One of the newest trends to hit our area are the homes for auction. They've been listed for market value for some time but they are not moving. So, we have a one time open house so that our clients can register to participate in the bid page submission. Attractive prices, you bet. Often times, they are $200,000-$400,000 under market value. Well, they now fit into my client's price range but there is no way that this equity seller is going to sell this home at the lower than market/beginning bid price. I explain to my client that they won't get the home at this price and it is only a sales gimmick to get a bidding price going. However, they are still curious about the process and want to attend the open house with me. So, we attend the event, along with many others during their designated 2-4 hour open house time frame.
Sure enough, they love it for the list price based on the upgrades and that it is soooo far under recently sold comps. We submit the bid at what my clients maximum affordability and still miss out by $250,000 thousand. Frustrated??? You bet.
Here's my suggestion if this is your business model in doing business. Please list the property aggressively but not so aggressive that it is not realistic. Regardless of your "plan" to sell it at market value, an extremely lower priced home wastes a lot of agent's time in coaching, showing, and walking them through the process. Our time could have been used spending quality and constructive time with our buyers showing them legitimately priced homes. I'm not about bashing an agent's creative marketing techniques. However, I feel that some of these auctions do not take into consideration the time that we and our clients are spending going through the process with no shot of even getting acceptance.
What are your thoughts?