[5-DayForum] A couple of ad questions
Bill Effros
bill at effros.com
Sat Oct 27 16:32:55 EDT 2007
Palantine (?)
The ability to sell a home to the high bidder does not rest solely with
the seller. The seller's acceptance of the bid does not ensure a sale;
it's just the starting point of the second phase.
5 Day Sellers who properly run 5-Day Sales know more about the market
for their home on the Monday morning after the sale than anyone else in
the world.
Almost all 5 Day Sellers know more about the market value of their home
by the Friday evening before their inspection than anyone else in the world.
The question is only what the sellers are going to do with this knowledge.
My recommendation is that sellers cancel their sales on Friday evening
if they are not prepared to sell their homes to the high bidder Sunday
night. Always cancel if you fail to get 25 targeted responses. Make
sure all of your responses come only from targeted advertising. If you
don't like what you hear from people who respond, cancel. There is no
shame in this.
But if you do get 25 Calls by Friday night, and you do have a 2 day
inspection, and you conduct a round-robin in which you tell participants
you are going to offer your home to the high bidder for the amount bid,
you must be prepared to go through with it.
Now if the high bid is not acceptable to the bank, you can try to
negotiate with the bank or with the buyer. Maybe no satisfactory deal
can be struck, and your home won't be sold to the high bidder. But
maybe you can work something out. You have obligated yourself only to
try to get beyond the second phase of the home sale with the bidder who
bid the most Sunday night.
Most 5-Day Sellers who refused the high bid a year ago are worse off
today than they were then. I get calls every day from people asking me
how they can now get the bid they refused. Few sellers who overpaid or
over mortgaged their homes can find renters who will pay 100% of the
carrying charges, so they are losing money while the value of their
property continues to plummet--and they have no flexibility until the
rental period ends.
I agree with most of the rest of your analysis. The times they have
a-changed. It's been like a giant game of Hot Potato, and the people
currently holding the potatoes are the losers of the game if they must
sell now. There is no way to know how long it will be before home
values get back to the pre-crisis level--there will have to be a lot
inflation in this country, first, and its an open question how much
inflation will be tolerated by the entire population to benefit the
current holders of the hot potatoes.
The 5-Day Method, properly used, will allow you to understand market
conditions for your home in 5 Days. This is really true, and valuations
derived in 5-Day Sales by either Friday or Sunday have proved stunningly
accurate. If you're in trouble and you can't sell; pull the plug on
Friday. If you've got to sell, play fair, offer your home to the high
bidder Sunday night, and see if you can work out a fair deal with all
the parties interested in consummating a deal.
Bill Effros
palatine1 wrote:
> Bill, I know that you say you should always be prepared to accept the
> high bid from a properly set up auction. But these days there are a
> lot of people anxious to sell their house who still owe a lot on it.
> They're willing to take a big drop in price, but sometimes an auction
> brings in far less than they owe. They may not be able to afford
> bringing cash to the closing, even if they wanted to. They realize
> they would be better off renting their property for a year or two
> until the the market improves, _something they had no way of knowing
> for certain before the auction_. If properly set up, the auction did
> exactly what it was supposed to do: show them the market price. But I
> can understand why some people would find it impossible to accept the
> highest bid in some circumstances, through no fault of their own.
>
> There have always been market ups and downs. But the situation has
> indeed been unique in some parts of the country in that entire
> segments of the buying public have essentially disappeared. In some
> places, the only buyers out there are first-time home buyers, because
> everyone else feels locked in to their own house. First time
> buyers generally have little money for down payments, and a shorter
> credit record. And the credit tightening has made it even worse.
> Unless you have a property that fits this niche, you're out of luck if
> you live in some of these areas. You have to face the fact that you
> might owe considerably more than an auction or an agent is going to
> bring you. But you don't know for sure until you try. And it's these
> people who will face the prospect of having to turn down the highest bid.
>
>
>
>
> ----- Original Message -----
> *From:* Bill Effros <mailto:bill at effros.com>
> *To:* How To Sell Your Home in 5-Days
> <mailto:5-dayforum at mailman.howtosellyourhomein5days.com>
> *Sent:* Friday, October 26, 2007 4:09 PM
> *Subject:* Re: [5-DayForum] A couple of ad questions
>
> Lynn,
>
> People try different things on Craigslist and different things
> seem to work in different places. I just run the standard 5-Day
> Ad format, and that has worked very well for me.
>
> The Open House category did not exist when I first ran 5-Day
> Sales, so I have always run in the homes for sale category. I
> don't think the Open House category conveys the sense of urgency
> required, and the process is really much more than an open house.
>
> Around here they don't force you into price categories, although I
> would guess people are dipping into lower categories than they
> thought they would ever look to see if sellers have acknowledged
> the falling market. Good 5-Day Ads are so far out of whack they
> attract people no matter where they are located. A call or an
> email is required -- you can get 25 by Friday night if you convey
> the idea that you are really going to sell to the high bidder.
>
> Bill Effros
>
>
>
> Lynn Baskfield wrote:
>>
>> When placing ads on sites such as Craigslist, do you put your
>> starting price in the headline area where they ask for price? Or
>> do you leave the price blank and put 5-day sale or Auctin in the
>> headline?
>>
>> Also, the real estate section main newspaper in Las Vegas, the
>> Review Journal, has price range categories for homes for sale.
>> Rather than choose the starting price category of 174,500 for our
>> 5-day, we opted to use the Open House category. Any thoughts?
>>
>> May your spirit dance,
>>
>> Lynn
>>
>> Lynn Baskfield
>>
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>>
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>>
>>
>>
>>
>> Photo by Jim Earley <http://www.trailblazercoaching.com/>
>>
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>>
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