The 5 Day Plan -- Sale or Flop?

By
Real Estate Agent with Bill Cherry, Realtor 0124242

I was reading a piece about a fellow who has a formula he says causes most of his listings to sell in five days.

 

Here it is:

      Day 1    List the house

      Day 2    Do not accept any offers. Create fear of loss and higher bids

      Day 3    Continue to not accept offers

      Day 4    Host open house and receive offers

      Day 5    Sold!

 

The agent says that his experience is that the formula creates higher bids, often for more than the listing price.


I've seen some of this going on in the Dallas market. 


I've also seen a number of those "successful bidders'" contracts fall through leaving the listing agent stranded as she tries to resurrect the energy created by the 5 day plan.


What are your experiences and thoughts about this formula?

 

Bill Cherry
Realtor-Broker

Since 1966

Keller Williams Dallas Premier

Direct: 214 503-8563

BillCherryRealtor.com

 

 

 

 

 

 

 

 

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Rainmaker
1,778,516
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

I have no experience in this matter but it sounds a bit deceptive BILL CHERRY .

Jun 23, 2015 01:59 PM #1
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

in my state there is a law that offers that are signed MUST be presented so there is no agent who can not accept offers.  A seller can decline them, but an agent cannot fail to present them legally.

Jun 23, 2015 02:13 PM #2
Rainer
228,637
Richard Robibero, e-Pro, ABR, SRS
Panorama R.E. Limited - Toronto, ON
Selling Your Home as if it were My Own!

It's a strategy like any other but there's a lot of assumptions in that post. Hot area? Yes this could work. Not so hot area? I'm going to tell my seller to look at all offers I don't care if it's day 2.

Jun 23, 2015 09:51 PM #3
Rainmaker
3,608,572
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I've never heard of this so can't really comment to its efficacy. Is it really the strategy that's working or the hot market and lack of inventory?

Jun 23, 2015 09:55 PM #4
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Gee, if a one size fits all model works for real estate sales then everybody should be doing it. FYI, everybody is not. There is a difference between simple and simplistic.

Jun 23, 2015 10:09 PM #5
Rainmaker
1,577,249
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Bill, of course each state is different, in FL, we must present "ALL" offers and as agents, we don't have the right not to. Even if it was permitted, I personally wouldn't do it myself.

Jun 23, 2015 10:16 PM #6
Rainer
224,874
Cheryl Eskridge, ABR, CRS GRI, PMN, Broker Owner
Eskridge Real Estate - Wimberley, TX
Licensed in TX and WI

In my opinion this is a direct violation of our Code of Ethics! It is not our job to decide what and when offers are presented! Furthermore this relays to the general public that we are not being ethical and practicing deceptive advertising which is also in our Code of Ethics! If I were this person's broker I would demand they stop this activity IMMEDIATELY!

Jun 23, 2015 10:29 PM #7
Rainmaker
393,656
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Beth and Cheryl, you and I are DEFINITELY on the same page.  I also believe it is a violation of ethics, but also I wouldn't want to be the guys attorney defending him in a law suit.  

Preventing people from presenting contracts in a timely manner can't help but be a violation, and certainly not in either party's best interest.

Jun 23, 2015 11:58 PM #8
Rainmaker
324,703
Barbara Calwhite
Keller Williams Realty of Southwest Missouri - Joplin, MO
417-438-7387 Specializing in Relocation

This idea must come from some of the foreclosure companies that won't accept offers for the first 3 days.  Then they will only look at owner occupied offers for the next 10 days, then they will look at investor offers.

I have always hated it when I have a buyer that wants a property with those conditions.  Very frustrating and you can't blame the agent.

I agree that it is a violation.

Jun 24, 2015 12:11 AM #9
Rainmaker
680,255
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Same as Tammy, if any offers come in on the property we legally have to present them to the homeowner. The homeowner can reject them but if it's a decent offer why would they?

Jun 24, 2015 12:29 AM #10
Rainmaker
719,239
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Bill,  There are a lot of jerks in this business. I say that the only strategy you need is competence, hard work, and fair dealing.

Any thing else is subterfuge, and game playing.

Bill Roberts

Jun 24, 2015 12:40 AM #11
Rainmaker
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BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Bill Roberts and I are usually on the same page.  I think it's becuase of the way we were brought up.

Jun 24, 2015 01:54 PM #12
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

BILL CHERRY - happens with few homes here for sure! Though the home has to be at good location and priced right!

Jun 24, 2015 02:06 PM #13
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