| Please note: This article is part 3 in a series on how to | | | | at the homes a few days before the auction. Also |
| sell your South Florida rehab property FAST | | | | make sure in your advertising that you're offering the |
| Let's quickly recall our scenario: you've purchased a | | | | home at an insanely rock bottom rate that is |
| distressed property from the bank or another | | | | approximately 50-60% of current appraised value (if |
| motivated seller. You've put either put your own hard | | | | you don't know what your home is worth, ask a |
| work in (and sweat!) to fix the property up or invested | | | | realtor or go to to see recent home sales in the area) |
| in a solid general contractor and team to fix up the | | | | 2. Open your home on Saturday and Sunday for |
| property. The home is gorgeous and ready for a | | | | viewing and take bids (even accept $1 bids because |
| wonderful family to move in. | | | | that registers the potential buyers interest and they'll |
| You want to sell fast you don't want to list your | | | | eventually have to make a real bid later). The bidding is |
| property with a real estate agent because you're | | | | completely open so everyone can see what the other |
| concerned that your home will not stand out among | | | | person bid. No secrets here. Bidders will provide the |
| the thousands of properties on the market and more | | | | appropriate phone number to be reached on Sunday |
| importantly the agent might not have the time, money, | | | | night for the Round Robin. Also...on the day of the |
| or inclination to do anything special to market your | | | | auction you should consider having signs posted to |
| home. | | | | direct people to your auction. Either the small bandit |
| Now what? Idea #3: Sell your home using a Round | | | | signs or - even better - live people to hold large |
| Robin Auction | | | | directional signs. |
| You may or may not be familiar with Bill Effros' book | | | | 3. On Sunday evening, you will have a Round Robin |
| "How to Sell Your Home in 5 Days." The entire | | | | Auction with the bidders via phone. How does this |
| premise of the book is that in 5 days you can sell your | | | | work? Essentially you organize the bidders from |
| home at the highest possible price that the home | | | | highest to lowest and then you call each person to let |
| demands, risk free. How? | | | | them know what the highest bid is and ask if they'd |
| | | | like to advance the bid by a minimum of $1000 dollars |
| 1. Day 1-5: Offer your home for 50% of what it's worth. | | | | (or $500 if your expected sale price for the home is |
| 2. Day 4-5: Show your home. | | | | low). You keep sorting the list from highest to lowest |
| 3. Day 5: Sell your home for 100% of what it's worth. | | | | with each round and call everyone until you only have |
| There are plenty of details in each of those steps, but | | | | one winner left. |
| that's the general idea. What I'm going to describe | | | | 4. On Monday, you accept a deposit and sign a |
| below is not the same exact method, but pretty close. | | | | contract with the highest bidder! Ideally, you'll want to |
| I'd recommend that you go to your local library and | | | | make sure that the person has already been |
| pick up this book (or as Bill Effros says on his website | | | | pre-approved for financing prior to signing a contract |
| if you go to your local bookstore you can read the | | | | with them. You can also accept back up contracts |
| entire book in about an hour!). | | | | from next 1-2 highest bidders. |
| So here's how this would work: | | | | These types of Round Robin auctions have been |
| 1. Approximately 1 week prior to the auction, advertise | | | | done successfully for years across the nation by |
| your home using various media: classified ads in your | | | | various real estate investors (including my company) |
| local newspaper and flyer magazine, a webpage (you | | | | and homeowners. |
| can use a free WordPress or Blogspot and get this up | | | | The true value of your home will be discovered when |
| and running with details and pictures in an hour). If | | | | you do an auction such as this. The only risk involved is |
| you're really aggressive, you can buy a list of | | | | loss of marketing dollars for the auction. For those |
| homeowners within a half mile radius and send | | | | who doubt this and wonder "What happens if my |
| postcards to all of them promoting the property and | | | | highest bid is for less than I owe on the home?" Well, |
| the auction. These neighbors will be sure to spread the | | | | the deal can't go through if you can't satisfy your |
| news to others! | | | | mortgage debt! No worries here. Just trust the process |
| If you do this, be sure to buy your list in plenty of time | | | | and do it. You may be surprised at the results! |
| to complete the mailing in a way that the flyer arrives | | | | |