[5-DayForum] 5-day sale in Charlotte

[Bill Effros]

Galina,

As soon as you start fudging on your Round-Robin you guarantee a lower 
final bid than you would get if you played things straight.  Some of the 
real buyers will simply walk away -- and they are right to do so.  You 
are not really prepared to do what you said you would do in the ad, and 
there's no reason for them to give you their best bid if they believe, 
correctly as it turns out, that you plan to get a higher amount based on 
your notion of what your home is "really" worth.  Why would anyone give 
you their best bid under those circumstances?

With regard to the $231,900 bid you got a couple of weeks ago, let me 
refer you to the butcher joke I keep telling on this forum:

A woman goes into a butcher shop and asks the butcher,

  "How much is the porterhouse steak?"

  "$20 a pound."

  "But the butcher down the street is selling it for $10 a pound!"

  "So why don't you buy it from him?"

  "He doesn't have any more."

  "When we don't have any more, we sell it for $5 a pound."


Your house is not worth what a person who can't afford it offers you.  
Your house is only worth what a person who can afford it offers you.

Your home is probably worth in the current market somewhere right around 
$200,000.  If you sold through a real estate broker at $200,000 and paid 
a 6% commission you would have put $188,000 in your pocket.  You were 
offered $186,500 after running a round-robin that almost guaranteed a 
lower final bid than you probably could have obtained.

Bill Effros


Galina Grechka wrote:
> Hi Bill and everybody.
>  
>
> I didn’t have time to update forum on Sunday. The final result is: the 
> highest bid $186,500 and I didn’t accept this bid. Before Round-Robin 
> I told bidders that I would take the highest bid only if it’s 
> acceptable for me.
>
> I will try to briefly describe and analyze my experience with 5-day sale.
>
>    1. On current market my house worth not less than $230,000. I got
>       offer for $231,900 couple weeks ago but buyer wasn’t qualified
>       for financing. When I was researching other ways to sell my
>       house I contacted several companies why buy homes for cash and
>       they offer me $170,000.
>    2. Reading the forum I decided to put initial price for my house
>       $99,500 to be safe for getting 25 calls.
>    3. I got 40 calls by Friday evening, but a lot of people called
>       just under the impression that it’s impossible. For buyers who
>       know the market the price $99,500 for my home looks the same as
>       $1. So I think that majority did understand that this is just a
>       catch.
>    4. I had only 4 groups of people on Saturday and about 10 on
>       Sunday. In addition I allowed couple from Dominican Republic to
>       participate in bidding.
>    5. By 6 PM on Sunday I had 12 bids and 11 of them were over “asking
>       price”.
>    6. Who came to my house? 50% of those who came were serious buyers
>       with the budget for $150,000 house. They carefully inspect my
>       home, asking all possible questions, but at the same time most
>       of them didn’t know if the countertop was granite or corean and
>       if flooring was ceramic tile of vinyl. Basically they had no
>       idea about the value of my home and were ready to pay as much as
>       their budget allows. 25% of visitors perfectly know how much my
>       house worth but probably though that I’m desperate, so were
>       excepting to get a bargain. These groups of visitors were really
>       interesting to know how low I would go. I didn’t want to play
>       games, so I told that I am not sure how low, but absolutely sure
>       that wouldn’t go below 200,000. This made one lady to get really
>       angry and she asked me how I dare to put such a low price from
>       the beginning. I just pointed her to the book.
>    7. I’ve read in forum that often bidders leave fake phone numbers.
>       On my initial bidding sheet all phone numbers were correct and I
>       were able to reach everybody during Round-Robin. Almost all of
>       my “serious buyers” told me during Round-Robin that they would
>       advance their bid, but budget doesn’t allow and they want to be
>       honest about this. I appreciate thear honesty.
>
>  
>
> Basically using the price $99,500 as initial I attracted absolutely 
> improper buyers pool. They were serious buyers but not for my home. If 
> I could change things now I would start with price $149,500. This 
> price still looks very low for my home but it would attract buyers 
> from the right buyer’s pool. Probably and even very likely I wouldn’t 
> get 25 calls until Friday, but the calls I would get would be much 
> more valuable than those 40.
>
>  
>
> Galina
>
>
>
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