Reverse Bidding? - Sell me your house in Davis, CA for $610,000

Asked by Davis Housing Search, Sacramento, CA Wed Jun 20, 2007

Do you think this would work? I recently spoke with a real estate developer who said he purchased his first home by posting a similar ad. Pros?Cons?

Help the community by answering this question:

+ web reference
Web reference:

Answers

9
Jim Walker, Agent, Carmichael, CA
Fri Jun 29, 2007
BEST ANSWER
Davis, The idea is a clever one. As I said I always support innovation and out of the box thinking. While experimenting with ideas like that, you should continue to have your Realtor monitor the source of most real estate listings and sales which is the MLS. I have sometimes found very good deals not only in auctions of foreclosures, but more often by purchasing from actual people who used to live in the homes being sold. I.E. , 1) former owner occupants who rented their homes out for a year or two and now need to sell in order to avoid capital gains tax under the IRS rules. 2) job transferee's 3) Children of owners (or heirs) who have moved into permanent elder care or beyond. - These people are a actually more motivated than banks --- and --- they often need the sale to happen within a specific time period. AND their cost basis is WAY lower than the current market value so if they take a 10% hit from market value they still gain far more than they paid. Banks cost basis is usually way higher than market value, so they hate to discount from market value by more than 5%, and will leave the property on the market rather than negotiate away a significant discount. Where are these bargains found? The multiple listing service! (LINK below) http://www.metrolistmls.com/
Ralph has a good point about the dollar amount. You are likely to get more calls from people with homes worth less than 600K who want your 610K than people with homes worth much more than that. I hope you put the ad in and report back the results to Trulia.
Web Reference:  http://www.metrolistmls.com
1 vote
Jeremiah Joh…, , 95946
Fri Jul 13, 2007
We have several agents in our company (Keller Williams Realty) sending buyers offers on homes they view more then 4 times. The buyer’s agent tends to be set back by it at first but it has been working. The seller says “hay I will sell this home to you at this price”. The buyer looks it over and either says yes or they send a counter offer back asking for a little less. I think it makes it easier for the buyer this way. They know what the seller wants right from the start.
Web Reference:  http://www.4saletours.com
0 votes
Davis Housing…, Home Buyer, Sacramento, CA
Fri Jun 29, 2007
Thanks for the input - I may try it.

In a downward market, I am assuming that almost every seller is willing to settle below their asking price. I am hoping that this approach will avoid wasting my agent's (and the seller's agent's) time with offers and counteroffers. In his market, if I have 20+% down, can settle in 10 days, and have a lot of flexibility, shouldn't buyers be looking for me?

Thank again and I encourage more comments.
0 votes
Dezzy, , 94103
Thu Jun 28, 2007
Hey - I'm in the market for a home too. My $0.02 -- why limit your pool of potential homes with a reverse bid?

I suppose it couldn't hurt to see what kind of responses that you'd get; my guess would be that someone looking to answer this type of ad is fairly desperate. Why else would they be actively soliciting bids? On second thought...maybe it IS a good way to go!
0 votes
Davis Housing…, Home Buyer, Sacramento, CA
Thu Jun 28, 2007
Jim - It was a true (non-Freudian) slip - I am not an agent.

The changing market give the buyer more options and, as a buyer, I am simply looking for alternative ways to explore those options.
0 votes
Jim Walker, Agent, Carmichael, CA
Thu Jun 28, 2007
I always support trying something different. I noticed a Freudian slip though. You wrote you wanted to pull out potential "buyers" who didn't want to stage their homes? Are you sure you aren't really an agent in disguise trolling for potential clients?
Web Reference:  http://www.metrolistmls.com/
0 votes
Davis Housing…, Home Buyer, Sacramento, CA
Fri Jun 22, 2007
Thanks, Ralph, but I already have an agent representing me. I was hoping this method would pull out:
a) potential buyers who didn't want to deal with staging homes or go through the rigmarole.
b) people who had their homes on the market, but were willing to consider this price as a final offer.
Anyone else have thoughts?
0 votes
Ralph Pratt…, , Roseville, CA
Thu Jun 21, 2007
Also you just let them know what your ready to pay for a home, you might get for $590k.
Web Reference:  http://www.ralphpratt.com
0 votes
Ralph Pratt…, , Roseville, CA
Thu Jun 21, 2007
Well, you'll get people like me! There are plenty of homes in that price range in Davis for you. I'm a buyers agent and I work for free! I'm sure you know that the seller pays to have thier home sold so I get paid from the seller. Yes it just may work! I'm sure the sellers agents will be knocking your door down, but you need someone to represent you. Let me know if I can help.
Web Reference:  http://www.ralphpratt.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more