Posted by David Krulac on November 30, 2003 at 16:18:17:
things don’t change in a month, and marketing IS using what works and discarding what doesn’t work. Even in the same area, some techniques work better for some people and not well for others. If you try something and it doesn’t work, try something else. And you should always have multiple marketing techniques in use and ready to use. imho.
David Krulac
5 Day Method Buyers - Posted by Dan
Posted by Dan on November 25, 2003 at 18:09:25:
I’m trying out the 5 day method of selling. I’ve read that some people can get peeved when a low low price is advertised. Can anyone tell me how to prevent people from getting upset about the advertised low price?
Thanks
read the book and you will… - Posted by David Krulac
Posted by David Krulac on November 26, 2003 at 14:53:52:
see the power of an auction. “How to sell your house in 5 days” by William Effros is not smoke, mirros or trickery. It is an auction. I went to a foreclosure sale this week where there were 250 houses for sale, it was conducted by the Sheriff, no trick, low minimum prices mostly around $1,000 to $2,000 on houses worth up to $300,000. Nobody accused the Sheriff of trickery.
At an auction you bid as high as you want. You the buyer determine what you will pay. Go to some auctions see how there rum and evene visit places like E-bay.
treat others the way you want to be treated - Posted by Eric ( CA )
Posted by Eric ( CA ) on November 26, 2003 at 01:15:14:
Would you want to get tricked into a bidding frenzy?
Try an auction with a reserve? That’s more honest.
Re: 5 Day Method Buyers - Posted by Greg (Omaha)
Posted by Greg (Omaha) on November 25, 2003 at 21:31:00:
I recently used a variation. I didn’t list a price at all (I wasn’t comfortable advertising a low price) just said “Make Best Offer” and a deadline. Advertised it for 12 days (Wed - following Sun) instead of 5. Had them call 24 hour 800#. Got 74 calls, 28 people showed up to the open house (I didn’t talk to anyone before the open house) and I received 8 offers. Accepted a lease option offer and they moved in the following Wednesday (3 days later). I deposited an 8K cashiers check that same day. Great experience.
Re: 5 Day Method Buyers - Posted by David G.
Posted by David G. on November 25, 2003 at 20:13:38:
You can also place in your ad “or best offer” after the price.
That way you are informing your buyers what the starting price is and if you get a better offer, you will accept that one.
David G.
Re: 5 Day Method Buyers - Posted by Rod
Posted by Rod on November 25, 2003 at 19:50:12:
People will get peeved when they want to get peeved. Nothing you can do about that. Find a more honest way to excite buyers and set a deadline.
Sheriff sale is not trickery…it’s an auction… - Posted by Eric (CA)
Posted by Eric (CA) on November 26, 2003 at 20:08:16:
but telling people that the house must sell by sunday and then not selling is lying.
Maybe you should read what the author says about the legality of not selling as promised. Here’s the link http://www.5-daysale.com/faqs.htm. That’s one reason to avoid wasting ad money.
In a regular auction there is often a reserve. But I have yet to see a sheriff auction that promises to sell to the highest bidder. Have you?
A second reason is that most people are not buying through newspaper ads anymore. It would be interesting to see how the 5 day method works in the future.
Re: 5 Day Method Buyers - Posted by Rod
Posted by Rod on November 28, 2003 at 12:02:08:
Greg,
Last question.
I’m sorry but which part of your ad is a credit to the 5 day method? I mean Make Best Offer and a deadline. Advertise for 12 days (Wed - following Sun) instead of 5. Call 24 hour 800#.
Plus you said you didn’t have to talk to anyone before the open house. The whole ad seems to be 100% nodiscount ad.
Re: 5 Day Method Buyers - Posted by Rod
Posted by Rod on November 25, 2003 at 22:43:25:
Is this the highly debated N@D%&^$#%T Selling Method??? Make Best Offer and 12 days. I am low on cash to invest in any selling method right now but since when can ND do lease options?
I’ve been to many auctions in the last 30 years… - Posted by David Krulac
Posted by David Krulac on November 26, 2003 at 21:12:50:
and I’ve seen a whole lot of different things happen.
At a public sale I was the only bidder who showed up because there was a heavy rain storm. The auction was “supposed” to be absolute. I was ready willing and able to buy that house that day at that time and they refused to sell it to me. Another time I went to an absolute auction when the temperature was 8 degrees, only one person showed up, and there was no sale that day. I’ve been to auctions where the seller changed their mind. I’ve been to auctions where the fence post was bidding. I’ve been to auctions where the sale was supposed to be absolute, they promised that “the property would go under the hammer at the highest bid, regardless of the dollar amount.”
Well, guess what it didn’t. Tough toenails.
I’ve used 5-day and I liked it. I wouldn’t use it everytime in every situation, but I think that its a simple quick way to sell a house. In my case we had an MAI appraisal and sold the house for $50,000 more than appraisal. The house was far away, we didn’t want to have it empty over the frigid winter, and one of our stipulations was that the closing had to be within 30 days. We allowed and encouraged home inspections by the buyers.
The bottom line was the buyers were happy with the house, they had been burnt by putting offers in on other houses and losing out to a higher offer. This method assured them of getting a chance for one last offer that they hadn’t gotten before. We got 3 offers for more than $50,000 above appraisal, so we were very pleased and would have been happy with either the second or third bidders offer. So as sellers were were happy. Everybody was happy and we had no negative comments.
I look at it as just another tool in my tool box which is filled to the lid with all kinds of tools. I would use this one tool exclusively, just as I wouldn’t use a ball peen hammer for brain surgery.
And it you don’t like the tool don’t use it.
David Krulac
Central Pennsylvania
P.S. I went to one absolute auction where every bidder had to give the auctioneer $10,000 in cash in order to get a bidding number, I was uncomfortable with that process. One thought that I had, since this stipulation was listed in the newspaper ad, that the auction would be a great place for a couple of thugs with guns to make off with everybody’s $10,000. There were only 7 bidder, I was one, but didn’t get the property. And on top of that the inspection of the proeprty was just prior to the sale. So before you could go inside the house and see it you had to have your $10,000 bidder deposit.
Of course they refunded the $10,000 to the unsucessful 6.
I hate to break the bad news to you guy, but… - Posted by Eric (CA)
Posted by Eric (CA) on November 30, 2003 at 12:27:14:
even the best ad can’t get your house sold. I can come up with compelling ads all day long and pull in hundreds of calls. But its what you do with those callers that makes the deal. Why do you think less than 1% of buyers buy at open houses.
Re: 5 Day Method Buyers - Posted by Greg (Omaha)
Posted by Greg (Omaha) on November 29, 2003 at 14:32:55:
Sorry…I didn’t mean to give the impression it was the ad I was melding…but rather the system as a whole that I use different features from different souces. From an ad perspective I use an ad that has a number of ND’s features (in my case I won’t consider cars and I do offer Lease/Options). To be fair though, ND doesn’t have a monopoly on the ad features they recommend since many are similiar to other “gurus” recommendations. An example is J. Lant’s book “Cash Copy” which was written in 1989 and outlines almost exactly the ND ad philosophy (in my opinion). The reason you see similiar features over and over from various sources is because they work.
From a system stand point I do use the 5 Day method features of the radon test which is critical in my area (if it’s high I pay to have it fixed before hand and I haven’t had one yet that isn’t) and I also pay for a professional home inspection. I make both reports available to potential buyers at my open house.
Again though, along w/ these two sources, I use ideas I have picked up over the years from this site (M. Woolley gets special kudos), B. Bronchick, J. Kaiser, Peter & David, S. Cook, S. Rister, J. Richards, R. Kiyosaki, etc. (I apologize for any I’ve overlooked). By the way, did I mention I was a professional real estate course investor first? This along with my experience as a sales & marketing information VP for a Fortune 500 company has helped me create the system I use today (I promise it will be different a year from now because I’m always learning).
Hope this helps to clarify.
Greg
Duh? - Posted by Eric ( CA)
Posted by Eric ( CA) on November 26, 2003 at 01:09:22:
Just because ND system uses making best offers doesn’t mean it’s limited to price offers. You can include lease optioning as one of your gambits if you wanted to. You have a gun now go find a target and start shooting different kinds of bullets. These bullets are what ND call gambits.
Re: 5 Day Method Buyers - Posted by Greg (Omaha)
Posted by Greg (Omaha) on November 26, 2003 at 24:44:14:
I am familiar with the ND method and used some of the things about it I liked (I’ve also read the 5 Day Method and used some of the things I liked about it). I’m not debating which system is best since my stance is neither was perfect for me.
Like most, as I learn new methods I piece together the things that make the most sense to me, try them and then adapt. I?m not trying to recreate the wheel but to create my own systems that fit my needs and my temperament.
In this example, the top 3 offers were made up of 1 all cash, 1 seller financing, 1 lease option. I then ran the numbers and the lease/option offered the best ROI (if one of the others had a better return I’d have taken it).
The bottom line is regardless of how you go about it, the types of offers you’re willing to consider are entirely up to you and, from my viewpoint, the more the merrier.
Good Luck & Happy Thanksgiving!
Re: 5 Day Method Buyers - Posted by Phong
Posted by Phong on November 26, 2003 at 24:27:10:
Think outside of the box man. Just because somebody gave you a gun, that does not mean shooting is the only thing you can do with it…
Re: I’ve been to many auctions in - Posted by Dave
Posted by Dave on November 26, 2003 at 21:59:19:
I think one can argue the legitamacy of a cancellation when there is a no show, snow storm, family emergency, or a last minute crisis. But what happens when 20-50 buyers accuse you of false advertising? Which brings up another question. I can see spending $50-100 for a 5 day ad for a “chance” to sell, but classified advertising is getting expensive these days. Now add in the fact that most buyers now are searching the web makes the 5 day ad borderline obsolete.
But as you kindly stated, this is just one tool for the investor. It doesn’t work everytime.
Thanks for sharing your story.
Re: 5 Day Method Buyers - Posted by Rod
Posted by Rod on November 26, 2003 at 11:25:45:
Is ND worth it? I mean the 5 day selling method costs only $20 but nodiscount system costs $250?
That’s a little tight for me.
Re: 5 Day Method Buyers - Posted by E.Eka
Posted by E.Eka on November 26, 2003 at 10:38:41:
You’re right! You can gun butt or pistol whip someone with it. If you get really creative, you can throw it at them. HA HA! Just joking…I had to say it!
But you’re right Phong…think out side the box. That’s what creative real estate is about.
Re: I’ve been to many auctions in - Posted by David Krulac
Posted by David Krulac on November 27, 2003 at 08:02:14:
We spent close to $1,000 on ewspaper ads. We advertised in a large daily metro paper and it was around $700. We also advertised in 2 smaller papers.
One of the key elements in this technique and most others is getting the word out. When the 5- Day book was written, the internet was not nearly the force it is today. I would recommend using a web site to sell the house AND using newspaper advertising. The biggest advantages of the web is unlimited space and color photos. But you still need to get the eyes there, so I’d advertise the web address in the newspaper as well as on yard signs, flyers, mailers to neighbors, or whatever other media you use. I have a permenant web site as well as use temporary ones for selling/renting a special property. wwwDOTcentralpennlotsDOTcom
David Krulac
Central Pennsylvania