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An attendee at the Panama Retreat has a house he would like to sell with a Highest Bidder Sale as soon as possible (February)
He would like to get help from other cashflowdepot members, preferably from some who have done a Highest Bidder Sale.
This is the property
http://www.zillow.com/homedetails/295-W-Park-Ln-Lake-Alfred-FL-33850/55134283_zpid/
This is not a distressed sell. The house is in great condition and he would like to sell to a retail buyer.
Let me know if you’re interested.
I’m curious how this would work for a retail buyer. Is the seller considering owner finance? If not- why not list on mls and do a HBS that way?
It seems it would have way more eyes on it with all the realtors in the area looking for inventory.
My understanding for HBS is that they are best for distressed or owner financed opportunities. Would like to know how they work for retail as that is what I do for my day job (realtor.)
ThanksRealtor could take 6 months or more to sell.
Rarely does the listing agent do anything except put it on MLS then hope that
another agent finds a buyer. Listing agent usually does absolutely nothing to make the house sell faster.With a highest bidder sale, you do 7 days of aggressive marketing, a 2 day open house, and sell the house on the 9th day.
six months vs 9 days — big difference.
Jackie is absolutely right. A listing agent/realtor does nothing but list the property and twiddle his/her thumbs waiting for a buyers’ agent to come up with a buyer. This can delay everything. The way the market is turning, and slowing down, it may take some time to sell.
As for putting it on the MLS, anybody doing a Highest Bidder Sale can use a $200 service to do it. With HBS, the marketing is focused, aggressive, and result oriented because of the vested interest of the investor. The more the outreach through marketing in the 7, or so days, the more he miner of boots through the door in the day of the HBS. As long as the Seller understands there is a reasonable strike price, and the final auction price is not binding. The investor is in control of the deal on behalf of the Seller. It is a partnership. If the property is cheap, it is better to buy it and do an HBS, or get another investor in as an equity partner to buy it, and you do the HBS, and split the profit after expenses.
I can assure you- when I list a property I don’t just twiddle my thumbs and wait for a buyer. Maybe that’s why I get business. But I didn’t suggest he hire a realtor, I suggested he list on mls which obviously can be done through a flat fee broker. Why not do both and drum up the most business for a retail buyer who will most likely need to obtain financing?
In this scenario, what is the spread for the person doing the HBS? Is he proposing a fee for the service (say $3K) or a share of the profit over his strike price?
I ask this as I am trying to work it into my day job- but the only way I can think to do that is by putting an option on the property at a discounted price and then doing a HBS and either keeping or splitting the profit. It is my impression that this guy is not interested in discounting the property.I would also be interested in driving down there and doing this if there was money in it for me before I get in the car.
Thanks
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