Round robin auction - Posted by FBN

Posted by FBN on April 01, 2010 at 21:46:19:

If you have a reserve price, do you need to disclose that there is one before bidding starts. Also, how do you know that the winner can actually get funding to close. Do you take a big non refundable deposit?

Round robin auction - Posted by FBN

Posted by FBN on March 25, 2010 at 10:48:39:

Has anyone used the round robin method to sell their houses? What were your results?

Re: Round robin auction - Posted by Maurice

Posted by Maurice on March 25, 2010 at 19:49:03:

If you mean the 5 Day Method I have used it and think well of it. I tried it and it worked out OK even though it seems a bit “avante garde” for my area. So far as I know, no one ever did such a sale in Belleville Ontario before I did, a year and a half ago. But I got nearly as much as a RE agent, I paid no fees, and it only took 5 days. As far as I am concerned it was a success and I would do it again.

Just keep in mind you will get market price not fantasy price. If you want to hold out for fantasy price do not expect to sell for 5 or 10 years.

Re: Round robin auction - Posted by wpage

Posted by wpage on March 27, 2010 at 16:36:20:

I’ve heard of the 5/7 day system but have no idea where to start? I’m wondering how this method works? What are the simple steps to the 5 day method?

Here’s where to start… - Posted by David Krulac

Posted by David Krulac on March 30, 2010 at 15:12:14:

How to Sell Your Home in 5 Days: Third Edition by William Effros.

The key to the whole book is that you have to price the house low to start and most people can’t do that. Its counter to the grain that people have been taught. The standard method is to start high priced and lower the price until somebody bites. The 5 day method is to start low like 75% to 50% of FMV and have the bidders(buyers) drive up the price.

Think about it, the concept is brilliant yet simple. If you advertise anything for 50% of value, people will be beating down your door to buy the item. and you have to be honest with yuorself as to what TODAY’s true value is. Not what it sold for 3 years ago, not what the jerk down the street got, and not what some sucker who has more money than brains would buy. The real gosh darn it actual value today, now.

I can’t tell you how many times people will say that they want to price their property alittle high in case some out of towner comes bym doesn’t know values and pays too much. There are not that many rich stupid people in the world. most people got rich by being smart. And all you have to do is talk to a competent realtor to find out what values really are.

when you go to actual live verbal auctions, they almost always start very low. Maybe 10% of value, then one person bids and another is bids so as not to let the first guy get a steal, and the bidding escalates from there. Well, the same thing happens with round robin. The seller sets the opening bid and then the multiple buyers take over and keep raising the price , over and over again.

David Krulac
Central Pennsylvania