[5-DayForum] Keep buyer believing in low price
Bill Effros
bill at effros.com
Sat Sep 1 11:27:07 EDT 2007
Terry,
I agree with most of what you say.
You have been on this list long enough to have noticed that people who
turn down the high bid after running their 5-Day Sales don't come back
to tell us they have found some other method that has enabled them to
get the price they thought they were going to get before running the
5-Day Sale.
Some come back to tell us they have negotiated a higher price with
buyers, but this is not a reliable technique, and it is my position that
if you start at the right price, and get 25 responses from targeted
buyers, and tell them you are really going to sell the home for the high
bid...you will get a higher bid using the Method than you will get
fudging the Method and trying to renegotiate later.
To the extent people are using the 5-Day Method only to get appraisals
on their homes, I think they hurt the real sellers by poisoning the well
of real buyers.
5-Day Sellers were reporting problems in the housing market long before
the media, the markets, and the Federal Reserve Bank figured it out.
People refused to sell their homes because they said "I didn't get a
high enough bid." My answer then, and my answer now is that if you run
this Method properly you will get the high end of the current market
value of your home, and that if you are not prepared to take what you
can get you should try to sell your home using some other method before
trying this one.
Bill Effros
Terry Wigfield wrote:
>
> Rosemarie,
>
>
>
> You will find many different thoughts about this subject on the forum.
> I don't know if I right, but I'll give you my 2 cents for what it is
> worth. Bill doesn't worry about it because he always sells for highest
> bid. The 5 Day Sale method works because you bring all the buyers
> together on one weekend and let them bid it to the FMV. The trick is
> naturally getting all the buyers together on that one weekend. The 5
> Day Sale does this by implying that the house may be sold for a price
> much below market value. This gets everybody interested. If you knew
> of a house that you could buy for ½ its value, you would buy and
> resell. So this is what brings them in. From what I've read on forum,
> it is imperative to keep the buyers thinking you will sell for a low
> price. Usually the price doesn't really start going up until the round
> robin bidding begins. So you have a lot of people thinking they are
> getting something for nothing. Now they start to picture themselves in
> the house and begin to fall in love with home. They have all day Sat
> and Sun to believe they may get a steal. Those who come across as
> wanting or expecting a certain price usually end up with low bids. The
> buyers know you are not going to sell for a low price. They lose
> interest and never begin the dreaming.
>
>
>
> Now keeping in mind that it is very important to keep the buyer
> believing that they may get a steal. If they don't get a steal it
> won't be because of you, it will be because somebody else is willing
> to pay more. As Bill states in book, you want the buyers to bid
> against each other, not bidding against your acceptable price.
>
>
>
> But for those of us who don't have 100% faith yet, we want a way out,
> I suggest the following. First I don't believe it's that big of a deal
> because the buyers have not suffered any damages. Individuals are not
> held to the same standards as businesses or realtors. I just don't
> believe it would amount to much.
>
>
>
> There are some things you may do to reduce your liability. First in
> the ad I plan to use "TO BE SOLD TO HIGHEST BIDDER" as opposed to
> "WILL BE SOLD...." I believe the word "will" is more definitive than
> the word "to". To means "intends to". "Will" means it is going to
> happen. Does that make sense to anybody other than me? I don't think
> this small difference will change the impression to buyer that they
> may get a steal.
>
>
>
> At the open house the buyers will be banging you to get a price you
> want, they will want to know what you're up to, are you serious? They
> will really be feeling you out to determine if you're serious. When
> asked, I reply, "I really want to sell this home, I'm going to sell to
> the highest bidder Sunday night". When pressed answer, "I really need
> to sell this home Sunday night". Now you haven't said anything locking
> you into selling. Just that you want to, you need to. This is probably
> the truth, you do want to sell and probably need to. They may think
> you are desperate. You want them to. But you haven't told them your
> desperate, just wanting to sell using the 5 Day Sale. If you want to
> take it a little further or be more convincing, you could say, "If I
> don't sell to the highest bidder Sunday night I'll give him $100. The
> $100 may be worth it for good will or to clear your conscience.
> Secondly, if the high bid is below the mortgage amount, you could ask
> bank if they will accept that as full payment, if not tell them the
> bank won't release title for that amount. Nobody wants a house if they
> can't get a clear title.
>
>
>
> While we may feel we're being deceitful and maybe we are, this is
> nothing compared to the sellers who hide known defects. As a home
> inspector I see this all the time. That's enough. Gotta go.
>
> Best Wishes
>
> Terry Wigfield
>
> HouseMaster
>
> 800-789-6007 voice
>
> 301-791-7216 fax
>
> terry.wigfield at housemaster.com <mailto:terry.wigfield at housemaster.com>
>
> ------------------------------------------------------------------------
>
> *From:*
> 5-dayforum-bounces+terry.wigfield=housemaster.com at mailman.howtosellyourhomein5days.com
> [mailto:5-dayforum-bounces+terry.wigfield=housemaster.com at mailman.howtosellyourhomein5days.com]
> *On Behalf Of *Rosemarie and Fred Belcher
> *Sent:* Thursday, August 30, 2007 11:22 PM
> *To:* How To Sell Your Home in 5-Days
> *Subject:* [5-DayForum] 5-day sale planned for Sep 8-9 in Charlotte, NC
>
>
>
> Hi everyone
>
> I have been reading the book and the forum with great interest and
> have decided to run with it! We have a house we have been renting and
> now we need to sell it, so here we go! We are working hard to fix it
> up and make it ready.
>
> I found the sample templates on the website - is that all we need
> for our packets? Time is beginning to feel a little short, but I think
> if we do it before we think too long we'll be better off.
>
> Any advice, comments, etc will be welcome. I have not seen many
> successes on the forum - is that because of the current housing market?
>
> I know I'm supposed to sell to the highest bidder on Sunday night,
> but if it doesn't sell for more than the mortgage amount we can't
> afford to sell, and will just have to continue to rent it. What, then
> should we tell people about selling to the highest bidder? Will it
> spoil everything if I have this thought in my mind?
>
> Thanks for any support!
>
> Regards
>
> Rosemarie Belcher
>
> ------------------------------------------------------------------------
>
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