OfflineHas anyone in DG land ever completed a 7 Day Sale auction technique? I have a family friend who's house has been on the market for nearly 2 yrs. She owns the house valued at 190,000 free and clear. When she found out I was a RE investor and I metioned this option to her she was very open to the idea.
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where are you at?
Mt. Pleasant Tx. Small East Texas town ( pop ) 15,000. Town is surrounded by 3 popular lakes. This property is owned by a widow lady who is currently living with her son. A offer of 225,000 was made on this property when it first went on the market 2 yrs ago and her son talked her out of the deal. The house is very unique architectually, located in the center the towns most popular ( and only ) park area. The house is listed with a agent who happens to be my agent partner, who by the way agree's with me in that with the market the way it is, this might be a great idea. I have convienced this lady to at least test this and prove to her what her house is really worth. She is totally frustated and tired of the whole thing, and wants it over with. I know this house would get gobbled up in a hurry using the 7 day deal.
Longhorn
Homeowner's son has agreed to the auction concept. I'm wondering how I should go about getting this property under a short term contract for 30 - 45 day's to properly complete the marketing of the auction. The home has been on the market for 2 years, another 30 day's or so shouldn't matter. This would have to be a " Reserve " auction where the owner can reject any and all offers. Not sure if I should require non-refundable earnest money to place a bid. Any suggestions would be of great help.
Longhorn
There was just a auction recently on a estate home in Arlington, TX on Lake Arlington.
It was valued at $3,000,000.00 and went for the unbelievable sum of $600,000.00. A tremendous deal in itself. They had the property on the market for two years and could not move it any other way.
The best way to do this is to place a ad in the paper, inviting anyone and everyone to a showing as a FSBO. Have a bid sheet created that must be filled out by everyone prior to being provided a tour through the showing.
Explain that all bids will be reviewed and the highest bidder will be notified within 12 hours.
Thanks jimmybtx. Should I charge a flat fee or a certain % of the sale price. I don't want to be too greedy. There are 5 other properties the agent that works with me thinks the auction technique would be perfect for.