House for $1

[Kyoung]

I didn`t catch the full story on this one but it definitely gets people talking. I can understand that he wants people to come in and see. Is he setting the field for a bidding war?
Can/could he get double the average $340K?


http://www.ctv.ca/servlet/ArticleNews/stor...?hub=TopStories

 

[UTCVenturesLtd]

QUOTE (Kyoung @ Apr 18 2008, 10:01 PM)
I didn't catch the full story on this one but it definitely gets people talking. I can understand that he wants people to come in and see. Is he setting the field for a bidding war?

Can/could he get double the average $340K?





http://www.ctv.ca/servlet/ArticleNews/stor...?hub=TopStories

You can get homes in Calgary for less than $25K!!!! go to www.mls.ca and search that price range and see!

(The catch is that they have to be moved) hohoho

A few years ago, you could buy a building lot in a small Sask town right on hwy 1 east of Swift Current for $1.... I have heard that they all have be taken!

 

[markl]

I saw the article on this on CBC he definatly wants a bidding war this guy is flipping the house. He has done the same thing before in the East End about a year ago. Not bad way to get some free pubilicity though. It`s the old game of the first person who names a price loses.

It is working to get people through the door and that is the purpose of it. It is a blind auction this is what is wrong with the way bids are taken here blind process with the seller holding all the cards I think a more open process this would just be a auction with a reserve price.

Regards,

 

[Kyoung]

well, before joining REIN, my eyes wouldn't have picked it up as I would have thought it's a scam. Some people would have to actually understand this process to attend or some others would be visiting just for fun.




QUOTE (markl @ Apr 19 2008, 08:24 AM)
I saw the article on this on CBC he definatly wants a bidding war this guy is flipping the house. He has done the same thing before in the East End about a year ago. Not bad way to get some free pubilicity though. It's the old game of the first person who names a price loses.



It is working to get people through the door and that is the purpose of it. It is a blind auction this is what is wrong with the way bids are taken here blind process with the seller holding all the cards I think a more open process this would just be a auction with a reserve price.



Regards,

 

[terri]

QUOTE It is working to get people through the door and that is the purpose of it. It is a blind auction this is what is wrong with the way bids are taken here blind process with the seller holding all the cards I think a more open process this would just be a auction with a reserve price.

I totally agree with you Mark, I like the idea of holding an open auction with a reserve like they do in Australia. I`ve had numerous discussions about this with friends/other investors and my realtor about the pros and cons and whether it would sell for more or less than the blind bidding process that we currently have. I think it would be more accurate reflection on the value of a property

So many properties are underlisted with the intention of creating a bidding war, I guess it doesn`t really matter if they are underlisted by 150,000 or
$600,000, so why not list for $1 at least then you aren`t giving anyone a false sense of hope that they can actually afford to buy the house of their dreams for $400,000 when it`s really worth $550,000.

 

[MONEY]

QUOTE (Kyoung @ Apr 18 2008, 11:01 PM)
I didn't catch the full story on this one but it definitely gets people talking. I can understand that he wants people to come in and see. Is he setting the field for a bidding war?

Can/could he get double the average $340K?





http://www.ctv.ca/servlet/ArticleNews/stor...?hub=TopStories




The article said that "Ibrahim, who hadn't yet received any offer as of Friday afternoon,..."

So much for the beginning of his hopeful bidding war.



And what would happen when a buyer comes in with a no-subject offer, that is over the $1dollar, and there are no other offers, yet it is a lot lower than Ibrahim had been hoping for (in his mind). Could the Buyer make him sell, based on the MLS listing? Just a thought. After all there was a seller with a listed price, and a buyer with the CASH to buy. Consumers and Corporate Affairs, wouldn't be looking too lightly at this.

 

[markl]

QUOTE (MONEY @ Apr 21 2008, 09:06 PM)
The article said that "Ibrahim, who hadn't yet received any offer as of Friday afternoon,..."

So much for the beginning of his hopeful bidding war.



And what would happen when a buyer comes in with a no-subject offer, that is over the $1dollar, and there are no other offers, yet it is a lot lower than Ibrahim had been hoping for (in his mind). Could the Buyer make him sell, based on the MLS listing? Just a thought. After all there was a seller with a listed price, and a buyer with the CASH to buy. Consumers and Corporate Affairs, wouldn't be looking too lightly at this.




The seller does not have to sell. They have the right to refuse any offer. You are getting the reporters side of the story I would have to say that he has allowed a 10 day no offer period on his listing and he will try to do it all in 1 day by holding back offers for 10 days. He will get offers now the only question is whether he will consider them or not. He can always go back to all the bidders and say that isn't high enough put more on before I even consider these offers.



This has been happening as long as they have been selling houses in a hot market while it has cooled some what there is still less inventory on the market so that is driving prices now.



Regards,

 

[lanedry77]

QUOTE (MONEY @ Apr 21 2008, 06:06 PM)
And what would happen when a buyer comes in with a no-subject offer, that is over the $1dollar, and there are no other offers, yet it is a lot lower than Ibrahim had been hoping for (in his mind). Could the Buyer make him sell, based on the MLS listing? Just a thought. After all there was a seller with a listed price, and a buyer with the CASH to buy. Consumers and Corporate Affairs, wouldn't be looking too lightly at this.




Money,



Just like Mark said, there's no way to force a seller to accept any offer. If you advertised your car for sale for $1,000 and I offered you $2,000, are you forced to accept the deal? No of course not - you might say "I don't like him, so I won't sell it". The asking price is simply a starting spot in the negotiation process, and good realtors and experienced sellers know that underpricing the listing is the best way to achieve a high selling price, and a quick sale.



I will not participate in the shouting match that you will no doubt try to start, but I cannot help but consider this just another crack in the "I'm an expert" show you've been trying to put on here.




QUOTE (MONEY @ Mar 31 2008, 03:46 PM)
Currently holding 602 suites in Calgary, and considering converting some into condos.

Investing in RM4 properties in beltline area, and then package them for resale to developers/investors.

I'm staying cash positive and diversified with gold and foreign currencies.






David

(A self admited rookie, who claims to be an expert at nothing, and just tries to be honest).

 

[Kyoung]

Interesting discussion everyone!! Still have to learn and discern many things, your input was valuable

 

[Fleetwoodmac]

QUOTE (markl @ Apr 22 2008, 05:53 AM) The seller does not have to sell. They have the right to refuse any offer. You are getting the reporters side of the story I would have to say that he has allowed a 10 day no offer period on his listing and he will try to do it all in 1 day by holding back offers for 10 days. He will get offers now the only question is whether he will consider them or not. He can always go back to all the bidders and say that isn`t high enough put more on before I even consider these offers.

This has been happening as long as they have been selling houses in a hot market while it has cooled some what there is still less inventory on the market so that is driving prices now.

It is no longer a seller`s market but, in today`s environment, is listing one`s home for sale below market a valid strategy?

I can understand maximizing your exposure to as many buyers as possible but, once the offers start coming in, what is the best strategy to maximize your sale price?

I`m assuming you can only counter the terms of any offer. You can`t counter with a higher price or am I wrong? Can you counter any one offer or only all offers at once?

To get the best price should one:
re-list the property at a higher price
play one buyer against another in an auction environment
arbitrarily demand higher offers before considering current offers
tell all buyers the highest current offer and see if they will beat
other

 

[invst4profit]

"It is no longer a seller`s market but, in today`s environment, is listing one`s home for sale below market a valid strategy?"

No, it is a game that real estate agents sometimes play with your property.
To get the best price Know the market. Educate yourself.
Study the comps for the area, find the best agent (based on sales records) that you are comfortable with, and list at what the market indicates is the correct value.
Research is the key. Listen to your realtor but don`t just take what they say at face value as there motivation and goals are not necessarily the same as yours.
There are all kinds of "games" but the key is pricing at what the market will accept.
Achieving that price is the art of Negotiation, something that home owners should attempt to educate themselves on. Too many people place far to much trust in there agents abilities when in fact your agent does not negotiate for you they simply advise and pass offers back and forth.
Once you have a offer the key is reading the buyer just as I research and study sellers.

1- Know your market
2- Know your buyer

 

[Fleetwoodmac]

[quote name=`invst4profit` post=`29811` date=`Jul 25 2008, 12:20 PM`To get the best price Know the market. Educate yourself.

What if you or your agent makes a mistake on the list price or, as we have recently seen, the market happens to be hot for your particular property? In that situation what is your best strategy to maximize the selling price?

 

[Fleetwoodmac]

QUOTE (Fleetwoodmac @ Jul 25 2008, 11:21 AM) To get the best price should one:

• re-list the property at a higher price
• play one buyer against another in an auction environment
• arbitrarily demand higher offers before considering current offerstell all buyers the highest current offer and see if they will beatother

Any REIN sellers had offers above their list price?