Reverse Auctions (What Most Seller's Are Using)

In today's real estate market, many sellers unbeknownst to themselves are using a Reverse Auction: Here is a description of a reverse auction.

A reverse auction is a type of auction in which the roles of buyers and sellers are reversed. In an ordinary auction (also known as a forward auction), buyers compete to obtain a good or service, and the price typically increases over time. In a reverse auction, sellers compete to obtain business, and prices typically decrease over time..

Here is a typical example, lets say that a seller has his home on the market for sale at the price of $950,000. The home has been on the market for 120 days with no interest, so the seller then decides that the price needs to be reduce and drops the price to $899,000 still no interest, time goes by and the seller is getting a bit anxious about the fact his/her home has not sold, so the price comes down again to $825,000 the seller starts to see things start to happen, more showing, and interest in his/her home, but still no offers so the seller decides to drop the price down to $785,000 and an offer comes in. Bingo.So, this is where the real estate market is for this home. The seller has reduced the price to where the home is sellable. With today's real estate market many sellers are using a form of this reverse auction approach.

This home originally was over what the real estate market would bare by $165,000. It took this seller three price reductions before an offer was presented.  A Reverse auction is what has been used, except most seller are not aware that they are using this approach.