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It just takes 2 - Getting top dollar for your listing

By
Services for Real Estate Pros with D3 Interactive Marketing

Those that follow me know that I have a significant background in the world of online auctions having worked in that realm for the past 12 years.  Today I came upon some stats that proved the point that I have always maintained, "it just takes 2". 

We all talk about short sales and the down economy and the housing bubble and all of the Negative Nancy things that we see today, but let's look at the positive.  How do we get top dollar for our listings?  The Aussies know how, they have been doing it for generations.

In one word:  Auction

I was just reviewing some stats on a vehicle auction.  It was a rare vehicle, but nonetheless a daily driver that had been restored.  The bidding started at $1 though we all knew it wasn't going to sell for that little.  The result was a vehicle that sold for over $150k.  At $100k, there were still 6 bidders in.  By $125k, 4 had dropped out.  The last $30k+ came from a two-way battle for the prize.

No comps needed. No appraisals.  No approvals.  Top Dollar is guaranteed when the market bids for the final value of the item.  In this case it was a car, but it easily could be a home.  REDC knows this even though they don't want you to know they know.  They make millions because realtors themselves haven't approached auctions with the same conviction that they use to approach all other forms of marketing.

I give a shameless plug to my friends over at BidonRealty.com who are just getting started providing a marketplace for realtors to auction listings.  But even if you don't like their setup, there are a few others out there that let realtors do what realtors do and let software do the heavy lifting on the bidding activity.

Remember that it takes 2 bids to make an auction.  Why sell it for less when an auction can bring you more?

Comments (4)

Bryan Robertson
Los Altos, CA

I think this could be a valuable service in markets where there isn't already competition.  It will be interesting to see if this service takes off.

Mar 14, 2011 04:18 AM
Mitch Gover
BidOnRealty.com - Orlando, FL

Shameless?  No.  I like the example of 2005: List a home, and on day one there are 12 showings.  On day 2 there are 9 offers.  What did that mean?  9 Realtors (buyer's agents) are freaking out, 9 buyers, and 9 loan officers.  That's a lot of undue stress on 27 people over one transaction.  In the BidOnRealty.com world, the bidding would take place with each buyer (and their agent) knowing exactly how much it would take to get the home.  And the listing agent knows that they will get the highest price possible for their seller. 

Today's market is different, but the logic is still the same:  It only takes 2.

Mar 15, 2011 02:39 AM
Don Wixom
RE/MAX Executives Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Chris, I have avoided auctions in our area, mostly due to the people who typically run them. I may have to experiment with this strategy at some point.

Mar 17, 2011 02:59 PM
Chris Mayr
D3 Interactive Marketing - Orlando, FL

Don,  That is why I like the BidonRealty concept.  Auctioneers and Realtors notoriously have had an oil and water relationship over the years.  These guys are putting the power of the auction in the hands of the real estate professional.

Mar 18, 2011 12:49 AM