Accelerating Negotiations in Real Estate
Online auction accelerates sales by significantly cutting down negotiations time.
Online auction accelerates sales by significantly cutting down negotiations time consumed in traditional buying and selling.
Breaking it down to a few of the many time intensive components of a traditional transaction that selling or buying through online auction alleviates or eliminates:
- Playing telephone tag
- Recording and accessing voice mails
- Drafting and chasing all the email correspondence
- Traveling back and forth to personal meetings with a seller’s or buyer’s agent and their customers
- The direct involvement of actual buyers or sellers in the negotiations process
Instead, use new online auction technology to negotiate multiple initial tender offers at the same time. Click to present offers, click to counter, reject or accept offers. It’s that easy and takes just seconds.
As to what real estate auction sites are best, always go for the entirely free venues. Ensure that these also do not charge any buyer’s premium, which traditional online or on location auctioneers still charge to this day. This fee can reach up to ten percent over and above the value of the property.
Next Generation Online Real Estate Listing Options
A ‘Best Offer’ listing option allows sellers to receive offers outside of traditional ‘Reserve’ or ‘No Reserve’ auctions
Did you know that just like on eBay, you can list a property on ListedBy as a ‘Best Offer’ option instead of the traditional ‘Reserve’ or ‘No Reserve’ auctions?
For those who want to learn how to start to receive and negotiate actual offers as a result of advertising listings on a real estate site, for free, instead of just getting views and traffic reports, chasing email and playing phone tag with prospects, here are the different listing options on ListedBy.com and what they mean: ow.ly/gaA4g
Residential Real Estate Auction Strategy – ListedBy KNOWLEDGE CENTRE
Attract more buyers to your auction with a lower but acceptable starting price
Did you know that selling real estate at auction with a lower, attractive but acceptable minimum starting price for the homeowner is a powerful strategy to maximize the asset value and final sale price? This strategy, applied for a residential real estate auction, can be highly effective.
As long as a minimum starting bid price is set for the auction, there is only upside. The seller is not obliged to release the property for any bid below the set level. The main advantage of this strategy is pulling potential buyers away from competing properties towards at least having a look. Once buyers have had the chance to see the property, interest is created, and one or more bids are entered, buyers can go on to outbid each other knowing that the property is priced below other listings they had originally been considering.
Benefit 1: Bring in buyers looking at competing properties in the area
Benefit 2: Attract more than one potential buyer
Benefit 3: Create a bidding competition
Benefit 4: Differentiate yourself as a REALTOR with potential future customers by demonstrating you offer a unique value proposition
Read more Power Tips in the ListedBy KNOWLEDGE CENTRE
Avoiding Registration Fees At Real Estate Auctions – ListedBy KNOWLEDGE CENTRE
By eliminating auction fees, more money is left to go towards a property
Most traditional real estate auction companies and real estate auction sites still charge bidders a registration fee, on top of the Buyer’s Premium* that alone can reach a whopping 10 percent of the property value.
The key to maximizing the value of a home selling at auction is to attract more bidders. Applying such fees can have the opposite effect, compromising the asset value and the home seller in the process.
By eliminating all auction registration fees, more bidders are enticed to participate. By removing the Buyer’s Premium as well, more money is left in buyer pockets to go towards the purchase instead of the organization that is running the auction.
* Buyer’s Premium – A traditional practice that new free online real estate auction business models such as ListedBy.com are eliminating. Also referred to as a Buyer’s Penalty, or the fee that a winning bidder must pay over and above the price of the subject property. The premium is typically between two and ten percent of the asset value.
Download your copy of the ListedBy – Real Estate Auction Primer for Consumers printable booklet, for more information about auction terminology.
How to Reach and Hold ‘Top Producer’ Status – ListedBy KNOWLEDGE CENTRE
Christy Crouch
The Crouch Team
RE/MAX All Points Realtors®
Roanoke, VA
www.thecrouchteam.com
www.yourethedifference.com
If anyone in the industry knows how to reach top producer status and hold it consistently, it’s RE/MAX REALTOR® and success coach Christy Crouch. We caught up with Christy to discover her top secret.
LB: Christy, many real estate professionals can and do benefit greatly from your experience. If you were to share your number one secret to success, what would that be?
R: Treating it like a business, as if you own the company and you are the CEO of your company. You have to make choices and behave like the CEO of a major corporation would. Consistency is key. The consistency of what you do day after day in this business determines the consistency of your income month after month.
LB: What is/are the main challenge(s) that you face in pushing through with this advice in your own business. How do you overcome them?
R: Schedule and time management. I have two kids under the age of 13 and juggling it all can be challenging at times. To overcome it I follow a daily schedule. I plan each month out ahead of time with what days I’m working, what activities are going on and work my personal and business life together. I ask myself daily… is what I’m doing today going to benefit me, my family, my business, or contribute to someone else? If the answer is no, I generally shift to a more productive action. On some level it’s simply a choice and you have to Just Do It every single day like the Nike ad says.
LB: What is the main downside for not applying this principle?
R: You’ll never become a top producing agent without treating it like a business. You may sell a lot of houses one year and not the next. You’ll experience inconsistency, overwhelm, burnout and breakdown much more often.
LB: How can listing or buying property using free online real estate auctions or ‘Best Offer’ technology on ListedBy or other platforms impact your business?
R: I believe the more exposure you can have for yourself, your business, and especially your listings, the better off you’ll be. The Internet puts the world at our fingertips and I think we should take full advantage of that.
LB: Anything else you would like to share?
R: I am just like anyone else. If I can do it, they can do it. It’s all about the choices we make every single day. Choose to win and you will!
LB: Once again, thank you very much for your contribution.
About Christy Crouch: Christy Crouch is the co-founder of You’re The Difference Sales & Life Coaching (www.yourethedifference.com), coauthor of the highly acclaimed real estate objection handler book, Now What Do I Say? Christy is an active agent in Virginia, has participated in closing thousands of transactions in her career, and was inducted in the RE/MAX Hall of Fame for her production. Christy is in the top 2.3% of her marketplace. Her goal is to share what she’s learned with other agents to support them in having a highly successful real estate sales business while having a happy and balanced life.
Still Paying Buyer’s Premium at Auctions? A New World Is Here
The New World of Real Estate Auctions
Did You Know….that ‘old’ auction organizations and website models still charge buyers a premium of up to 10 percent on top of the property value?
Free, advertising and services based models are the new world. The result will be mass participation at real estate auctions and optimized property market values.
Auction Is The Norm In …
Big Ben
Did You Know….that auction is the main method for buying and selling real estate in many countries including the United Kingdom, Australia and Sweden?
And for those who’d like to know more about Big Ben, featured here on the left, here it is, from the Wiki: ‘Big Ben is the nickname for the great bell of the clock at the north end of the Palace of Westminster in London, and often extended to refer to the clock and the clock tower, officially named Elizabeth Tower, as well.’
ListedBy KNOWLEDGE CENTRE – Legal Binding In Auction
Did you know that bidding in auction legally binds the highest bidder if their bid meets or exceeds the Reserve price or is the highest bid in a No Reserve auction?
Real Estate Auctions – ListedBy KNOWLEDGE CENTRE – What is a ‘No Reserve’ Auction?
Certainty of a Sale Under a ‘No Reserve’ Real Estate Auction Strategy benefits Both Buyer and Seller
For those entering the real estate auction world, a ‘No Reserve’ auction legally binds the seller to release the property at the highest bid above the minimum starting bid price set by the seller.
In a nutshell, the strategy sets a minimum price the bidding should start at, and sells the asset to the highest bidder at auction expiry. Unlike a Reserve Auction where a hidden reserve price has to be reached by a bidder before the seller is obligated to sell the property.
A No Reserve auction strategy has a number of associated benefits including knowing in advance that the property will actually sell by auction expiry, once an initial bid above the starting minimum bid has been recorded. This benefits both the seller and prospective buyers.
Online Real Estate Auctions – ListedBy KNOWLEDGE CENTRE – How Chicago’s REALTOR® Cassandra Barber Achieves Consistent Success
Cassandra Barber
GRI, SFR
www.realestateauctions.com
Chicago, IL
51-200 employees
Online real estate auctions marketplace ListedBy recently caught up with Cassandra Barber, GRI, SFR to find out the main secret behind her success. Here is our interview:
LB: Thank you very much for your time. We know that many ListedBy. com members and others will benefit greatly from your experience. If you were to share your number one secret to success, what would that be?
R: There is not a secret to my success – just a lot of hard work.
LB: What is/are the main challenge(s) that you face in pushing through with this advice in your own business? How do you overcome them?
R: Staying focused and not allowing distractions to keep me from my goals. Real Estate is an industry that if you allow the “noise” of the next best practice to distract you, you will forever be re-inventing yourself.
When you visualize where you want to be in your business, answer the questions what is it going to take to accomplish that, and stay focused on those answers you will realize your goals.
LB: What is the main downside for not applying this principle?
R: The biggest downside is not reaching your full potential by not accomplishing the goals that you set for your business.
LB: How can listing or buying property using free online real estate auctions or ‘Best Offer’ technology on ListedBy or other platforms impact
your business?
R: I realized auctions provide another tool that REALTORS can offer their clients and of course every circumstance will be different. The market dictates that we must think outside the box and auctions provide an avenue for quick and productive results.
LB: Anything else you would like to share?
R: Auctions may not be for everyone or every home, but agents should consider auctions as a valuable option and tool. The National Assoc. of REALTORS convention this year featured a session on auctions and for me that speaks volume to the value that auctions will have in our market place now and in the future.
LB: Once again, thank you very much for your contribution.
About REA: RealEstateAuctions.com (REA) is a leader in U.S. real estate auction sales. Our team of auction specialists has closed more than 8,000 sales of all types all over the country with a huge list of client partners, including HUD, FDIC, Fannie Mae, Freddie Mac, pension funds and a myriad of other corporations, institutions, developers and private owners located
throughout the U.S.