Untitled Document

A: A conventional selling method is a variation of a Dutch Auction also called a Slow Dutch Auction. The Dutch Auction runs in the opposite direction. Here, instead of starting at a very low price anybody will pay, the seller starts the bidding at a very high price nobody will pay. The seller then repeatedly drops the price until someone makes an offer. Usually if the property does not sell in 30 days, the asking price is then lowered. The price drops until a buyer is found.

This type of auction is not good for either the buyer or the seller. Buyers cannot buy properties they want at a fair price until it has been on the market for many months. Sellers have no idea what their properties are really worth, because the listing price is the price no one will pay. Using the conventional method, most sellers reduce the selling price, never knowing there were buyers who were willing to pay what they were hoping to get.

Q. What is the difference between a conventional selling method and a NonBinding auction method?

A. The conventional selling method is basically the opposite of the NonBinding auction method. Using the conventional method, you make an offer in writing first, and then you negotiate the price. There are offers and counter offers. Using the NonBinding auction method, you negotiate the price first, and only after the price is acceptable to sellers you make an offer in writing.

Q: How will Real Estate Price Negotiator help me get more listings?

A. Promoting Real Estate Price Negotiator as one of your services will separate you from other agents who continue to use the conventional method. Before you start promoting your new service to your potential clients, you will need to prepare a presentation.

PRESENTATION

Step 1.

You will need to post at least one of your listings online. Upload video or virtual tours and as many pictures as you can. Use Home Page Featured, Category Featured and Gallery Listing options to give your listing more exposure (your listing will be displayed on the main page and will be featured above other listings in the category).

Step 2.

Prepare your own Auction Site.

a.)

My Profile

Go to "My Account" click on the "My Profile" button.

Download your contact information.

When you are finished, click on the "Save" button.

b.)

My Site

You can create your own auction site complete with logo, HTML description, and your own category style listings.

Click on the "My Site" button.

Under "Agent's Name", insert your name and title. Under "Company", insert the company name. Under "About me" insert description of your services, marketing plans, testimonials etc.

When you are finished, click on the "Next" button.

Upload your company logo, your photo and click on the "Confirm Changes" button, than click on the "Save Changes" button.

You do not have to worry about your "Listing Templates" site - it is done for you automatically.

NOW YOU ARE READY!

Step 3.

Make several copies of your presentation (print your listings and your service pages). It is much easier to explain to your customer about the auction online if you can show them some examples. The best way is to use a computer (laptop). You will be able to do your presentations at anytime and anywhere.

Step 4.

Promote your website

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Q. How does the online auction attract buyers?

A. The curiosity about buying real estate online will attract many potential buyers who would not ordinarily show any interest in the property.

Q. Are buyers allowed to make an offer/bid?

A: Yes. Buyers are allowed to make a bid.

Q. Do properties auctioned online sell faster?

A. Properties auctioned online will sell in a shorter period than those sold the traditional way. Buyers make quicker decisions when they know the property they are interested in is to be sold by a specific time.

Q. How long does an auction online last?

A. An online auction will typically last two days.

Q. Why should I recommend to my clients that they sell their properties online?

A. The auction is the best method for obtaining the highest price for the property. Do not let your clients take any risks; let the market set the price!

Q. How can I get the maximum price at auction online for a property I have listed?

A. You must allow all interested buyers to openly bid on the property, the auction allows the price to increase as high as buyers are willing to pay.

Q. How can I eliminate negotiations?

A. When using the Real Estate Price Negotiator platform, buyers must have a loan commitment in writing (this is verified at the point of signing the contract) and sellers must provide typical contingencies like a home inspection certificate, a seller's property information statement, warranties and other available reports and documents. If everything is prepared up front, there is nothing to negotiate.

Remember, if you want to receive cash (clean/unconditional) offers, it is in your best interest and in your client's best interest that you have all documents ready. Otherwise you will receive offers with contingencies/conditions like "conditional on inspection," etc. which will result in more time and stress to finalize the deal.

Q. Why should I register?

A. Only members of Real Estate Price Negotiator are allowed to use its services.

Q. What does it cost to post a listing on the Real Estate Price Negotiator website?

A. You can post unlimited number of listings (with one picture of the property) at NO COST to you!

SPECIAL FEATURES (front-page gallery, home page featured, category featured, highlight listing, bold listing and extra pictures) are OPTIONAL and available to you for a small fee.

Q. How will I pay the fee?

A. You will pay the service fee via Pay Pal.

Q. How can I see my invoice?

A. Click on the "My Account" button and then go to billing. There you will find your current invoice for the past 30 days. By changing the start and the end dates, you can view more previous transactions. The "Make Payment" button allows you to enter an amount and send money to Real Estate Price Negotiator via any of the available payment options.

Q. Where and how can I see all the activity?

A. Inside the "My Account", you have a powerful listing tracking and accounting service.

Q. What is an increment?

A. The increment is the minimum amount by which buyers are allowed to increase the last bid.

Q. What is the amount of increment?

A. For properties with a Starting Price below $5,000.00 the amount of increment is $25.00 (Rental Auction). For properties with a Starting Price above $5,000.00 the amount of increment is $500.00

Q. Why do the sellers need a pre-inspection before they list the property?

A. The Pre-inspection has many benefits:

Sellers will know the true condition of their property before they put it up for sale. If an inspector discovers any problems, this gives the sellers time to correct them without the buyers knowing about the problems, which results in less stress for the sellers and you, the agent. If buyers know the property is in good condition, they will not use problems discovered by the inspector as a bargaining tool to decrease the price. An inspection certificate can go a long way toward reassuring buyers as to the condition of the property. Buyers will not make low bids/offers if they have seen the inspection certificate.

Q. As an agent, am I allowed to make an offer/bid on behalf of a buyer?

A. Yes, you can, but before you make an offer/bid on his/her behalf, you must have a “Buyer Agency” or an Agreement signed by a buyer giving you instructions and permission to act on his/her behalf.

Q. How can I make a bid?

A. In order to make a bid you must first register with Real Estate Price Negotiator. If you have decided to make a bid, on the listing page click on the "Make a Bid" icon or scroll down to the bottom of the page. The current price, the bid increment and the minimum bid will be shown. In the text field, enter your bid.

Q. What is a proxy bid?

A. A Proxy Bid is another way to say Maximum Bid. Basically, you enter the most the buyer would be willing to pay. As other buyers bid on the property, the Automatic Bidder will automatically bid for you repeatedly all the way up to the amount of your Proxy (Maximum) Bid.

Q: What should I do if somebody is cheating?

There is no doubt that some people will try to insert false bids into the bidding process. If you are under the impression that somebody is cheating, contact him or her immediately and require the explanation. If you find out that they are inserting false bids, you can (with seller's permission) retract their bids.

Q: How can I retract the bid?

A: To retract the bid you must do the following steps:

Sign in
Go to your listing
Click on "bid history"
Highlight the bidder
Click on the "retract bids" button
Type the message for the cheater
Press the "submit" button

That's it. All bids placed by this buyer have been retracted.

Q. Is there any risk that the seller will have to sell below his/her acceptable price?

A. No. If the seller does not like the final bid, he/she may, at his/her own discretion, choose to continue with the auction for an additional period, or to not sell at all. This eliminates any risk of the property being sold below the seller's acceptable price.

Q. Who prepares the Offer?

A. The offer is prepared by the Listing Agent. In the event that the terms and conditions in the offer are not acceptable to the buyers, this must be negotiated at the time of the offer presentation. Buyers may counter the offer, but there is no guarantee that the sellers will accept it. If the sellers do not like the counter offer, they may, at their own discretion, choose to contact any of the previous bidders, continue with the auction for an additional period, or not to sell at all (see Terms and Conditions).

Q. Which properties are best for auction?

A. You can auction every type of real estate property. However, the best candidates for auction are properties that have been on the market for a long period of time and have not received any offers (statistics show, that the average house is sold in 60 days, after this amount of time you should change your selling method); expired properties; unusual properties that have no comparables are difficult to evaluate; recreational properties and land; income properties; investment properties; commercial and industrial properties; businesses; timeshares and you can also use Real Estate Price Negotiator platform to rent houses and apartments.

Q. What is a Gallery?

A. The Gallery is the highest amount of visibility you can get for your listing. It is pooled together with the other Gallery listings and selected randomly to be shown on the top of the main page of the auction. In order to be listed in the gallery you must enter in a valid Picture URL when posting your listing. It is a different way to view listings, showing their pictures first. Many users like to shop this way and it gives your listing the maximum exposure!

Q. What is a "Home Page Featured?"

A. The Home Page Featured is the second highest amount of visibility you can get for your listing. It is pooled together with the other home featured listings and selected randomly to be shown on the main page of the auction.

Q. What is a "Category Featured?"

A. The Category Featured is the highest amount of visibility you can get for your listing in the same category. It is pooled together with the other Category Featured listings and selected randomly to be shown on the top of the category page of the auction.

Q. What is a "Highlight" and "Bold" listing?

A. Simply put, these options attract more attention to your listing (see examples on the main page of the auction).

Q. What is Feedback?

A. Each AGENT is given a feedback rating based on the number of positive and negative comments they receive from BUYERS and SELLERS as they buy or sell. AGENTS can get +1 point for a positive feedback, -1 point for a negative feedback, and 0 points for a neutral one. Only buyers and sellers involved in the same transaction will be able to leave Feedback.

Q: Is a Two-Days Open House enough?

Your Open House should last for two days. Do not reduce your advantage by number of people in your Open House by allowing potential buyers to come over a long period. You want every buyer to see there are many other buyers interested in your listing.

Q: Can I rent a house or an apartment using Real Estate Price Negotiator?

Yes, you can. Rental Auction is the same. Start at 50 percent of what the property owners hope to get. When potential tenants come to your Open House, you have a wonderful opportunity to size them up. They must fill out an application form before they can bid. The bid increment for rental properties is $25.00 (up to $5,000.00). Pretty much everything else is the same.

Q: What should I do if no one responds to my ad?

A: You have made some kind of mistake. Maybe you picked the wrong advertising media, or maybe your ad is not clear enough. Review your ad or try a different media.

Q: What should I do if someone will come with a written offer before the end of the auction?

A: Do not fall for the Written Offer Swindle. The only reason the buyer has for doing this is to buy the property for less than the anticipated highest bid. If the buyer wants to make an offer in writing, ask him/her to make it irrevocable one day after the end of the auction. You made a deal with people who came to your Open House. If you fail to honor the deal you proposed, you could not hope that any of the buyers will trust you in the future.

Q: What should I do if the high bidder will not respond?

A: If the high bidder will not respond within 24 hours (Cooling Period), you must retract the top bid and move on to the next bidder.

Q. Why do I need to stage my listings?

A. When you are taking a listing, you are turning your client's home into a product. It is no longer the seller's home, it now needs to appeal the broadest target market. A recent study done by a top real estate company shows that 77% of home buyers view properties first on the internet. If the photos aren't showing the property at it's best potential and the property doesn't appeal to them they won't bother to view it in person. When they do visit the property, buyers make up their minds within the first 3-6 minutes of viewing. They decide if they connect with the property and what they are willing to pay. A potential buyer viewing your listing needs to be able to imagine themselves living in the space, not as a guest in the seller's home. Most buyers ( 63% ) want houses that are "Move In Ready". They have either little time or little money to make most changes themselves. It needs to be freshly painted, updated, and repaired.

Q: Do online real estate auctions really work?

A: Yes, they do work! If they did not work, we would be seeing a decline in online real estate auctions and instead we are seeing an increase. In today’s market where properties are not selling as fast, sellers are looking for more options. As a result, more sellers are turning to online real estate auctions as a solution. Another reason that online real estate auctions are becoming popular is because buyers are more comfortable bidding online. It is easier to bid than to write up a sales contract.

An auction online is the best way to find great deals. As buyer confidence grows and the online real estate auction success continues, more sellers will move to online auctions, changing the way real estate is bought and sold for everyone.

Do you have a question? Send us an e-mail. We will get you the answer!