are the aspects to remember? Advice from Mark van Beneden, Notary.
How does selling with Biddit work?
As with any sale, a file will be prepared by a notary. Search for the property, the seller to make sure that everything is fine.
Then the ad will be posted on BIDDIT. Hobbyists have several weeks (usually 5 weeks) to visit the property and ask their questions. The start of the sale is clearly indicated.
From this date, amateurs can submit a bid via computer or smartphone for free. The notary determines the closing date of the auction from the beginning. Each exhibitor is bound by his bid until closing day.
At this time, the notary calls the highest bidder to come and sign the deed of sale.
This simple system replaces the traditional public selling system that requires candidates to go to auction rooms.
Bids can be submitted manually or automatically up to a pre-set maximum. All presentation is visible on the site. When the auction closes, the highest bid is taken into account. If the seller accepts, the sale is complete. The minimum price is often set and if the minimum price is reached, the sale automatically becomes ideal.
Security It is optimal for this type of sale. This is done under the control and responsibility of the notary public. They give legal certainty of this transaction (urban search, pollution, mortgage, possible fees from a trustee, etc.) This information is necessary for the buyer to get a more accurate idea of the price.
The notary also checks the ability of the seller and buyer. In fact, the verb must be true.
So the big advantage of BIDDIT is speed with respect to offerings
It is possible to visit the property but often the site provides information on a virtual visit that can please the amateur. The transaction can be completed without the presence of the buyer/seller.
- One might think that a public sale results in a fair price. Perhaps there is less stimulation than in the auction room. Perhaps every offer is “thoughtful” because the buyer has the time. What is impressive is the enthusiasm of buyers a few minutes before the fateful hour: the market is racing!
- Many agencies have attempted fake public auctions but do not provide the security of the BIDDIT system. We’ve seen in recent months that offers were made when the property was about to sell. So the last amateur was forced to raise his price to get the item, and this is only under pressure from the broker who claimed he got a higher bid.
- It is important to know the deadlines. The purchase price must be paid within 6 weeks from the moment of acceptance of the sale; Costs must be paid within 5 days (notary fee, search costs, registration fee, mitigation).
- If a pre-funded clause is included in the specification, it is possible to submit an offer. This is rare because it means that if the loan is not obtained, the sale must be rescheduled.
- Signing the bond confirms the sale.
- It is necessary, of course, to study with the notary all the elements taken into account in the sale: Is the person who is buying married? What is his marriage contract? Has the buyer contacted his bank beforehand? Is the operation possible?
- All bids/auctions submitted are confidential. Nobody has access to the identity of the people bidding. You can bid in your name or through an official power of attorney.
Buying multiple properties? Maybe
- If you do not honor your obligations, the notary must return the property for sale (sale on Folenchère). If the price is not reached, the person who has not respected his obligations will have to pay the difference.
- A notary may ask for a deposit.
- The buyer cannot involve his own notary, and the seller’s notary is in control.
- It is possible to choose your own notary for a potential deed of credit (if the bank asks for a mortgage on the acquired property).