In an extended interview on Real Estate 360 Radio, ListedBy’s founder and CEO Stephan Piscano shares key information about the online auction movement and discusses specifics related to ListedBy.com.
With transparency and low cost environments being key drivers for buyers and sellers to explore auctioning residential or commercial real estate assets online, Stephan, an accomplished property investor in his own right explains how the free business model can benefit both buyer and seller, and how it can create a new opportunity for the representing real estate agent on both sides to capitalize on the auction trend.
In the interview Stephan offers to listeners an extremely compelling and complimentary downloadable eBook on real estate investing that is helping new and established investors generate double digit returns.
Listen to the interview at http://bit.ly/1eckLl7.
It’s certainly a milestone to see high value intellectual property assets related to real estate, but not exactly property, notes or timeshares, get auctioned on ListedBy. Here is the full announcement.
“NAPA, Calif. – Oct. 09, 2013 – ListedBy (www.ListedBy.com), the first free online real estate marketplace and social network with live bidding residential and commercial public real estate auctions and ‘Best Offer’ functionality today announced that Furman Investments, a North Hollywood company has listed its www.RealEstateAuction.com domain name for auction on ListedBy.com.
The high value asset is listed for USD $700,000 under the Own It Now category on ListedBy, which enables buyers to secure the asset at the specified price. Prospective buyers can also send in offers for the seller’s review, acceptance or countering, directly through the site.
“With ListedBy’s reach continuing to grow, it’s great to see more asset holders turn to ListedBy.com to market real estate related properties from REOs and Notes to now intellectual property, to tap global buyers in an efficient and meaningful way,” said Stephan Piscano, CEO and Founder, ListedBy.
“RealEstateAuction.com is an extremely powerful and commanding domain name that must represent very significant value over the long run,” said Scott Furman, President and CEO, Furman Investments and CEO and Founder, ApartmentBuildings.com. “The auction market is seeing sustained expansion and is expected to continue to grow for years to come. We believe the next owner of RealEstateAuction.com stands to be at a strong competitive advantage.”
The auction is now open and ends at 04:58 PM, PDT on October 11, 2013. Interested buyers can view the auction at http://bit.ly/1bFUlb0 and participate free of charge by first registering on ListedBy.com.”
Talk about testing your emotions. And your relationship with your lifetime partner.
You set a certain budget and know more or less the general areas you’d like to move in to. What you can’t control all the time is the choices that follow. Your REALTOR sets out to find and filter out some possibilities, and you go on the usual online search spree to add to the basket of choices. You also find some foreclosures listed on a public real estate auctions site, and add them to the pot for good measure.
Next comes the drive-by adventure. You come across one of the homes you had liked online, and indeed it looks stunning. Brand new, near schools and transit, and it satisfies many of your other parameters. Most important of all, you know the brand new stainless appliances await, two fireplaces are in stock and the counter tops are beautiful granite and in your favourite colour. That’s the house indeed.
Something nags you though, as the other homes on the street seem quite old. You’re not certain if the general surroundings are exactly what you had hoped for. Surely you could grab one of those older properties for half the price if any went on sale. So the question becomes whether your investment is being made in the right place.
You drive to the next property on your list and lo and behold, you pull into this really nice area with great landscaping and a good community feel. Many new or newer homes on the street, but the one you were looking at still stands from the dear old days it was built. Obviously very well cared for though.
You guessed the dilemma. This house sits in a great neighborhood but is unlikely to offer many of the things you desire. Like the walk-in closet and the shiny new kitchen island. Or the open layout concept. The floors may also not be fresh hardwood. In fact you may have to contend with some weird colour carpeting and wall paper until the renovations you must do are completed. A year or two down the line.
Which of the two homes would you choose to invest your dollars and the next many years in? Which of the two would be the better investment and the better move?
The older street may be due for some tear downs and new build outs. In time, the entire street will get upgraded and the value of your property would be supported along the way. But that’s never a guarantee. Some neighbours may decide to sit on their childhood property, as is, for another 20 years. It’s a gamble. Meanwhile though your home is the best looking one on the street, and you get to live in the house of your dreams.
On the newer street, you get to live in a superb neighborhood where your investment is more likely to hold up and grow, especially if you completely renovate or rebuild the house in the future. In the interim however, you must compromise on the quality of the house you’ve always dreamed of, and you become known as the one who lives in the old house.
This is when I run away from both options and look for a happy medium. Or simply give up the entire thing and hunker down for another couple of years until I can afford a larger budget.
When buying a home, always discuss and decide on your top priorities first. Why are you moving to begin with? What drives you? When we last moved, we really needed to get away from the neighborhood.
Is it a newer neighborhood that you most desire where you may compromise on the home itself a bit, or is it the home that drives you and you’re willing to get into a slightly inferior neighborhood but in an overall good area? Knowing your priorities from the start should minimize surprises, control stress levels a bit, and set your expectations right.
Some investment gurus suggest the older home on the newer street is the better bet. But can you emotionally deal with that and put your dream home aspirations on hold?
Check out some properties in your area that are being sold through online auction. Which would you instinctively want to bid on? The hot deal or the hot property?
If you’re lucky, and patient, you’ll find some that offer the best of both worlds.
How much more can I get for my property is a question that every home seller thinks hard about.
The answer of course depends on many things, including time of year that you plan to sell, if the market is hot or cold, and if you are prepared to do any renovations ahead of listing the house.
In a recent post in the LB Social Forum we listed the top ten features and upgrades you’d want to do and how much more buyers are willing to pay for each.
However, at any time during the year, working with your REALTOR to sell your home using the auction strategy can yield magnificent results.
Certainly the auction process must be handled and marketed well to start, as REALTORS do on any of the traditional deals they represent. That’s a must. All done right, it is not unusual for properties to sell for up to 10 percent, 20 percent or even more, than the reserve listing price.
That’s one good reason to list and sell via auction, versus going the traditional route.
If you are considering selling your property, speak with your real estate agent about auctions. Progressive sites like ListedBy.com cater to real estate auctions, be it distressed properties, REOs, traditional residential real estate auctions or public commercial auctions, completely free of charge for sellers, their REALTORS and buyers.
If you plan to sell your home, an online auction will likely generate a bidding competition and fetch a price higher than you or your REALTOR anticipated.
However, there are also features and upgrades that buyers value and are willing to pay extra to get. Discuss these ideas with your family and real estate agent, as completing one or more of those renovations can further increase the sale price of your property.
According to research by the National Association of REALTORS (NAR), home buyers are willing to dish out up to more than two thousand five hundred dollars for certain upgrades.
This also means that when competing for buyer dollars, offering these upgrades could give you a significant advantage.
Here is the top ten list of upgrades or features and how much a buyer is willing to pay extra for them:
#10: A fireplace (or more than one) – up to $1400 extra.
#9: Eat-In Kitchen – $1770.
#8: Stainless Steel Appliances - $1,850.
#7: Kitchen Island – $1,370.
#6: Ensuite Master Bath – $2,030.
#5: Hardwood Floors – $2,080.
#4: Granite Countertops – $1,620.
#3: Walk-In Closet In Master Bedroom – $1,350.
#2: New Kitchen Appliances – $1,840.
#1: Central Air Conditioning – $2,520.
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.
First Free Online Real Estate Auction Platform with Integrated MLS Listing Search at NAR’s 2012 REALTORS® Conference & Expo
We’re looking forward to seeing you and many of our members at NAR in Orlando in about ten days where we will showcase the latest ListedBy.com release.
The ListedBy team will be at booth #574 from Nov. 9 -12 to demo the upgrade. Full online real estate auction and ‘Submit Offer’ functionality, integrated LinkedIn-line networking tools to build and grow your sales funnel, auction listing search and now also national MLS listing search on the same platform, for an even better user experience, and all for ListedBy’s now famous monthly fee of zero dollars!
If you’re planning to be there, we’ll also be giving away a luxury condo stay in Vegas for four people, and two Nook devices! Please drop by and say hello.