A Highest Bidder Sale is a powerful marketing technique that lets you sell a property quickly — often in just one weekend — by creating competition among buyers. It works for junker wholesale properties, median-priced homes, and luxury estates alike .

And when combined with an option contract, you can profit from properties you don’t even own.

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Why Start with an Option, Not a Purchase?

In many markets, selling to a retail buyer is getting more difficult and taking much longer because there is a lot of REO and short sale inventory available. Finding someone who can qualify for a loan is more challenging because of new loan requirements .

Rather than buying a property and taking on the monthly mortgage payments, risk, and liability, it’s better to just get an option. An option is simply a contract to purchase with a contingency clause stating that something else must happen before you close. Your option could stipulate that you will only buy the house once you find a tenant or another buyer .

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How a Highest Bidder Sale Works

A Highest Bidder Sale is similar to an auction, except a licensed auctioneer is not needed and there’s no large upfront marketing fee. During a Highest Bidder Sale, potential buyers have two days to look at the house and submit a bid. There’s no pressure to make a fast decision, so it’s a relaxed buying atmosphere that gets many bids and sells for top dollar in a short period .

The Basic Structure

1. Get an option on a property with permission to market and conduct a Highest Bidder Sale
2. Market aggressively for one week before the open house
3. Hold a two-day open house (Saturday and Sunday, 3-4 hours each day)
4. Collect initial bids on a bid sheet (non-binding)
5. Conduct Round Robin bidding by phone Sunday evening until one high bidder remains
6. High bidder signs a contract within 24 hours with no contingencies

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Four Ways to Structure Your Option Agreement

Your option on the property needs to give you permission to market the property and conduct a Highest Bidder Sale. There are four ways you can structure the option agreement :

Structure	How You Get Paid
Flat Fee	You are paid a flat fee as a marketing consultant
Strike Price	Anything you sell the house for over the strike price is your profit
Profit Split	Anything over the strike price is split between you and the seller (50/50, 60/40, etc.)
Seller Financing	Collect a down payment, monthly payment spread, and back-end profit years later

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How to Find Properties for Options

With so many houses on the market and the increase in foreclosures, finding houses you can get an option on is easy. Here are proven sources :

• FSBO ads — Let the sellers pay for the marketing. Look in the newspaper and FSBO websites
• Expired listings — Great source of houses you can get an option on
• Craigslist — Watch for signs of motivated FSBO sellers
• Contingent contracts — Work with agents whose clients need to sell before buying
• New home builders — Buyers who need to sell their previous home before the new home sale closes
• Probate & inherited properties — One investor does 1 Highest Bidder Sale each weekend with an average profit of $10,000, all from probate leads
• Expats — People who want to move offshore if they could just sell their house
• Wholesale properties — Code violation lists and postcard campaigns
• Property locators (bird dogs) — Run ads to recruit people who find vacant and run-down houses for you

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The Mega Lead Generator

Part I: Active Bird Dogs

Post ads on Craigslist and Backpage in the part-time jobs section to recruit bird dogs who will actively look for properties for you. Offer $500-$1,000 for each house you buy because of their lead. This system alone can generate hundreds of leads each week at no cost.

Part II: Passive Bird Dogs (Moving Billboards)

Offer to pay $25+/month for people to put magnetic signs on their cars. You get 20, 30, or 100 moving billboards all around town at minimal cost. Signs should say things like “Sell Your House This Week,” “Stop Foreclosure,” “Owner Financed Homes,” or “Have an Ugly House?”

One investor had 145 calls in the first day after posting this ad on Craigslist.

Part III: Hire Virtual Assistants

Hire workers from OnlineJobs.ph to sort through Craigslist and Backpage ads, then send out email replies. The email can be simple: “Your house is just what I’ve been looking for. Please call me at 555-555-1212.”

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Marketing Your Highest Bidder Sale

One week before the open house, start an aggressive marketing campaign. The house is advertised at 50-60% of current market value to attract maximum attention. The disclaimer is that the sale is subject to the Seller’s Approval or Confirmation.

Sample Ad

Marketing Checklist

• Newspaper advertising
• Property website (e.g., HighestBidderSale.com)
• Craigslist/Backpage/Facebook — revise daily
• Press release — can get your story in front of thousands of media outlets
• Signs — 25-50 signs at major intersections leading to the house
• Flyers — to the neighborhood
• Marketing materials for the open house

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Open House Details

After a week of aggressive advertising, you have a two-day open house where potential buyers can take their time to walk through the house and look it over. It should last 3-4 hours each day, Saturday and Sunday.

Key Setup Points

• Have 2-3 people help — one to greet, one to “close” the deal by getting them to bid, and a backup
• Have a mortgage broker present — they can pre-approve buyers on the spot and share marketing costs
• Provide the inspection report — buyers make decisions easier when they know everything about the property
• Have comps available — justify your advertised value price
• Provide information about taxes, schools, and utilities
• Bake chocolate chip cookies — the smell makes the house feel like a home
• Keep the house light and bright — open all curtains, turn on all lights
• Add fresh flowers and soft music

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Round Robin Bidding

After the open house closes, the bidding continues by phone. Here’s how it works :

1. Call the highest bidder first and tell them the current high bid. Ask if they want to advance their bid
2. Call the second highest and so on down the list
3. Conduct several rounds until only one bidder remains
4. Each bid increase must be at least $500 (or $2,000 depending on your rules)
5. Set a cutoff time (e.g., 9 pm) so it doesn’t drag on for days

The high bidder is usually about 10% below the highest comps in the neighborhood. In some cases, the high bid is actually a little over market value.

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Why Highest Bidder Sales Work

1. Competition: You get as many people at the house during a compressed time as possible. Bidders see hundreds of others interested in the house and realize it must be something special
2. Auction fever: In the heat of round robin bidding, people have to WIN the bid as much as they want the house. The price gets higher and higher

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Advantages of a Highest Bidder Sale

• Built-in backup buyer — if the high bidder backs out, you go to the next highest
• Huge buyers list — you build a list of cash buyers in just 2 days
• Meet private lenders — many buyers at a Highest Bidder Sale are cash buyers and potential private lenders
• More deals — you will generate interest from other sellers who want you to do a Highest Bidder Sale for their house. You can get 1-2 options every time you do one

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Using Press Releases

A press release should be used to attract even more attention to your Highest Bidder Sale. Because houses are harder to sell these days, it is newsworthy to sell a house fast in a UNIQUE way .

A press release cannot be a sales letter — it needs to be newsworthy and tell a story about why you decided to sell the house with a Highest Bidder Sale or something unique about the property. You can get press releases written affordably at Fiverr.com and distributed through PRWeb.com or free press release sites.

One CashFlowDepot.com member had a press release distributed through PRWeb.com and within 24 hours had 82,000 views.

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Step-by-Step Recap for a Successful Highest Bidder Sale

1. Immediately after getting the option, set up a web page for the property
2. Start advertising the weekend BEFORE the sale
3. Show the contrast between starting bid and actual value (starting bid 50-60% of market)
4. Write and distribute press releases
5. Don’t worry if you don’t get many calls — all information is on the web page
6. Signs are the most important element — 25-50 signs minimum
7. Have backup signs — the city or realtors may take yours
8. Put a large sign in the yard the weekend before
9. Get the house inspected by a professional inspector
10. High bidder writes a contract within 24 hours with NO CONTINGENCIES
11. Note any items on the inspection report you’ve fixed or plan to fix
12. Build trust with bidders
13. Have tax, school, and utility information available
14. Have comps available to justify your value price
15. Have a mortgage broker at the open house both days
16. Ask the mortgage company to share ad and sign costs
17. If a buyer has an agent, they must pay their own commission — you cannot pay it
18. Bake chocolate chip cookies
19. Have napkins and small water cups
20. Only offer water — no other drinks
21. Outside and inside must be spotless
22. Add fresh flowers, soft music, welcome mat, potted flowers
23. Prepare for rain with mats and cleaning supplies
24. Have chairs in groups of 2-3 throughout the house
25. Keep the house light and bright
26. Have 2-3 people help both days
27. Keep the open house to 4-5 hours maximum
28. Be prepared to answer “Will you really sell it to the highest bidder?”
29. Make sure bidders know they must be available for round robin calls
30. Be firm with the rules

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Working with Liquidators for Free Advertising

A liquidator is an auction company that buys container loads of antiques, furniture, artwork, and other valuables. Their ideal situation is to find a vacant house they can stage with furnishings, then do a live auction at the house. They will spend up to $20,000 in advertising to attract bidders — and it won’t cost you a penny .

Important: Do NOT let the auction company sell the house. You conduct the Highest Bidder Sale as usual. Leverage their marketing to attract even more interest and bidders for the house.

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Key Takeaways

• Get an option, not a purchase — control the property without risk or liability
• Four ways to structure your option: flat fee, strike price, profit split, or seller financing
• Advertise at 50-60% of market value to attract maximum bidders
• Two-day open house with Round Robin phone bidding to create competition
• Round Robin bidding typically takes 1-2 hours and ends with one high bidder
• High bids are usually about 10% below the highest comps
• Build a buyers list, find private lenders, and get more deals — all in two days
• Press releases can generate tens of thousands of views for your sale
• Liquidators can provide $20,000 in free advertising for your sale

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Disclaimer: This page is for educational and informational purposes only. It does not constitute legal, financial, or tax advice. Option agreements and real estate sale methods are governed by state law and involve complex legal considerations. Always consult a licensed real estate attorney before entering into any option agreement or conducting a Highest Bidder Sale.