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I just got back from snowy Colorado after another successful Highest Bidder Sale.
On this one, the owner owed $1,500,000 on the first and $350,000 to a 2nd
the retail value in today’s market is around $1,000,000 max. the house next door recently sold for $989,000.
I talked to my contact at the bank to get a preapproval for a short sale of $750,000 on the first. I did not negotiate a discount on the 2nd yet, but I feel confident that I can get the # I want.
If necessary, I’ll buy the 1st, then foreclose to wipe out the 2nd. so, they can either cooperate or lose all.
My starting bid was $599,000 ( at 40% LESS than market value)
Because this was a resort area, there were not as many attendees. Most buyers would want this as a 2nd or 3rd, or 4th home.
the house sits high atop a ridge overlooking Lake Dillon with a 270 degree view of mountains. It is less than 30 minutes to 5 ski resorts. It is kind of isolated and definitely does not get any “drive by” traffic.
I got in on Wednesday afternoon. On Thursday, Hank Baltar ( came in from Florida to learn how to do HBS) and I handed out flyers to all real estate offices thinking it would help traffic.
For 7 days, everyday I was updating all the online marketing I was doing and sending out press releases in hopes it would attract more bidders.
On Friday, Chuck Hansen, an ESG member from California who came up to learn how to do HBS, and Hank along with John Kane ( ESG member in Colorado) put out signs.
The HBS started at 9 am on saturday.. That was a mistake. People in resort areas get a late start. I think the first person showed up about 11.
I probably only had 80-100 people total. And 10 bids. Most all bidders were cash buyers. Three of the 10 were out of state and bidding site unseen. One buyer in Miami did hire a photographer to take more pics for him.
The house sold for $970,000!
The weather was perfect on Wednesday – Sunday. Sunny & Mid 60’s during the day and mid 30’s at night.
On Monday morning, I woke up to a snow storm. It was great!
Jackie
p.s. Only 3 real estate agents showed up and they were all very negative about the process — saying it won’t work. HA HA I think we have them scared to death.
Two of the agents said they had clients interested but would only tell them about the house if we paid them a commission. The rules say NO commissions paid so we can keep the bidding level. ( their buyers lose!)
Awsome Jackie! I just met with a equity seller today and pushed them going this route. The liked the idea a lot because they are trying to “NET” as much as possible. I told the seller I would charge them a fee of $4,500.00. Freinds of family. Older home, needs some work, selling AS-IS and needs cash bueyrs,….BUT…..
I wanted to know what comes with highest bidder sale package you have in cashflow depot? Forms, website use, signs, etc.? 1st time to use the highest bidder sale technique so want to know waht is all included?
Vic
You just get the web site and paperwork at that price. I also give you a jpg file of what my signs look like so you can get them made on your own. The signs are $2-$3 each.
Be a bit concerned that the buyer may not be able to get institutional financing if the house needs work. So unless the price is low enough to attract a cash buyer you may have a hard time selling.
If the house is old and needs work, you will not be able to sell for a retail price
Highest Bidder Sales work great but they will not cure all real estate problems.
Jackie
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