Blog from Angela Hern of Homebids
Imagine you are contemplating selling your family home? You could go through the traditional channels; find a real estate agent, set a price, put it on the market, and wait…wait for what seems like an eternity (at least to the homeowner) for the offers to roll in.
I have seen quite a bit in my 25 years of realty experience and I was recently blown away by the excitement, full transparency, as well as, the high volume of traffic visited my first home auction. Honestly, I had never seen anything like it before.
So, what is the big deal about a home auction?
Home auctions are the new buzzwords these days. Here are a few points to ponder.
Have you heard of Ebay? Well, in some respects, home auctions are similar. The buyers have full control of their bids because the bidding process is fully transparent; all of the buyers see each other’s bids. The bidding is dependent on the buyer alone, whether they are represented or not, however, the buyer must be represented to submit a contract.
I have to admit, I am a tiger when it comes to negotiating for my clients. I won’t stop until I get them what they want. With home auctions, however, realtors and their clients can take a break from all of that. There is NO COUNTERING. You heard me correctly. It is just a clean contract. Simple. No sweat. All that intensity can stay at the gym.
BRING THEM IN
It’s tricky for agents to land on the perfect price point for their clients. Seriously, how do you put a price on a family home full of memories and whatnot? It’s even harder when you intentionally set a lower price. And, that’s exactly what I did. I wanted to get the most attention and views possible. I was confident the transparent bidding was going to do the trick and drive the price up. The neighborhood was humming with questions that were assuaged with my little wine and cheese Q&A the night before the open house.
Oh my, the numbers do not lie! The property was on the market for 8 days, of which 5 were opened to show. On the 8th day…(sounds epic)…I closed the bidding. Here are the numbers: 1,842 sq/ft single story home on a golf course, 3 bedroom, 2 bath, 3 car garage, in San Ramon, CA. There were 151 bids, 47 were registered approved buyers. I put the house on the market for $700,000, the highest bid came in at $927,000. The purchase price then became $950,175 to include the 2.5% buyers premium. And there you have it!!!
Thanks Angela (Her Blog here)