HBS Question

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  • Hi Jackie: just checking with you to see if we are going to need a mortgage broker on the property the day of the bidding April 15, 2017? Do we have a real estate attorney reach out to the highest bidder in 24 hours to sign the agreement or the day of the bidding? Will a document package be recommended as well as per your book HBS? Also since we are accepting bids in the afternoon at the property, I sense we should hold the bidding there as well, is that correct? thank you

    abe eiland

    HI Abe

    I doubt that you’ll need a mortgage broker. You want CASH BUYERS!
    What are the numbers on this one? what’s your option price? what do you think it is worth?

    As far as a document package, for land, I would recommend providing a survey for sure. They need to know the boundaries and if there are any easements. If this is a residential building lot, you may get prices on impact fees too. Impact fees are the costs to hook up to the municipal water, electricity and sewer systems. If these things are already on the property, you need to provide proof.

    Have the contract ready to sign as soon as the round robin part of the Highest Bidder Sale is over. You can meet the
    high bidder someplace to get the contract signed (two copies) and collect the non-refundable earnest money.

    Bidders fill out their bid on a bid sheet at the property. After the open house, you call them all back to tell them what the high bid is and ask if they want to increase their bid. You don’t do a live auction at the property because all bidders may not be present.


    I hope someone can help me…I did my first HBS open house this weekend. It went really well considering we got 50 people coming through the door. We did get six bidders unfortunately, we fell pretty short of what the owner wanted. We do know and understand our mistakes and will rectify them at the next sale.
    My question is this…there are a lot RE agents/brokers (most are very pushy) that pass through the open house and call my number, they think I am the actual owner. When I tell them that I am not, they are still very aggressive. Is there a certain way to handle them or should I write something on my flyer, blog or website that states something otherwise? I hope this question makes sense and I can get some kind of help…thanks!


    You really need a lot more people to come through the door to get about 20 bids. Twenty bids will cause the price to go up and up. The main reasons for not getting enough people through the door are:

    1. not a low enough starting bid compared to the current value of the property
    2. not enough signs and other marketing the week prior to the open house
    3. not such a great neighborhood or high crime area (this can be compensated for with a super low starting bid and sales price)

    Tell the pushy real estate agents you are assisting the owner with the open house.

    Usually you don’t get many agents at a HBS open house. I put in my flyers that we do NOT pay a real estate commission. That keeps the agents away unless they are a buyer’s agent, then the buyer pays their commission.

    Hi Jackie,

    I have a few more questions. All of our bids were cash offers, how do we get retail buyers to put bids in and know that they are legit? Also, what if they needed time to get pre-approved? How does this work if the house is to be sold Sunday night? Are most of your deals cash?



    CASH IS KING! Especially for a Highest Bidder Sale. You do NOT want to be stuck with a property because your HBS winner’s financing does not come through. You ensure the winner will have the money by getting them to sign the contract with a NON-REFUNDABLE earnest money.

    If you want Retail Buyers, you only want ones who are pre-approved for a loan higher than the price of the house you are selling from a reputed, and verifiable bank.

    Use Zillow to get the attention of retail buyers; it works almost like realtor.com, and you get lots of exposure. Clearly state there is a Buyer’s premium to convey to the Realtors what HBS is about. It means, they can bring in their pre-approved buyers, but the final bidding price is NET TO THE SELLER, and the realtor adds on his/her commission, like he/she would in an auction.

    You can also use a FLAT RATE MLS Listing Service to get even wider exposure. These usually cost $99 +.

    In your write-up for Zillow, or MLS, state you are doing a HIGHEST BIDDER SALE, with an Open House, with the realtor fees stipulation.

    If you are doing a HBS targeted to Retail Buyers have a mortgage broker at the open houses to qualify them.

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