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.