Most sellers and brokers use a marketing process that contains a specific “Call for Offers” date upon which initial bids are due.  The goal of this effort is to stage follow-up e-mails and calls to encourage all offers to be received at the same time.  This creates a sense of urgency and allows for psychological leveraging.  I personally, like to provide a sample letter of intent so that all offers are presented in the same format.

One of the most critical aspects of any sale transaction is to accurately assess the certainty of closing with specific buyers.  The most proficient seller or seller’s broker should personally interview each offeror and buyer’s broker (if so represented) and should request a description of their company, internal approval authority and process, and source of funds and track record over the past several years (including whether they have purchased any property in the last 24 months).  In addition, you should request a list of at least two references from unrelated sellers, who the buyers have previously purchased investment or user properties from in order to ascertain whether or not they have re-traded the price following due diligence.

Armed with the above information, you (or your broker) should then compile a comprehensive spreadsheet, comparing the offering terms and the results of your investigations.  Based on your due diligence and the recommendations of your trusted consultants, develop your best choice for a limited secondary field of offerors.  Once you have made a decision as to whom to move forward with, request a “best and final” bid by a definite date.

Upon selecting the final bidder, try to keep those quality offerors who were not selected in a fallback position, so that, should the chosen buyer decide not to move forward for any reason, you can move on to the next most likely candidate without having to return to the market.