The Upset Bid Process This method allows you to initiate the purchase of a property by making a direct offer to the town, which then opens the floor for other competitive bidders. Step 1: Make an Initial Offer You submit a formal "Offer to Purchase" directly to the town for a specific piece of property. Step 2: Town Review & Earnest Money If the town board is interested in your offer, they will pass a resolution to accept it conditionally. You must place a 5% deposit (bid bond or cash deposit) with the town clerk to secure your position while the public bidding period opens. Step 3: The 10-Day Public Challenge Period The town advertises your offer to the public. Other buyers now have 10 days to outbid you. To beat your offer, a competing buyer must submit a "qualifying upset bid" This new bid must beat yours by at least 10% of the first $1,000 plus 5% of the remaining balance. They must also submit their own 5% deposit. while the public bidding period opens. Step 4: Winning the Property If no one outbids you within those 10 days, the town board officially awards the property to you. If someone does outbid you, the 10-day clock resets. The advertising process repeats for the new highest bid. This cycle continues until a 10-day period passes with no new higher bids. If you are outbid and choose not to counter- offer, your 5% deposit is safely returned to you.