With this method of land sale the land is generally marketed with a date for sale by which purchasers must have submitted an open or a sealed bid. Offer envelopes are opened as they are received. Bidders may be invited to increase their bids, after being informed that a higher bid has been received following the closing date for initial bids.
The advantages of the Informal sales process are that it:
- formalises the sales process and creates a procedural surety around it.
- allows the agent to establish a clearer indication of the seriousness of the buyer (he may be asked for proof of funds).
- allows that agent to put all the guess work on the side of the buyer by asking them to name their maximum price If an acceptable offer is not received by the end date the land may then revert to a Private Treaty method of sale.