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When you’re talking to a seller about doing a highest bidder sale but they are stuck on a price that you know is too high, you have these choices:
1. walk away. Don’t waste your time with an unrealistic seller
2. try to convince them to start with a lower option strike price and explain that you will let the market ( buyers) determine what the property is worth. With the lower strike price, you will probably need to agree that they get the first 80% of sales price then you split profits after that. Or you could even do a HBS for a flat fee. Advertise a really low starting bid price ( about 50% of true market value) to get a LOT of bidder to the house. When the seller see all the people who came to the property and bid, they will know that you did everything you could to get the price up.
If the seller is WAY off base on what their property is worth, it is better to just walk away. Follow up with them 3-6 months later to see if they are more realistic and motivated.
I got a call yesterday from a seller that has a LOT for sale on one of the islands in Bocas del Toro Panama. They asked if I could help sell it for them. They are asking $310,000 but said they will sell for $250,000 for a fast sale. Yet, this price is still about $150,000 over the true market value. And it is not even titled land. PASS!
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