Posted by Houserookie on May 13, 2002 at 10:29:24:
You may have to search back a few months. I believe the guy that authored this method was here to answer questions and defend himself from skeptics and know-it-all board members.
Try 2000 archive…
Anyone tried round robbin auctions? - Posted by Ben (FL)
Posted by Ben (FL) on May 10, 2002 at 11:41:12:
I’ve got this house that I am just having the worst time selling.
It’s in an older neighborhood where the houses were built in the 30s, 40s, and 50s. The neighborhood has been a desirable area for the past 10 to 20 years, and there’s about a 50-50 mix of houses that have been renovated and ones that have not since they were built. My house has been renovated.
Comps. place the value firmly in the $105k-$115k range. I have been advertising the way I should be, placed signs were they should be, offered free new 27" color TV on lease/purchase, rent-to-own, no qualfying owner financing - I’ve tried just about every kind of ad I could find. I even sent fliers to all the renters within an 8 block radius, and got no response.
I even tried briefly lowering the price to $99000 and still nothing. Three separate times soneone has said “I love it, I want it” but changed their mind before I could get the money. Since this one has been for sale, I’ve sold 5 other houses, so I don’t think the problem is me…maybe.
Has anyone tried a round robbin auction before? Most of the ones I’ve heard of were for cash sales, not owner financing. How did it turn out? Did you go by “the book”?
What worked and what didn’t?
Any other ideas are welcome, too.
Re: Anyone tried round robbin auctions? - Posted by Mike Daly (GA)
Posted by Mike Daly (GA) on May 11, 2002 at 05:13:43:
Yes, I once tried the technique described in the book “How to sell your home in 5 days.” The basic concept is you advertise a ridiculously low “starting bid” price, have an open house and then do round-robbin bidding over the phone. The winning bid from the auction was lower than I was willing to go, so I kept it on the market and eventually sold it for higher as an L/O.
The thing is if you’re willing to sell owner financing you don’t want to disclose the terms (especially the deposit) because that will keep some people from bidding, and you want as many people to bid as possible.
The good thing about it is it will draw a lot of attention, and you will meet many buyers – I had a number of people who were looking for something in a cheaper price range, but indicated they could put 10, 20 or even 40K down!
The bad thing is if it doesn’t sell from the auction, people will remember the low price you advertised which makes it somewhat harder to sell for higher later.
I wouldn’t recommend using this method in most cases, because I think you can normally sell for more thru standard marketing methods. But for houses that are tough to move I’d say it’s a good solution if you can afford to sell for somewhat less than market value.
Re: Anyone tried round robbin auctions? - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on May 10, 2002 at 16:45:35:
Ben–(FL)---------------
Never tried an auction format.
Could you call those three “I love it” people and ask them what caused them to change their minds? Maybe there is some reputation issue with the location and they were talked out of the purchase by people they know. If something like that were happening, you could try to innoculate any more lookers with some sales pitch.
I like the fliers to apartments. Could you pretty easily get a mailing list of the nearby single family to 4-unit properties that are not owner-occupied? And do a postcard mailing to the occupants of same?
Do you have a big sign out front with fliers? If you are not on a major street, could you have a “house for sale” sign on nearby major streets with arrows directing people to your property.
Good Investing********Ron Starr*************
Re: Anyone tried round robbin auctions? - Posted by Houserookie
Posted by Houserookie on May 11, 2002 at 12:35:38:
There is a method called NoDiscount home selling that teaches both sellers and investors how to sell real estate. The author took what is taught on Bill Effros how to sell your home in five days, and add some creative techniques.
You basically advertise, “Make Best Offer, Owner Financing Available, with a deadline attached.”
Search the archive for more info and other discussions.
Austin
Re: Anyone tried round robbin auctions? - Posted by Mike Daly (GA)
Posted by Mike Daly (GA) on May 13, 2002 at 07:23:02:
Thanks for the info – I plan to check that out. Do you still have a link to a discussion on this? I’m searching the archives but haven’t found it yet.
Re: Anyone tried round robbin auctions? - Posted by Houserookie
Posted by Houserookie on May 14, 2002 at 21:49:46:
Hi Mike,
Sorry I didn’t get back to you sooner. I am currently away from my home in Minneapolis. But I did receive your email and yes I did join them. I paid something like $77 almost two years ago. Based on their site the price has gone up but it seems like you’re also getting a little more too.
Let me know what you think of the program…
Austin
Austin
“Still can’t find anything on the “No Discount” people – their program looks
pretty good and the price seems reasonable. Looked at the BBB online and
couldn’t find them. Have you actually signed up with them? I just want to
make sure they’re a reputable company before I spend any money on them.”