Special offer

SOLD in 45 to 60 days

By
Services for Real Estate Pros with Sage Auctions LLC

Istock_000002397033medium SPEED
Faster is always better? Usually there is a penalty for more speed. In Aviation more speed requires less drag, less weight, more lift and more POWER-Thrust. Usually one must give to get, but that’s not always the case.

If I could sell your property for 30% less than your last list price in 45 to 60 days, what would that time be worth to you?

Let’s use a real world example. A commercial building, light assembly to be exact, is listed for $2.1M.  Most local experts predict time on the market through an ordinary sales method to be approximately 14 to 24 months.  Total monthly holding cost for our sample building are $27,000.  If I sell this building in 60 days for $1.5M, (which we did) the owner would have to sell this building at full list price ($2.1M) within 22 months in order to achieve the same value that we delivered. (Do the math).

Did we sell this client TIME ? Absolutely. Did he understand, Time Value of Money ? Absolutely. Did he understand the opportunity cost associated with waiting an additional 22 months to sell his building ? Absolutely.  Could the commercial broker guarantee that his building would sell 22 months later for full list price ? Absolutely NOT.

 
I have just used a technique called Dollarization.  Until your potential client can see dollars and cents, you’ll have a hard time convincing her that you are bringing value to the proposition.
This  is also referred to by Jill Konrath, “Selling to BIG Companies” as your value proposition.  Until the potential client sees your value proposition, you’ll have very little chance selling our method of marketing.

Lori Franks
Real Estate Consultant - Brookings, OR
Brookings, Oregon

Marty, I just stopped by to welcome you to the community and congrats on your first post. Auctions are almost nonexistent in my area. We also have very few short sales and even fewer foreclosures. I think it is because we are a retirement community and we are being spared the hits other communities are taking.

Aug 18, 2008 07:16 AM
Anonymous
Marty Rogers

Lori,

I failed to mention the property was not, in distress, not bank owned and not even close to foreclosure. When you push the pencil it just made financial sense to sell sooner rather than later.  60% of the auctions we do are NOT distressed property, foreclosures are getting all the press theses days but I've been doing this for 20 years and the majority of our auctions are not distressed.

Aug 18, 2008 08:17 AM
#2
Greg Steffens
Mountain Country Realty - Lake Arrowhead, CA

Hi Marty - Welcome to Active Rain and congrats on your first post.  Be sure to spend some time looking around at what and how others are blogging here.  It is a great education and lots of fun.  Looks like you're off to a great start...keep it up!

Aug 18, 2008 08:22 AM
Ted Mackel
Keller Williams Realty Simi Valley - Simi Valley, CA
Simi Valley Real Estate Agent

Welcome to ActiveRain. Congratulations on your first post. Get around and check out the community, you'll quickly figure out how to supercharge your blogging skills. 

 Read this blog post: http://www.activerain.com/blogsview/535552/Three-Mistakes-Newbies-to

Aug 18, 2008 08:22 AM
Stefan Geyer
SOA Realty - Aurora, CO

Auctions seem to be appropriate in certain situations, though I have not had one of those situations come up yet.  Welcome to Active Rain, I wish you the best!

Aug 18, 2008 12:42 PM
Ron Brown NMLS #270845
NMLS ID: 40831 - Federal Way, WA

Marty,

Welcome to Active Rain! Congratulations on your first blog.  You'll find this is a great site for sharing ideas, networking, and growing your business.  If you ever have a question about VA loans, or FHA loans I'd be happy to help!

Ron Brown

VA Loan & FHA Loan Specialist

First Mortgage Company of Washington

Puyallup, WA

Aug 18, 2008 02:10 PM
Anonymous
Marty Rogers

Stefan, I think someone once said, there is a time and a place for everything.  If we truely put our clients needs before our own and have an open mind concerning the oldest and most used method of selling (competitive bidding), I think we might see more auctions. That is not to say that I think they will ever become main stream, successful auctions are really, really hard.

Aug 18, 2008 02:29 PM
#7
Connie Rice
Keller Williams Greenville Central - Simpsonville, SC
Connie Rice & Partners - Greenville, SC Real Estat

Welcome to the rain! You've joined a great place to network, make and meet new friends and discuss lots of interesting topics. I see you are already off to a great start! Stop by if you get a chance. I would love to hear your feedback on our thoughts! Well, have great time and ENJOY. Look forward to seeing you around.

Aug 19, 2008 07:49 AM
Nate Blankenship - Spartanburg, SC Realtor
Keller Williams Realty - Spartanburg, SC

Welcome to Active Rain! This is a great site to network, learn and share ideas with others. Have a great day!

Nate

Aug 19, 2008 11:09 AM
Nance Burdette
Keller Williams Realty Partners - Spartanburg, SC

Congratulations on becoming a new member of ActiveRain. Being a new member myself going on my second week and only posting a few blogs so far I truly see the awsome advantage that this is; and only the beginning of a healthy and wealthy relationship of abundant professionals. Everyone has been so very kind.   Best of Luck to all of us,  Nance

Aug 19, 2008 02:52 PM
P G
Charlottesville Solutions - Charlottesville, VA

I see that you are new to Active Rain and I just wanted to welcome you. I hope that you enjoy it as much as I do and that you find it a great resource.

Aug 20, 2008 07:37 AM
Starstate Realty
Starstate Realty - Austin, TX

Hi Marty  -  Welcome to ActiveRain. I look forward to networking with you and reading your future post. Have a great day!!!

Jan 13, 2009 04:04 PM