Posted by JoeMVDC on July 19, 2002 at 12:28:55:
NT
House Auction Follow up - Posted by DeeDee
Posted by DeeDee on July 17, 2002 at 13:48:20:
You experts that told me this was a tactic straight out of Effros book were right on the money. I think it was Jim Kennedy and Ron Starr. They finally returned my call today. I asked several questions. The first girl I talked to didn’t have a clue. They kept switching me back and forth between her and a guy.
Here is what I could pull out of them. It is an all cash purchase. There are no liens or mortgages on the property. They said every encumberance would be paid at closing. He wouldn’t elaborate any more on that.
It has 3500 sq ft. There is no water damage. He said that some taping needed repair and they would take care of all needed repairs before closing. He also said that there would be a sheet available (i think the PTR) this weekend for viewing.
When I asked about FMV, all he would tell me was that the taxable value was $147,000 and they felt it was worth way more than that.
When I asked how the auction worked, he said the buyer would come in and if they wanted to bid they would write their name, phone #, and amt of bid on a piece of paper. THen Sunday night they would call all bidders to let them know what the highest bid was and give them a chance to raise their bid. Prosepective buyers would have up to 8:00pm Sunday night to change their bids. JUST LIKE YOU SAID!
My question is do you think they would tell you the highest bid is one number when it really is a lower number? So, experts, what do you think?
Dee Dee
Re: House Auction Follow up - Posted by mr.wi
Posted by mr.wi on July 17, 2002 at 21:56:13:
Yes the seller will tell you what the high bid is at any time during the auction! (IF they follow the advice in the book!) Not to rain on your parade, but you will more than likely be competing against a tenant buyer. The auction process is designed to attract people like you who will get the bidding process rolling and then drive up the price. The auction will start with the lower bids like yours and then the tenant buyers will kick in because they want the house and alot of times they get carried away emotionally, which drives up the price! The auction will get to a point where all of the investors like yourself will drop out and then you are left with the two to three people who really want the house.
To answer another question that was raised in an earlier repsonse, the buyer and the seller are not obligated to buy or sell until a purchase contract has been signed. This protects the buyer who may wake up with buyers remorse, (had it happen to me : ( but it also protects the seller if they do not get what they need or want out of the house.
Another person said to call in a last minute bid, that only works if you have attended the open house and have already put in a bid before the auction is closed. Only people who have attended the open house and placed a bid by the deadline, will be allowed to bid on the property. Now again, this is only if the owner follows the books outline to a “T”. I hope this helps to answer some questions and clarify things!
Effros book is a great selling tool… - Posted by David Krulac
Posted by David Krulac on July 17, 2002 at 19:34:43:
and I recommend that everyone selling read it. It a very easy short read. we have used it with great sucess. Sold a home for much more than realtor estimate to an all cash buyer. I wrote a review on both Amazon.com and Effros web site.
David Krulac
Central Pensylvania
Re: House Auction Follow up - Posted by Houserookie
Posted by Houserookie on July 17, 2002 at 15:31:19:
DeeDee,
If you are on the selling side, try to incorporate Bill Effros ( 5-day.com ) technique to the No Discount selling method at NoDiscount.com. I think the two combined is the best way to sell. It’s the only way to get top price.
If you’re on the buying side use a realtor to find expired listings or call in a last minute bid.
I am convinced that more sellers will go the auction route as people become more educated.
That’s just my 2 cents.
Austin
Re: House Auction Follow up - Posted by GL(ON)
Posted by GL(ON) on July 17, 2002 at 14:28:45:
I suspected a clever marketing scheme, now I am sure of it.
What a great way to sell for top price, all cash in 2 weeks.
Just for laughs you could put your name in with a low bid and see what happens.
Have you found the experience educational yet? I get the feeling you are learning the ropes all the time.
Re: House Auction Follow up - Posted by Kristine-CA
Posted by Kristine-CA on July 17, 2002 at 14:02:50:
Dee Dee: I’m not an expert, but I am thinking that it doesn’t really matter if the sellers tell you a higher number–it’s not much different than a seller telling you that they have had “better offers.” It’s up to you to know your top offer and what makes sense for you–comparing it with other bids is exactly what sellers (and auctioneers) want people to do.
However, I am wondering if the sellers are bound by some kind regulations or laws because they are selling this “at auction.” It doesn’t really seem like an auction at all. More like trying to get a bidding war going. I know very little about regulations for auctions, especially silent auctions. I’d be curious to know more about this.
Keep us posted. Sincerely, Kristine
David Krulac… - Posted by JoeMVDC
Posted by JoeMVDC on July 18, 2002 at 14:40:21:
David, I went to the website you mentioned nodiscount.com. The website looks exactly like a scam: This master Sek tells you he is going to tell you a secret in 30 min and in the end he want you to click a button after getting your email and then he tells you he offers you a method (not sure a book or a course) for $99.99. Have you purchased his method and it really worked? Can you tell us something about it? Thanks.
Joe
Re: House Auction Follow up - Posted by deedee
Posted by deedee on July 17, 2002 at 14:41:48:
Yes, I have thought about putting in a bid for say 50K knowing full well that there’s a slim to none chance that that will be the high bid.
I am learning so much from everyone in this group. Thanks so much!
Its what called a Dutch Auction … - Posted by David Krulac
Posted by David Krulac on July 17, 2002 at 19:55:13:
I think its a great selling technique that pits buyer against buyer to drive up the price. The competition leads people to raise their bid to fair market value or more. The buyers drive up the price. the seller benifits from a quick sale in a matter of days and an all cash price at top dollar.
David Krulac
Central Pennsylvania
Re: David Krulac… - Posted by Houserookie
Posted by Houserookie on July 18, 2002 at 17:25:04:
How do you know NoDiscount.com is a scam? I think a lot of people on this forum equate ignorance to scam.
I’d be interested in reading why or how you think these guys are scammers. Is it because they actually teach people something? Or is it because it’s something you don’t know about?
The five day method at 5-day.com has been around for several years. The NO Discount guys took the auction strategy and enhanced it by incorporating money and down payment sources, note sources, appraisal tips, and the method of which to handle the bids.
Are you the same person that accused Ron LeGrand as a scammer too last week?
LOL
Austin
I have never mentioned that web site!!! - Posted by David Krulac
Posted by David Krulac on July 18, 2002 at 15:14:27:
The EFFROS site is www.5days.com
That’s not a Dutch Auction … - Posted by Rick(MD)
Posted by Rick(MD) on July 18, 2002 at 10:11:31:
This is more a silent auction. For an explanation on Dutch Auctions check out E-bay.
Rick
Austin… - Posted by JoeMVDC
Posted by JoeMVDC on July 19, 2002 at 06:39:28:
Austin,
You rushed to conclusion a bit too quick. I did not say NoDiscount.com IS a scam, I simply said the way the website lays out LOOKS like a scam, and there IS a difference there. I asked those who bought the method to comment. And I am not the one who accused Ron last week. Have you used Sek’s course yourself?
Joe
David Krulac, sorry it was Houserookie. NT - Posted by JoeMVDC
Posted by JoeMVDC on July 19, 2002 at 06:43:33:
NT
Re: That’s not a silent Auction … - Posted by David Krulac
Posted by David Krulac on July 18, 2002 at 15:11:34:
because the people phone in their bids, nothing silent about it. The term dutch auction has been around a lot longer than E-bay and their definition may not be the traditional, pre-internet definition. hth
Re: Austin… - Posted by Houserookie
Posted by Houserookie on July 19, 2002 at 11:13:52:
Yes I’ve used their system on flips and options.
right you are… - Posted by David Krulac
Posted by David Krulac on July 18, 2002 at 20:44:29:
Austin,
can you summarize the "nodiscoutn method. Thanks.
David Krulac
Central Pennsylvania