I have a house that I need to move, (dont we all :rolleyes ) it just came on the market.
I was considering doing it via the 5 dayauction method. I watched a video clip on it (cant remember the speaker) I do remember him saying it may not work in a slow market. Anyone got any feedback on using this method in the last 6 months?
Do you have all the buyers sign in and bid on one sheet or do they all turn in seperate bids? Also how do you handle a reserve price?
Think of an auction as a marketing tool, when used correctly can be very successful. It gets people interested in the property and inside the property.
Like anything, there is no guarantee it will work, but it will always get your property noticed and that’s half the battle.
There are different ways to handle bidding. You can automate it by doing it online or take interested buyers name and number and do a round-robin by calling each until you identify the highest bidder.
The reserve is something you don’t disclose to anyone, but you let your buyers know that you have the right to reject the highest bid if it doesn’t meet your reserve.
I have thought about this method myself. I have 2 properties that I am interested in that this might work well for. One can be had well below market price and an auction could quickly get FMV for it rather than either waiting around for it to sell at FMV or selling fast and low for a quicker buck. Another after I factor in what the seller wants for it versus what it might get selling traditionally there might not be enough spread. It’s a beautiful house though and I think getting people inside, interested, and competitive will push it up into the range I need to get a profitable price.