Why Your Home Didn’t Sell,
And How To Get It Sold Next Month!
Quick Sale Research Analysis
By Andy Brown
“I can’t believe my home didn’t sell”. We’ve heard this statement from frustrated owners for months and months. The fact is, some of these owners had the most desirable homes on the market and the property never sold. They felt like their home was priced well and is in good condition but still, no valid purchase offers.
Have you seen what’s going on in today’s market? There are foreclosure filings on nearly every street within the city! These banks certainly don’t want to get stuck with the homes and they are allowing the owners to sell them as a pre-foreclosure for tens of thousands of dollars below TODAY’S market value. How could you ever compete with that? Some of these discounted homes selling way under market value are receiving 10-12 offers in a matter of hours. They certainly aren’t sitting on the market for months at a time like the “traditional” sales. So how in the heck could YOUR home sell above all of the competing foreclosures and pre-foreclosures that the buyers are flocking to?
Are you blaming the market?
Unfortunately, many homeowners are blaming a bad real estate market as the main reason their home didn’t sell. It’s funny though, thousands of homes closed last month in this city, many of which were in your area! Some of these homes sold in a matter of just days, not weeks or months. Granted, the market has shifted DRAMATICALLY but not so much so that nothing is selling. Contrary to this belief, there are literally hundreds of homes successfully closing every week within our area here. The key for you is to ensure that your home can compete with them. You can’t compete on price because there is NO WAY you could sell your home that low so let’s look at some other options that will allow your home to sell just as quickly as theirs.
Today’s foreclosure market/buyer mentality
All of the buyers that are actively looking in today’s market understand that they control the cards. There are thousands of homes for sale today so supply and demand allows them to be pretty picky on what they want to purchase. Of course they want to buy a deal (actually a steal) that is far below market value. Most of these buyers won’t waste their time looking at a property that doesn’t show some type of “seller motivation” such as pre-foreclosure, divorce, death in the family or bank owned, etc.
If you’ve wondered how homes around you can get 10-12 offers in a day while you certainly didn’t even get those 12 people to LOOK at your home, this is the precise reason. It’s what industry professionals call a “sense of urgency” and it is exactly what the buyers are wanting in a home right now. It’s not uncommon for a buyer to tell their Realtor that they ONLY want to see distressed seller properties. If your listing didn’t show some type of severe motivation within the description, most of the great buyers wouldn’t even consider looking at it. How’s that for sobering facts! They looked at neighboring homes simply because of the WORDING in the marketing and they didn’t even consider your house!
So in turn, you’d better find a way to create a “sense of urgency” on your home to entice the buyers to start a bidding war on it, in lieu of all of the other homes for sale. Again, you can’t reduce the price by $25,000 so you’d better have some big tricks up your sleeve! It’s actually pretty easy to do. Read on to find out how!
What marketing can do for your home
So by now you realize that you can’t just re-list your home with another agent and hope that it works out better this time. Having another agent that throws it in the MLS and runs ads for you will not get your property sold. Since you now know what buyers are looking for (motivation), you know that even running a huge ad on the front page of our biggest Sunday newspaper won’t sell the house. You have to create this sense of urgency as the “bait” to get the best buyers to fight over your home. You, another agent, or even a full blown professional marketing company can’t advertise your home enough to make it look more attractive than some of the other deals around your side of town.
If you are going to make your home look as appealing as these “steals” all around you, you’ve got to go to one of the oldest tricks in the book.
“IF YOU CAN’T BEAT ‘EM, JOIN ‘EM!”
It may surprise you to know that these underpriced homes usually don’t sell for the price they are asking. That’s right, they go for far ABOVE that asking price. This is true simply because they are priced at such bargains that nearly every buyer offers more than the asking price trying to beat out the other bidders. It’s not uncommon for them to go for $20,000 or even $30,000 over the ridiculously low list price. As of this writing, I spoke with a home buyer yesterday that offered $22,500 over the asking price and they were not the highest bidder. They are still waiting on another “deal” to come up! They’ve told their agent that they only want to look at motivated sellers, foreclosures and HUD properties or anything that looks like a really good deal in this market.
Have you ever looked on the HUD website for government owned homes in this area? You will quickly see that approx. 90% of these homes are sold in under 4 days for a price far above the appraised value! They get tons of offers in only 4 days and they go for more than the professionally appraised price! And most of these houses are in bad condition! Heck some of them are JUNK and they sell for more than the appraised value by the time the buyers are done fighting over the “steal” as a HUD home.
IT’S CALLED PERCEPTION OF VALUE
Again, it’s important that you tap into this trend with your own home if you want to sell in this economy. I’m sure that by now, you are wondering how in the heck that would be possible right? Well let’s get into that now. Your house can sell in a matter of days too!
Picture yourself as a home buyer right now and let’s say that I am your Real Estate Agent. You and I go out to look at properties today and we find two homes that look really appealing to you. I inform you that one of the houses is a conventional sale and if you like it we can try to write an offer on it to see if the seller will accept the offer. On this other house, we can’t write an offer, we have to place a bid and all bids have to be in by Tuesday at 5:00pm because the seller is taking the highest acceptable offer. Which house sounds like a better deal? Of course you would perk right up and want to know more about how this “bidding” process works.
Now here is a very important question for you. What is the difference between placing an “offer” and placing a “bid”? Answer: NOTHING! Other than perception of value! It’s exactly the same thing! However all banks, government owned homes, VA owned homes and other professional entities understand that offering homes for a specific amount of time, with a deadline, and telling everyone to come with their highest and best bid will make each property sell for OVER market value! Remember that “fear of loss” is always stronger than “opportunity of gain”. You need to be tapped into this if you truly want your home to sell for top dollar.
So let’s go back to the two properties we were considering for your purchase today. You’ve decided to place a “bid” on home number two due to the perception of value. When we looked at the house, there were lots of other buyers there because there is a short deadline on the property. All of the other buyers that were looking in the area also place bids on home number two because every buyer wants a good deal.
Home #1: sits on the market, has no offers, only a few showings and after a few months, the agent tries to convince them to reduce their price because the market is so bad.
Home #2: has 17 offers, with 8 to 10 of these offers being OVER their asking price. The home sells in under 4 days for more than asking price and all of the other buyers want to be a “back-up buyer” in case the first contract doesn’t close.
Yes, this is just a horribly difficult market isn’t it? Only for the “conventional” seller! I mean think about this for a moment. Mr. & Mrs. Smith that own home number one are actually sitting at home, worried about today’s real estate market and wondering why nobody will write an offer on their home. They go outside to work on their landscaping, they repaint the inside of their house and they get the carpets cleaned thinking that maybe this will make their home sell. Maybe the home can show nicer with these updates? Face it Mr. Smith, nobody wants to see your house no matter how nice it is. There is no perception of value on your property. In today’s market, the condition doesn’t matter! Perfect condition only matters in a sellers’ market, not a buyers’ market! So Mr. & Mrs. Smith had a nicer home, in better condition and probably at a better price, and they can’t even get people to look at the home. All of the buyers flocked to the home that had to have the bids placed no later than 5:00pm on Tuesday!
Now the funny part about this is that out of 17 buyers, Home number two can only sell to ONE of these people. That means there are 16 people that still need a home. They are convinced that the home was obviously WAY underpriced because they offered $5,000 over the asking price and still didn’t get the house. So they tell their agent that they want to know about any other bid houses that come up so that they can try to get one of these STEALS that all of the buyers are trying to get in today’s market.
So how could you ever get this huge group of buyers to create a bidding war on your home just like the banks and pre-foreclosure properties do?
Would you accept 6 offers in one day?
It’s actually easy to sell your property with multiple offers in a matter of just a few days if you have the right guidance. The key is to contract someone that understands this “bidding process” which is called a Round Robin Marketing System. In this area the results are nothing short of astounding. From what I’ve seen it’s not uncommon for each homeowner to receive 6 to 10 offers on their home over a weekend!
Let’s talk about how it works
Here is what happens. The home is marketed at an extremely low “starting bid” price. Let’s say you want a minimum of $100,000 for your home. The marketing consultant may START bids at only $52,000 with the homeowner (you) taking the highest acceptable bid by Sunday at 6pm. Now don’t get worried. Remember, you are going to take the highest ACCEPTABLE bid. That means if the home only got bids up to $95,000 you wouldn’t have an acceptable bid and you aren’t required to sell! However, the professional marketer knows how to market your home with starting bids at 52% of today’s market value. How many buyers do you think will show up if a home has a starting bid of 52% of actual value? The specific marketing this professional uses is designed to ensure that anyone remotely thinking of buying a home will show up during the bidding process to drive the price up even more. 52% sounds like the best deal in town. Does that beat all of the foreclosure deals being sold at 75% of value? ABSOLUTELY! What about the HUD homes being sold at 82% of market? IT BEATS THEM TOO! All of the buyers in town want to come see this deal. Of course not all of them are willing to pay full market for the house. Heck, some won’t even go up to 80% but you only need one to fall in love with it and see all of the other buyers looking at this “hot listing”. The key is just to get them in the house right? Once they see the thing, if they are really interested in this price range and this area, your home will sell itself and many of them will go up to, and sometimes above market value. Just get a big group of people to create this “auction-like atmosphere” and let them fight over the home by raising their offers.
This is only a 2 day home sale, usually all day Saturday and Sunday. In this area, it’s pretty common to have anywhere from 50 to 80 buyers coming through your home within that two day period and you will almost always receive at least 12-15 bids on the home. Of course the key is to make sure they know there are lots of people trying to buy it so that everyone comes with really strong offers. Now the negotiating fight isn’t simply the seller against the buyer. It is the BUYERS against the buyers! For basic disclosure purposes I will tell you that these numbers are only true if you are working with a marketing specialist that has lots of experience using this approach and knows what to do to ATTRACT this amount of traffic. That’s why I started this section by saying that there is only one qualified marketer in this area that can create this wonderful sense of urgency you need in today’s market. Experience is key with a system like this. I can give you the contact information here as you may want to get in contact with that office for some more information. From what I’ve seen, it is by far the best way to sell your home with multiple offers in a matter of days.
I’m sure at this point you have a lot of questions regarding this “sell in a weekend” approach so that is probably the best place to direct them. This quick article is simply designed to show you the approach that’s working so well in today’s market so let’s continue with that education now.
You could be CLOSED in 30-60 days!
So if you are truly serious about getting your home sold quickly, I would assume that you would be capable of closing on the property within 30-60 days. You see, when you use this approach, they actually mandate that the buyer MUST close on the home within 30-45 days of the contract date. Under very few circumstances will the marketer extend it out past that date, though if the sale terms are much better for you, and the buyer is willing to pay more for the house it may go up to 60 days. The goal is of course to always close within the 30 day window proceeding the big marketing weekend.
When you get all of the offers on the home, one of the first things your rep will do with you is sit down to go over the terms desired by each buyer. You will look at the higher bid prices first because they show that they are willing to pay the most for the home. How quickly can they close? Are they already approved for a mortgage? These are things that are usually already taken care of by the best buyers that are truly trying to snatch up a “motivated seller” home. They know that they need to have everything in order if they are going to be the lucky winner on a home they bid on so the good buyers are already pre-approved for a mortgage. Again, this is something that can be discussed with your rep but it’s always best to try to close in 30-45 days so if you can’t give up possession of your house within the next couple of months, don’t bother trying to sell it with this method because it literally creates herds of buyers within the property and they will pay top dollar but will want to close quickly.
Your home must qualify
I want to be careful to ensure that this e-book is offered simply as an informational source as this areas representative for the Round Robin Sales System is usually extremely busy due to the recent economic changes. Yes, I know that the system works very well for an immediate sale, though I also know that the schedule is nearly always full for most weekends. Of course there are some qualifications for each particular house before the marketing rep will accept the property into the marketing program and most of the qualifications are based on the likelihood of the house selling over the course of an extensive weekend marketing blitz. Depending on the immediate advertising costs, the rep can spend upwards of $1,200 in marketing for this two day event on your home. Since they only get paid if the property closes, they will want to make sure that the home qualifies and is similar to some of the most recent sales they’ve experienced. All of these reps around the country are paid basic real estate commissions upon closing, just like any real estate agent would be paid for their marketing efforts on your property. Really the big advantage for you as the homeowner is simply that the home sells VERY fast and you are tuned into the market because your property stands out and looks exactly like all of the other extremely motivated properties out there. After all, wouldn’t you consider yourself a motivated seller? You just want to ensure that you can sell quickly AND get top dollar for the property. That’s exactly what this system can do for you. You may also want to ask about the “buyers in waiting” program since meeting 50-100 buyers every weekend can create quite a list of ready, willing and able buyers that they can show your home to BEFORE the two day sale would commence. This area’s rep has a big list of buyers in waiting and they are begging to find out about Round Robin Homes like yours. They probably lost out on another home they placed a bid on and would want priority notification about a home like yours. Be sure your home get’s notification to that hot list of buyers!
So overall, the key to selling your property in today’s market comes down to the exposure you can receive, as well as the perception received by all of the local buyers. Listing your home with another conventional Realtor only allows you to look like all of the other properties in today’s market that are NOT selling. When you take the best bidder approach, you have a MESSAGE-TO-MARKET-MATCH and you get several offers on your property. Best of all, it doesn’t take you months and months to create these results since it is simply a two day marketing blitz to receive dozens of bidders.
Again, to reach your local representative for a free phone consultation to see if your home qualifies for a quick sale, you should contact:
Florida’s Realty, LLC
I wish you the best of luck in the upcoming sale of your home. Always remember, doing the same thing over and over but expecting a different result is the definition of insanity. You certainly don’t want to re-list your home with a regular agent just to let it sit on the market for months and months. Be sure that you study today’s active market and mirror the exact approach that the SUCCESSFUL SOLD properties are using. Increase your odds of selling by attracting dozens of buyers in a very short period of time. Get multiple offers and allow the buyers to fight over your property. The price goes up and you become the winner in the long run. Get started now and take action for yourself! I hope that you’ve found this information helpful in learning how the SOLD properties are moving in today’s market. Your home can be next on that list!