3 Quick Ways To Get Rid Of Unwanted Rental Property For Top Dollar In Today’s Market: Sell Your Property Using a 5 Day Quick Sale Auction

July 19, 2010 at 9:08 am , by Russell Bradchulis

You may be wondering if you’re going to need to hire an auctioneer or auction house for your Quick Sale Auction, and the answer is “NO!” You can hold a Quick Sale Auction yourself with minimum time and effort. There will be some marketing expense involved, but will be well worth it when the house sells.

The goal of the 5 Day Quick Sale Auction is to market the property for 5 days and on the 5th day, hold an open house for 2 hours when all of your prospects will view the property and place a bid on it if interested. Again, the idea here is to create a feeding frenzy of real estate investors and other prospective buyers.

You will not need an auctioneer as the bidding process is similar to that of a silent auction. You will have an Auction Bid Sheet in the kitchen with the following information:

  1. Name
  2. Primary Phone
  3. Address
  4. Email Address
  5. Bid

This is where your prospective buyers will place their bids and will be able to see what the previous bids are. This is the most important piece of paper in the house as this is what you will use later in your round robin process.

There is an important decision that you have to make before you market your property for auction. There are two types of auctions, an absolute auction and a subject to reserve auction. In an absolute auction, you agree to sell the house to the highest bidder, no matter what. In a subject to reserve auction, you can set a minimum price that needs to be met in order to sell the house.

Use this timeline for your 5 Day Quick Sale Auction:

5 Days Before the Auction:

  1. Place an ad in the paper to run every day up until auction day with a few details of the property, the address, date, and time of the auction. Use wording similar to “bids starting at hundreds of thousands below market value!” Do not let anyone see the inside of the house before auction day.
  2. Have flyers printed out which include the following information:
    • A picture of the property
    • The asking price – use “Bids starting at hundreds of thousands below market value!” instead of listing a price
    • A brief description of the property
    • Detailed information on the property including:
      • Year the property was built
      • Property type (ex. Single family, Duplex, Condo, etc.)
      • Square feet
      • Number of bedrooms
      • Number of bathrooms
      • Property taxes
      • Room dimensions
      • Garage info
      • Basement
      • Lot size
      • Heat, water, and sewer details
      • Repairs needed
      • Age of roof
  3. Bring your flyers to local businesses such as coffee shops, real estate offices, grocery stores and leave a stack at each place or hang on their community board
  4. Place a “Home For Sale” sign in the front yard of the property with a phone number where prospects can reach you along with a literature box full of your detailed information flyers
  5. Place your ad on free sites like Craigslist.com and use social networking sites such as Facebook, MySpace, and Twitter to get the message out. If you have a website, make your auction property a “Featured Property” to draw attention and give details on the auction
  6. Have a Home Inspection done and have the report ready for the auction

3 Days Before the Auction:

  1. Be sure to check your newspaper or online ad to verify that it is being printed exactly how you want it
  2. Refill your literature box at the property and be sure that your sign is still in the yard and highly visible
  3. Place “Home For Auction” signs around the neighborhood with the address and date and time of the auction
  4. Be sure to have returned all phone calls with inquiries about the property and auction
  5. Make a large “AUCTION TODAY” sign with the time to be used at the house on the date of the auction
  6. Do any last minute tidying up or cleaning of the house and yard area

AUCTION DAY:

  1. Arrive to the house at least 1 hour before the auction is scheduled to begin
  2. Place your large “AUCTION TODAY” sign in the front yard of the house so that it’s highly visible
  3. Replace any “Home For Auction” signs around the neighborhood with arrows pointing prospective buyers in the right direction
  4. Place your detailed literature sheets and copies of the Home Inspection on the kitchen table, along with the Auction Bid Sheet and your business cards
  5. Have comparable readily available as well for properties within a mile of the property that you’re selling.
  6. Answer everyone’s questions during the auction and let them know that you will be contacting them later if they place a bid. Verify that the phone number that they’re leaving will be a good number to reach them within the next 2 hours
  7. Once the auction has closed, call each person that placed a bid and let them know what the high bid is. Give them an opportunity to increase their bid. If they increase their bid, mark their new bid on the sheet. You will get down to 2 or 3 prospective buyers bidding against each other and you will continue the
    round robin process of calling each one to let them know what the high bid is and give them the opportunity to increase their bid until you come down to one buyer.

In an absolute auction, the highest bidder gets the house. If you placed a reserve, you don’t have to sell the property if the highest bid does not meet your reserve. There are also auction houses that will hold the auction for you for a fee. They will do all of the marketing for you and will hold the auction. Some of these auction houses are:

Hudson and Marshall (http://www.hudsonandmarshall.com/)
House Auction (http://www.houseauction.com/)

Russell Bradchulis is the CEO and Founder of Foresight Home Solutions, LLC, a full-service real estate solutions provider specializing in Foreclosure Assistance, Residential Redevelopment, and Estate Liquidation. You may call him at 781-333-4447 or email him at russell@foresighthomesolutions.com

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