OfflineNobody wants to get stuck with the dead weight that is a house that won't sell. The vagaries of the market coupled with the pressures of getting on to your next living arrangement can be enough to send your blood pressure shooting. But Bill Effros thinks he has just the sword to cut through this real estate Gordian knot. He calls it the 5-Day Method, and it's the subject of How To Sell Your Home in 5 Days.
(How To Sell Your Home In 5-Days by Bill Effros)
Here's the method: On Wednesday, "Run an ad offering your home for 50 percent of what you think it's worth or 'best offer.'" Mention amenities for your home, times for a home opening that weekend, and include the line "Home will be sold Sunday night to the highest bidder." On Saturday and Sunday, show your home. On Sunday night, call everyone who left bids and determine who will pay the most. Take the highest amount, and on Monday, call the settlement agent. Including Monday, that's actually six days, but who's counting?
The bidding process is a little tricky. It's called "round-robin" bidding, and all offers are left on bidding sheets that are open to view by others at the open house. After the home showing, the seller calls the bidders and asks those with low bids if they're willing to top the high bid. Eliminations are made, and the next day, you close with that price (provided you're happy with it).
One of the bonuses touted by the book is never having to set a price for the home — you let the buyer do it. Another is that there's no risk. (You are encouraged to tell everyone who places a bid that it is non-binding.) It utilizes free-market concepts to determine the sale price.
Effros' method is predicated on the idea that the process of selling a home should really be about finding the best buyer — not just any buyer. He says that many homes sell for prices lower than other people would be willing to pay. "You sold to the first bidder, not the high bidder, because you didn't know the true value of your home. You could have sold it for more," Effros chides.
Effros assumes that people will want to bid on a home. Many, I'm sure, would. But there's going to be a lot of potential buyers who are turned off by the whole idea and never even look at the house.
One of the major weak points in the plan is that no mortgage lender will pay more than a house is appraised for. Having someone willing to pay the amount of your wildest dreams is one thing; getting them approved is another. Unless they're paying cash, be realistic. Effros goes so far as to say, "The bid price isn't wrong; the appraiser is wrong." He suggests describing the five-day plan to the appraiser and/or bank to get them to increase the appraisal/alter their stance.
How To Sell Your Home in 5 Days also has a section dedicated to advice that is good for any home seller, whether or not they use the five-day method. Knowing what to fix is especially put under the microscope, summed up in the axiom "Fix nothing unless you're certain you'll get back two dollars for every dollar you spend." (This excludes repairs required by law after a professional inspection.)
Some statements, such as "There are always more people who want to buy homes than there are homes. It's just a question of price," sound a little questionable. The author also claims, "When this book is exactly followed, the 5-Day Method works every time." He adds the caveat: "Alter the method at your own peril
Anita
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I would love to hear the details if anyone tries this. If this works, and the word gets out, I could be out of buisness!
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Author Unknown
and believe it or not AL - it worked!
Check out the post FIRST DEAL a few threads down. Others have done it too.
Anita
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I believe i read this strategy some place before,No names...PFRRN!
The idea i like about this concept is people do not know any better
when they just want to show there A$$, Instead of being business!
What i mean is...By nature we are every competitive for being human,
I believe we just hate to lose!The bidding process would work great.
Randy
2birds-------1stone
can you tell us more about how it worked for you?
Here's some good conversation we had almost a year ago on this
http://www.deangraziosi.com/node/2336
I think Suzanna was one of the only people here at the time that had done one. I still haven't tried it myself.
I would love to hear what kind of response you got and how it all transpired. There's nothing like first-hand experiences to give us confidence in trying something ourselves.
Thanks again for a great post!
Rina
P.S. Thought I'd put a link to the "First Deal" post you mentioned, too, to tie these together. Hope you don't mind.
http://www.deangraziosi.com/node/2752
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I had never heard of this before until I read Rina and Susannah post on here so i looked into it some more and used this step by step model to do it. My realtor is never surprised by anything I ask him to do or help me do, so he was all for helping.
We listed it with the MLS, (without a realtor) and marketed it aggressively then ook sealed bids. Went over bids, called the highest bidder, which by chance exceeded the sellers reserve and the house was sold almost instantly. The only additional time was waiting for the title company to get of their butts. Part of being able to bid was to attach a prrof of fund letter with broker info included and being able to close in 10 days
Anita
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"FAILURE IS NOT AN OPTION"
I had never heard of this before until I read Rina and Susannah post on here so i looked into it some more and used this step by step model to do it. My realtor is never surprised by anything I ask him to do or help me do, so he was all for helping.
We listed it with the MLS, (without a realtor) and marketed it aggressively then ook sealed bids. Went over bids, called the highest bidder, which by chance exceeded the sellers reserve and the house was sold almost instantly. The only additional time was waiting for the title company to get of their butts. Part of being able to bid was to attach a prrof of fund letter with broker info included and being able to close in 10 days
Anita
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Anita, did you do this with an ASSIGNMENT?? "exceeded the sellers reserve and the house was sold almost instantly". EXCELLENT idea!!!!
And you didn't even end up doing the round-robin? How much higher was the highest bid than the amount the seller wanted? Closing within 10 days, I'm assuming at least the high bid was for cash. How many others did you have? This would be another great way to add to your buyers' list, as well! Awesome!!
One more question (sorry
), how did you collect your assignment fee for this one (if I read it right)?
Thanks again!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Did you do an open house with the bidding sheet, or JUST take sealed bids? So it was more like a silent auction? just curious about all the ways one can go about this.
(Bill Effros is SOOOOOO adament about following this to the T in order for it to work. have you seen his forum??)
Even Dean's 7-Day sale in the book is pretty detailed about the system.
I think I might be brave enough to try it this summer. There seem to be enough buyers now.
Man, REI is exciting!
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I was just thinking if it will be a way to do it with a rental income property (duplex) where obviously I have tenants and showing the property maybe will be difficult.
At least I got my money maker between my eyes going.
Thanks for all the info.
Daniel
"No compares tu vida con otros. No tienes ni idea de lo que se trata su travesía."
"Don't compare your life with others. You have no idea what you are getting into."
I recently got the idea for this from Anita (thanks again, Anita), and am in the process of doing a quick sale now. The only difference is that I had to stretch it out to 14 days, because of some circumstances that needed to be worked out.
I'm excited about the possibilities.
Terry
Live life abundantly!
Glad to see that its working out for you. Let us know how it works out and remember what I told you about the lowest bids and thier secondary offers. Much success
Anita
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what do you do if you dont get a bid high enough to sell and make a profit. i am speaking legally. if you post it going to the highest bidder and you dont get what you want then you are stuck with a loss?
thats why you keep a reserve. if it is not met you dont have tosell
Anita
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Hi Terry what ever happened with house and sale
Anita
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Check out Chapter 11 of Profit From Real Estate Right NOW!
It clearly explains the process of selling the house, acting as a marketing consultant and collecting your fee.
Anita
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Anyone know if you would need an auctioneer license for this? I know these licenses exist in some state - definitely in MA - but would this marketing strategy fall under that catagory? I presume a licence is needed to perform a forclosure auction, but not sure that this strategy counts?
I hope this question makes sense to someone. Thanks in advance!
This sounds like something I will try I have a house on 5 acrers that I have not been able to move.
Bill
How do you put a reserve on the piece of property, if you are the owner using this method, w/o a real estate agent?
Bill
If anyone would like further information on how to do this to the extreme, then feel free to read and watch the tutorials on exactly how it's done to a very high level degree, this is free content: http://www.simsprofits.com/?1008344
Helping those that I can with real estate at www.BeARealEstateHeavyWeight.com
I know this is an old post, but one of my first experiences looking for my first investment home was attending an "auction" like this. I just followed bandit signs left all over the road selling a home for $17K. This got everyone's attention and I knew it would sell way over that as I had already been bidding on REO's. The "auction" was just a legal pad of paper on a table with all the bids left for everyone to see. Just names and phone numbers. I bid in the morning and came back right before the day ended to see the highest bid and I had the next to highest bid but had my own limit. Two weeks later the guy called me because his first buyer fell through. I declined only because I had just had an offer accepted and couldn't buy two homes. Otherwise, I would have bought it.