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. 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. 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. Why should I auction my property?

A. The auction is the best method for obtaining the highest price for your property. It will save you time and money. Don't take any risks; let the market set the price!

Q. How can I get the maximum price for my property?

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 long does an auction online last?

A. The seller determines the length of the auction. An online auction will typically last two days, but may be extended if the seller is not satisfied with the highest bid.

Q. Is there any risk that I will have to sell below my acceptable price?

A. No. If you don't like the final bid/offer, you may, at your own discretion, choose to continue with the auction for an additional period of time, or not to sell at all. This eliminates any risk of the property being sold below your acceptable price.

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.

You must have all appropriate documents ready before you begin showing your property to prospective buyers. Remember, if you want to receive "cash" (clean/unconditional) offers, it is in your best interest that you supply all these documents. Otherwise you will receive offers with contingencies/conditions like "conditional on financing", "conditional on inspection," which will result in more time and stress to finalize the deal.

Q. What is the increment?

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

Q. What is the amount of increment?

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

Q. Why do I need a pre-inspection?

A. The pre-inspection has many benefits...

You know the true condition of your home before you put it up for sale. If an inspector discovers any problems, this gives you time to correct them without the buyers knowing about the problems, which results in less stress for you. 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 your property. Buyers will not make low offers if they have seen the inspection certificate.

Q. Do I need an agent if I want to use this program?

A. Yes. Only real estate professionals are allowed to post listings on the Real Estate Price Negotiator website. Licensed real estate professionals have more experience and they have the marketing tools to promote your property more effectively.

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 buyers, this must be negotiated at the time of the offer presentation. Buyers may counter the offer, but you do not have to accept it. If you do not like the counter offer, you may, at your 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: Should I show negative parts of the home inspection report to potential buyers?

A: Yes. Make the report available to all potential buyers, even if it shows things you do not like.

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 home.

Q: What should I do if the top bidder wants to renegotiate the price?

A: Never renegotiate. Settle as agreed, or move to the next bidder. If that does not work out, run another auction. In all likelihood, you will sell your home for almost the exact amount.

Q: What should I do if the deal falls through?

A: Things do not work out every time. If you can‘t save the deal, you will simply have to run an auction again. This is not as bad as it seems. Most of the work is done, and you know exactly what to expect.

Q. Can I auction any type of real estate?

A. Yes, you can auction any type of real estate property. However, the best candidates for auction are: properties that have been on the market for a long 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); unusual properties that have no comparables and 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: 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. More and 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 contract. 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.

Q. Why do I need to stage my property?

A. When you decide to sell your home, you are turning into a product. It is no longer your 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 house needs to be able to imagine themselves living in the space, not as a guest in your 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.

Frequently Asked Questions By Buyers

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What is the difference between the traditional negotiation method and auction method?

Why do I need a loan commitment? I am not ready to make an offer yet.

Why should I register?

How do I register?

Where and how can I see all the activity on listings I have bid on?

How do I get more information about the property?

What should I do if the seller does not have an inspection certificate available?

Do I need an agent to buy real estate?

Is my real estate agent allowed to make a bid/offer on my behalf?

How do I make a bid/offer?

Can I withdraw my bid if I change my mind?

How low am I allowed to bid?

What is the increment?

What is the amount of increment?

What is a proxy bid?

I am using the Automatic Bidder and bidding reached my maximum price. What should I do?

What should I do if I like a property that is not posted online?

Does Real Estate Price Negotiator require a deposit?

Can I choose the closing date?

I am the highest bidder at the time of closing. The seller has chosen to continue with the auction for another seven days. Can this be done?

If I am the highest bidder, what do I do next?

If I am the highest bidder at the time of closing, but I have changed my mind, what can I do?

If I bid on a property online, is this offer binding?

Why should I use the auction method instead of the traditional negotiation method?

Who prepares the offer?

What is a Feedback?

Q. What is the difference between the traditional negotiation method and auction method?

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

Q. Why do I need a loan commitment? I am not ready to make an offer yet.

A. You will need to arrange a loan/mortgage eventually; this will avoid any disappointment that you may encounter if you place a bid only to find out the financial institution will not lend you the money. If the financial institution offers you less money than you expected, you have some decisions to make.

Being approved up front has many advantages...

You know exactly how much money you can borrow, how much interest you will pay, what your payments will be and the most important thing, your financing is guaranteed. To be able to make a bid/offer online, all buyers must have a Loan/Mortgage Commitment and be approved by a financial institution. The approval in writing is required at the point of signing a binding contract.

Q. Why should I register?

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

Q. How do I register?

A. The Registration is FREE.

STEP 1.

Go to the Real Estate Price Negotiator website and click on the "Registration" button.

STEP 2.

Read "Terms and Conditions". If you agree click on the "I Agree" button - it will bring you to the registration form.

STEP 3.

Fill out the form, and click on the "Register" button. You will receive your confirmation number via email.

STEP 4.

Go to your email and click on the link. Insert your User Name and Password.

NOW YOU ARE READY!

Q. Where and how can see all the activity on listings I have bid on?

A. Inside "My Account" you have a powerful listing tracking and accounting service! See the example below.

Bidding/Watching - On this page you can see listings you have bid on, and listings you are watching.

Bidding: Action Needed
0 listings you have been outbid on
0 listings need feedback left
Bidding: General
Currently watching 1 listings
Currently bidding on 0 listings
Currently winning 0 listings
Total items won: 0
Listings: Action Needed
0 listings need feedback left
0 listing templates were recently added
Listings: General
Currently 4 active listings
Currently 0 listings are scheduled to go active
Total listings sold: 0
Total listing templates available

Q. How do I get more information about the property?

A. You can get more information directly from the listing agent via email. At the bottom of every listing there is a "Comments" section where you can ask the listing agent a question, or view previous questions from other users.

When submitting a question to a listing agent, the message gets sent directly to his/her email address on file. The listing agent can respond by following the link in the email.

To ask the Listing Agent a question:

Log into your account.

Go to the listing.

Scroll down to the section marked "Comments."

Click the text "Ask the seller a question." This will take you to a Contact User form.

Enter your message.

Click "Send" button.

Q. What should I do if the seller does not have an inspection certificate available?

A. If the seller does not provide a copy of an inspection certificate at the time of inspection you can still go ahead and make a bid/offer at your own discretion. In the event you are the highest bidder at the end of the auction and you decide to make an offer in writing, make sure that the condition "satisfactory inspection" is inserted in the offer. Protect your interest by hiring a professional real estate agent to do it for you.

Q. Do I need an agent to buy real estate?

A. Although a buyer does not need an agent to buy a property, we recommend that you hire an agent to represent you. An agent can make bids/offers on your behalf. Remember, the listing agent represents the seller's interest, not yours. If you do not have your own agent to represent you, it is a good idea to let your lawyer review the Offer of Purchase and Sale before you sign it.

Q. Is my real estate agent allowed to make a bid/offer on my behalf?

A. Yes, but before your agent will be able to make a bid/offer on a property you are interested in, you must have a signed (Buyer Agency) Agreement. You must give the agent your permission in writing to act on your behalf.

Q. How do I make a bid?

A. Select the property on which you would like to place 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 Maximum bid . You may bid and continue bidding at your leisure until you reach your price limit. You can make a bid as many times as you wish and on as many properties as you wish.

Q. Can I withdraw my bid if I change my mind?

A. No, a bid can not be withdrawn. To withdraw or change a bid would disrupt the auction.

Q. How low am I allowed to bid?

A. The amount of the last bid, increased by the increment is the lowest price you can bid/offer. Example: the lowest price is $160,000 and the increment is $500.00, then the lowest price you can bid/offer is $160,500.

Q. What is the increment?

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

Q. What is the amount of increment?

A. The amount of increment is $500.00

Q. What is a proxy bid?

A. A Proxy Bid is another way to say Maximum Bid. Basically, you enter the most you 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. I am using the Automatic Bidder and bidding reached my maximum price. What should I do?

A. If you wish to make a higher bid, go back to the listing and make a new bid.

Q. What should I do if I like a property that is not posted online?

A. If you are interested in a property which is not posted online, inform the seller or the agent that you are willing to make a bid/offer if the property were available/posted online. Explain to them that selling with Real Estate Price Negotiator is very simple and everyone will benefit.

Q. Does Real Estate Price Negotiator require a deposit?

A. No. Real Estate Price Negotiator does not require a deposit; however, sellers may require a deposit at the time of signing the contract. If a deposit is required, the amount will be shown on the listing form.

Q. Can I choose the closing date?

A. The closing date preferred by the seller is posted on the listing form, however any other date or conditions must be negotiated prior to signing the contract.

Q. I am the highest bidder at the time of closing, but the seller has chosen to continue with the auction for another seven days. Can he/she do that?

A. Yes, the sellers may continue with the auction as long as they wish. It is described in the Real Estate Price Negotiator Terms and Conditions: "If the seller is not satisfied with the highest bid (offering price) at the time of closing, the seller may, at his/her own discretion, choose to continue with the auction for an additional period of time, or not to sell at all".

Q. If I am the highest bidder, what do I do next?

A. If you are the highest bidder at the time of closing, contact the listing agent to confirm the sale and arrange a time to meet and sign the Agreement of Purchase and Sale. You have 24 hours (COOLING PERIOD) to do so. Failure to confirm the sale may result in the selection of the next highest bidder by the seller.

Q. If I am the highest bidder at the time of closing, but I have changed my mind, what can I do?

A. If you are not interested in the property at the end of the auction, and you are the highest bidder, you must inform the listing agent. There is no explanation required.

Q. If I bid on a property online, is this offer binding?

A. In general, because of various local laws that govern the purchase and sale of real estate, when you make a bid online to buy a real estate property, you do not automatically create a binding contract between yourself and the seller. In fact, you are just sending a message to the sellers explaining that if they accept your offering price, you are WILLING to make an offer in writing.

In order to have a legally binding bid, there must be an Agreement of Purchase and Sale signed by both sellers and buyers. For this, the following procedure is to be administered at the close of the auction. The seller or his/her agent will contact the highest bidder to discuss and execute legal documents. Only after the Offer of Purchase and Sale is signed by both buyers and sellers, is a binding bid created.

Q. Why should I use the auction method instead of the traditional negotiation method?

A. The online auction is more effective and efficient. If your are looking for good deals, this is the way to shop for bargains.

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, negotiations will take place at the time of the offer presentation. We recommend that buyers consult with their real estate agent or seek legal advice before they sign an offer. Buyers may counter the offer back to sellers with changes, but there is no guarantee that the sellers will accept the counteroffer. If the sellers do not like the counteroffer, they may, at their own discretion, choose to contact any of the previous bidders, continue with the auction for an additional period of time or to not sell at all.

Q. What is a Feedback?

A. Each User is given a feedback rating based on the number of positive and negative comments they receive from other user's as they buy or sell. You can get +1 point for a positive feedback, -1 point for a negative feedback, and 0 points for a neutral one. The Feedback can be a very important tool for you to use when hiring a real estate agent.

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

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