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I have a property that I’d like to sell. I foolishly listed it with an agent, who had it on the MLS for about 34 days. We had 22 showings in an area where the average DOM for similar houses has been 35 days. Since August 1st, properties going into contract has slowed considerably. I have good comps at $174500; list price was $149900.
The listing was mutually withdrawn (I was a pain in the butt to the agent) and now I’d like to try a HBS.
The property is move in condition. An owner-occupant would probably update the kitchen with new cabinets and countertops, and replace the flooring in two rooms and a stairwell. An investor would rent it as is for $975/mth.
I haven’t had an inspection. There are some minor maintenance items that will amount to less than $250.
I plan to start the auction at $99500. At that price I would be on par with homes in the area that need full rehabs. It will be a reserve auction.
I have seen only 2 HBS’ in my area in the 11 years I’ve been in real estate, so I’m a bit of a pioneer with this thing.
I need to decide quickly when to have the HBS – Sept 20-21 or Sept 27-28. Is 1 week really enough time to pull it off?
Do you do a mini MLS listing for the auction as part of your advertising and marketing?
I welcome any help from members in the Midwest! Let me know if you’re anywhere near Central Ohio and are willing to help me out.
Thanks,
Deb Krantz
Columbus, OhioHI Deb
Get that inspection done so you can have it available during the Open house. Also gather up info about recent sales/comps
Order your signs locally or at http://www.WitnessDesigns.com
If you can get the signs in a couple of days the 20th will work.
But I think it would be better to schedule it for the weekend of the 27th. That will give you more time to get the signs, get flyers in to the neighborhood, send out a press release (or2). You need to start posting on craiglist daily about 1 week before the open house – not sooner.
If there is any kind of local radio show, try to get on it to talk about the upcoming Highest Bidder Sale and why it is a great way to sell and buy a property.
You should also line up a mortgage broker to be at the property both days to qualify buyers on the spot.
I have no doubt that this will sell for $170k+
Good decision to ditch the agent and do the Highest Bidder Sale. You will make much more money.
WARNING!!!! You will be hooked on selling this way after you do just one.
I checked my numbers again and came up with an average sale price under 1/2 mile of $142210, with a range of $98450 to $179980. All comps are from 7/1/14 and later.
I’m charged up about this possibility. Working now on planning chart and scheduling. I have a helper for placing craigslist ads on a rotating cycle. I might even get a blessing from the neighborhood sign police.
I appreciate the referral for signs. I’ve listened to the coaching calls and looked through Jackie’s and Effros’ books but I don’t see any reference to what to expect to spend on signs. One online sign company has a cost of $2.50/ea for directional signs (if I buy a lot of them in one order) and $199 for a large yard sign. Does that sound about right?
Thanks.
DebI’m seeing examples in the file vault of directional sugns, but I don’t see an example of the yard sign that will go in front of the house. Do I use the same sign, only larger, and put a phone number on a FSBO sign in the yard? The examples of the directional signs have the website on the signs but not a phone number.
Thanks Don and John.
A new wrinkle has come up that I’d like your input
I spoke to a realtor in Florida who occasionally holds a Best Bidder sale. He uses the material from Greg Luther, a broker coincidentally from Columbus who claims to have created the concept.
This realtor felt that I would need either a real estate license or an auctioneers license to hold this sale.
This was in the same conversation that he said he feels these sales are similar to an ebay auction.
In any case I’d like to get your thoughts on this being a potential problem.
He went on to say that he didn’t think these sales work well when the seller is holding the auction, that buyers will resist bidding against the seller’s reserve price. He felt his approach was better, in that he is an “independent” agent holding the sale, and bidders will be more forthcoming about bidding with him.
Again in the same conversation he explained that he gets paid a commission by the seller, coincidentally 3% of the selling price. So he benefits when the price gets bid up, yet he remains impartial to the outcome. I know that is a huge contradiction, but I’m wondering if anyone has that experience, how to overcome that objection with buyers.
Thanks,
DebI’m rolling out the marketing for the Best Bidder Sale next weekend. I wondered if anyone has created a FSBO MLS listing? If so, was it valuable, and how much should I expect to spend? I’m creating a Postlet to use on Craigslist and with real estate agents. I do expect some reaction from agents – hopefully they will get past the “you didn’t list with me” anger and bring their buyers. Agents are very active in this area and I don’t think it wise that I ignore them.
Here’s my marketing plan, in no particular order:
Local large newspaper print and web ad
local small paper print and web ad
MLS listing (?)
Yard, directional and open house signs
Sign spinners at key intersections
Zillow
Trulia
Facebook event
Facebook group posts (with permission)
Postlet
local REIA website
meet-up announcement with RE groups (with permission)
post with neighborhood associations (with permission)Is there anything that I’m obviously missing?
I put out the yard sign and had someone come up and ask about it before I even put the last stake in the ground. I hope that’s a good signal of things to come.
Thanks,
Deb
614-571-6573 (cell and text)I hate to keep laboring over this issue, but I am in a pissing match right now with a realtor who does direct MLS listings for about $400. I explained that I would need to be very clear in the listing for the Best Bidder Sale that a buyer’s agent commission was not going to be included in the purchase price, and a buyer represented by an agent would have to pay that agent separately. I got a swift retort that “you are dreaming in full vivid color if you think any agent would participate. Buyer agents bring buyers to a deal because they know how much they are getting paid”.
I fear this is what I will be up against. I just learned that buyer’s agents don’t have to disclose how and how much they are getting paid.
Anyway, does anyone have experience working with a buyer agent that they can share with me?
Please call me as I need to make some quick decisions on this MLS listing.
Thanks,
Deb Krantz
Columbus, Ohio
614-571-6573Deb,
Two points. The first from a prior post. Jackie passes out flyers in the general neighborhood. I do Every Door Direct Mail. I would make the flyer with a nice color picture of the house as Jackie does in her HBS material.Second point. Who cares about the Realtor. If they bring a buyer great. You are not basing your success of the HBS on them. If they add to the party great, if not no big deal.
Don Wede
Deb
Take a deep breath!
STOP listening to all these real estate agents who are trying to get a piece of your pie.
I have done hundreds and hundreds of HBS.
I also went to auctioneering school so I know the rules for that too. Because you are not “representating the seller” you do not need to be an auctioneer. My teacher was the president of the National Auctioneers Association so I got top knotch training.
Anyone can sell their own house with an auction – no license required.
A HBS is completely different from an auction. completely different.
You control this property with an option, or it is your property, so you can sell it with an HBS.
Don it right, what they are telling you in total BS.
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