Sell your home in 5 days - AUCTION - Posted by CS

import · December 18, 2004, 10:28pm

Posted by David Krulac on December 23, 2004 at 21:48:52:

specifically require a license to sell your own property. i know of none but of course I don’t know the laws in all 50 states, perhaps you could enlighten us all.

import · December 18, 2004, 10:28pm

Posted by CS on December 18, 2004 at 23:28:36:

Has anyone used the “Sell your home in 5 days” Auction method and does it work?

Thanks

import · December 22, 2004, 3:39am

Re: Sell your home in 5 days - AUCTION - Posted by Rob

Posted by Rob on December 22, 2004 at 04:39:36:

Check this out… http://www.5-daysale.com/faqs.htm

The 5 day method is trying to reinvent itself but is stuck with the 5 day branding. They talk about 5 day sale but then talks about preparing in the weeks before the 5 day? So it’s not really 5 days but maybe 20-40 days now.

Click on the the product and resource links and you’ll see that the 5 day is becoming obsolete which is why they’re selling different packages for hundreds of dollars. There are a couple other products on the market that are better. I’m not going to mention any names but search CREonline archive for past discussions.

There is one particular product that many of the 5 day users don’t like but looks to me that the 5 day program is becoming more and more like the competition.

import · December 19, 2004, 6:34pm

Re: Sell your home in 5 days - AUCTION - Posted by Hank

Posted by Hank on December 19, 2004 at 19:34:42:

It really does work! I had purchased a money pit down in St Pete, FL. I overextended myself and had to unload fast. Unfortunately, when dogs smell blood…they wait…for…the…right…moment…then… I saw the writing on the wall, realtors, lenders, potential buyers just waited me out figuring that if they waited long enough, they could come in and steal my house. I went through two realtors in six months, neither could do anything for me. I was in a hurry, they were not. Out of despiration, I tried the auction plan and amazingly it worked. True story.

Don’t think that Real Estate investing is a guaranteed gateway to riches. Believe me, you can loose, big time. Be very careful because EVERYONE you come across in this business- realtors, lenders, appraisers, construction people, all have their hand out and are ready to take your money. Please be very careful.

import · December 19, 2004, 3:47pm

Re: Sell your home in 5 days - AUCTION - Posted by Kristine-CA

Posted by Kristine-CA on December 19, 2004 at 16:47:10:

You can read much about this book and other auction methods and suggestions in the archives on this board. You might want to try searching under: 5 day auction, 5 day method, auction, Effros.

The problem I have with the technique is that it suggests that you build up auction frenzy (good idea) by stating that the house will be sold on a certain date, thereby creating the illusion of an absolute auction. No such thing is actually happening. (bad idea)

I have thought about adapting the method so that it better meets my thoughts about fair dealings. But I work in hot market and have not yet needed to try it. That being said, hot markets can be a good place for an auction, as evidenced by our county’s last tax sale in November–vacant lots similar to those that I sold a few months ago for 10K going for 50K at the county’s tax sale held at bid4assets.com.

Those who know me would probably say I’m not the right person to ask about how to sell for the best price. I tend to set my value and leave it at that. I just sold a property last month and made what I thought was pretty good money for a flip (over 35K–no rehab). My buyer already sold it retail for a 40K profit. Obviously I leave some on the table for everyone! No wonder those buyers keep calling me!

So, take my opinions about the auction idea with a grain of salt…Kristine

import · December 19, 2004, 6:35am

Re: Sell your home in 5 days - AUCTION - Posted by David Krulac

Posted by David Krulac on December 19, 2004 at 07:35:01:

Yes, I used the mehtod and sold a house for $50,000 more than MAI apprasisal, had 3 offers cash settle within 30 days. Here’s what I said in 1999:

16 of 16 people found the following review helpful:

Original, unique, interesting and profitable, November 17, 1999
Reviewer: David Krulac (Mechanicsburg, Pa USA) - See all my reviews

We bought and read the Effros book, it is unique. I have read probably 200 real estate books and his 5 day method is different and effective. You have to get over the mental block of starting off low in your asking price. We modified the technique to serve our purposes. We employed a MAI (Member of Appraisal Institute) appraisal done on the property. After physically preparing the house by painting, cleaning, and some new flooring, ads were placed in the newspaper. We received offers above asking price and settled within 30 days. Everybody was happy. We have William Effros to thank for the unique idea, and ispiration of his book for our quick sale above asking price. Thank you, sir.

import · December 19, 2004, 4:02pm

repeat business is - Posted by David Krulac

Posted by David Krulac on December 19, 2004 at 17:02:53:

a part of your sucessful business plan. If you were to squeeze every last dime out of the deal, then there would be no more follow on calls. I have a house for sale for $19,900 now and 2 lots over 2.5 acres each for sale less than $30K. Somebody is going to make some money and I will be happy for them.

re: 5 day method, it says in the ad, on the flyer and ij the book, that the property will for the “best reasonable offer”. To me that it clear that a $3 million house is NOT being sold for $1; as that would be UN-reasonable. By stating that the offer must be the best resonable offer, to me that states that it will not be sold to just the highest offer which could be $1.

I hired an auctioner to sell a house of mine. The date is set 2 months in advance and there is a sign and advertising. Well the day of the sale there is this trmendous cold snap and the temperature was below ZERO. There was no heat in the house so it was below zero too. Only one brave soul showed up. I didn’t sell the house that day. But if I had advertised absolute and only one person showed up I would have to sell for $1. But if I advertised “best reasonable offer”, I don’t think I would sell for $1 since $1 is not reasonable.

I think the hardest part is the low starting price. Effros recomends a low starting price, which I think most people can’t bring themselves to do.

import · December 20, 2004, 10:27am

Re: Sell your home in 5 days - AUCTION - Posted by David MacGown

Posted by David MacGown on December 20, 2004 at 11:27:47:

David,
Do you need a Real estate Auctioneers license to use this method? Thank You.

import · December 19, 2004, 8:41pm

Re: Sell your home in 5 days - AUCTION - Posted by jafon2k

Posted by jafon2k on December 19, 2004 at 21:41:54:

Were the persons you sold to be considered retail buyers requiring conventional financing or were they cash buyers?

I can only imagine there would be a hitch if the auction price was beyond that of an appraised price and the buyers had to get a conventional mortgage. Please enlighten me?

How did you make use of the MAI appraisal?
Did you distribute it to the potential buyers?

import · December 20, 2004, 10:47am

Re: Sell your home in 5 days - AUCTION - Posted by David Krulac

Posted by David Krulac on December 20, 2004 at 11:47:10:

no you are selling your own property, no license needed

import · December 19, 2004, 9:36pm

Re: Sell your home in 5 days - AUCTION - Posted by David Krulac

Posted by David Krulac on December 19, 2004 at 22:36:43:

we didn’t allow a mortgage contigency in the contract, all bidders had to settle within 30 days by either cash or mortgage.
these were retail buyers who were to be owner occupants.
there is no problem getting a conventional mortgage when the sale price exceeds the appraisal if the buyer doesn’t care and makes up the difference in cash down payment.
all the buyers were strong buyers and with the 30 days setlement and no contingencies, the process weeded out the weaker buyers.
we didn’t carry any of the financing and provided no seller help.
we allowed any and all inspections at buyer costs with a no repairs clause. The buyer did uncover something that was a hidden defect that we were unaware of and we paid to correct that problem.
we provided the appraisal to the buyers and used that as the starting point. it was conservative and the market was growing at the time. appraisals have a hard time keeping up and are outdated before written in a growing market. The faster the market is growing the faster the apprasial is obsolete.
the house was in great shape in a growing market. We saved any commission, and were able to sell quickly for all cash at a price $50,000 over appraisal, that about says it all.

import · December 21, 2004, 9:09pm

5 day sale. Dangerous advice - Posted by Mike

Posted by Mike on December 21, 2004 at 22:09:42:

David, I know you have good intentions by helping newbies but in several states now, an auctioneer license is necessary for investors.

If you purchase a property with the intention of reselling/auctioning in a years time, licensing is needed.

Other than that, there’s no license needed on personal residence.

Just something to think about.