AgentDirect Program Overview
All properties posted to RealtyBid.com through our Agent Direct Program MUST be represented by an ACTIVELY licensed real estate agent in the state in which the property is located.
There are three requirements to a successful sale on RealtyBid.com and they are:
1. An educated listing Agent
An educated listing agent will know what the property is "truly" worth in the local market and make their Seller aware of this amount. Click here to view the Agent Orientation Video Tutorial.
2. A realistic, genuinely motivated Seller
If the seller has unrealistic prices, you will NOT have a successful bidding event.
3. Great marketing exposure
Assuming the Seller is realistic, you will receive a tremendous amount of exposure using our system. We recommend that you invest some additional money on ads in the local paper advertising the auction and encourage people to place bid online. Obviously it is better to run a display ad with a photo at least two simultaneous weekends to get the most benefit. Click here to view How to Sell A Property.
- The cost to the Seller or Agent to list a property on RealtyBid.com is $150 per property. This is a non-refundable fee that is paid by credit or debit card after the listing agent uploads a property to our system.
- After the $150 upload fee is paid, there are no additional fees to be paid by the Seller or Agent to RealtyBid.com
- The Seller will still be responsible for the agent commissions (previously agreed to in your Listing Agreement).
- The Seller or Agent will be responsible for creation and cost of local and regional advertising, which we highly recommend.
- The BUYER pays what we refer to as the Internet Transaction Fee of 1% of the purchase price or a minimum of $500 (if the purchase price is $50,000 or less) to RealtyBid.com at closing. This fee should be disbursed by the closing agent.
- The "Duration" is the timeframe during which a property is listed on RealtyBid.com to receive bids. It also includes the two-day, pre-auction, staging period and the post bidding period.
- We offer 7-day, 14-day or 21-day bidding events on RealtyBid.com, with the 14-day timeframe being our most common. The fee is $150 for any timeframe you choose.
- There is a Post Bidding time period of up to 7 days for properties that did not meet the reserve price during "active" bidding. This allows more time for the original bidders and new bidders to place higher bids while we negotiate to get your property "under contract". *Remember, MANY properties sell during the Post Bidding Period!
NOTE: To remove a property prior to the full duration of the bidding event, a Withdrawal Penalty will be issued to the listing agent. The Withdrawal Penalty is calculated based on the reserve amount and the transaction fee amount. The Withdrawal Penalty will be 1% of the original reserve amount or a $500 minimum fee charged to the listing agent and due within 30 days of the date the property is withdrawn from RealtyBid.com. To avoid this issue with your Seller, have the seller(s) sign a Listing Addendum that mentions the duration of the auction (see below).
- The Agent is responsible for understanding that listing a property on RealtyBid.com does not insure that the property will be sold…choose the "right" property with the "right" Seller! The key requirement: a realistic, genuinely motivated Seller.
- The Agent is responsible for having a Listing Addendum signed by the Seller(s). Realtybid.com does not require this but we strongly suggest you create this and add it to your paperwork. See link below or click here for a SAMPLE Listing Addendum.
- The Agent is responsible for loading the property into the Realtybid.com system which is similar to loading a property into an MLS system.
- The Agent is responsible for local or regional advertising.
- The Agent is responsible for posting the buyer agent commission (if any) on RealtyBid.com and having the commission amount match both on our site and in any other form of advertising (MLS, etc.) *Note: Approximately half of the properties sold on RealtyBid.com have not had a buyer agent involved.
- The Agent will enter the following:
1) Current list price, and
2) Reserve price (minimum the seller will accept for the property). This amount MUST be a minimum of 5% below the current list price.
- RealtyBid.com calculates the starting bid amount. The starting bid is not chosen by the Seller or Agent.
- Your property will be "live" on RealtyBid.com for the general public to view 48 hours prior to the date and time above.
- After payment is made, and if you checked that a sign is permitted on the property (when loading it into our system), RealtyBid.com will ship a corrugated, plastic yard sign along with a metal stake via 2nd Day Fed Ex to the address entered during registration. You will be responsible for installing the yard sign on the property.
When a property sells on RealtyBid.com:
When a property meets or exceeds the reserve price and is "sold" on RealtyBid.com, the Listing Agent is still an integral part of the "Contract to Closing Process" very much like "traditional" real estate transaction.
If, at the end of the Active Bidding Event, the reserve has been met the Listing Agent will:
- Be provided via email contact information of the property's Winning Bidder.
- Contact the Buyer or Buyer Agent and explain the Purchase Agreement process and explain your Earnest Money Deposit (EMD) procedure.
- Create the Purchase Agreement for this transaction (just as you would for a traditional real estate transaction) making sure to mention the Internet Transaction Fee Addendum which RealtyBid.com will provide to you.
- Have the Purchase Agreement, ITF Addendum and all other locally required documents signed by the Buyer and Seller.
- Arrange the closing. Check with the Buyer or Buyer Agent regarding this.
- Supply RealtyBid.com via fax or email the following within 3 days of execution:
Internet Transaction Fee Addendum
Closer's contact information (company name, contact person, file number, address, phone number, fax number, email address)
HUD1 or Closing Statement when available
- Keep RealtyBid.com up-to-date with any amendments to the contract and pertinent changes regarding closing throughout the process.
If, at the end of the Active Bidding Event, the reserve has not been met:
- The property will remain on RealtyBid.com in its Post Bidding Period to allow negotiations with the high bidder and other bidders to continue for (up to) seven days to obtain an acceptable bid.
- All post bids will be emailed to you from RealtyBid.com for consideration.
- If the reserve is met during the Post Bidding Period or you agree to accept one of the post bids, the property will be considered SOLD immediately, and you will be provided via email contact information of the property's Winning Bidder to create the Purchase Agreement for this transaction just as you would for any other property making sure to mention the Internet Transaction Fee Addendum which RealtyBid.com will provide to you.
- MANY properties sell during the Post Bidding Period!
- If the reserve is not met during Post Bidding, the property will be removed from RealtyBid.com. If you wish to re-offer the property again on RealtyBid.com, the activation fee of $150 would apply.
- Once a property has been activated (paid for), ALL OFFERS received must be placed on the website. NO offer shall be considered "outside" the online bidding event.
- If the property is purchased during the bidding event, the buyer is required to pay an Internet Transaction Fee that was posted on the property's bid page to RealtyBid.com. In addition, if someone who bid on the property during the RealtyBid.com bidding event purchases the property within 30 days of the conclusion of the auction, that buyer is required to pay the Internet Transaction Fee to RealtyBid.com. The Internet Transaction Fee should be disbursed at closing by the closing agent; it is the listing agent's responsibility to make certain this fee is paid by the buyer.
How we market RealtyBid.com:
At RealtyBid.com, we employ a number of different advertising and marketing strategies to attract visitors to our site. Traditional advertising plays a large role in these strategies, as we consistently advertise in numerous large newspapers and magazines across the country and have also invested in national radio and television advertising campaigns.
However, technology-oriented marketing has become a large focus of our advertising strategy. We have found highly-targeted online advertising to be extremely effective. In recent campaigns, we have advertised heavily with real estate search frontrunners RealtyTrac, Trulia.com, Zillow.com, and Yahoo Real Estate, among others.
Additionally, a great deal of our marketing investment is concentrated on increasing our search engine optimization and routing visitors to our website via search engines like Google, Ask, Yahoo, and other Internet traffic drivers. Editorial media exposure and public relations efforts also play a major role in our marketing plan.
Our multi-faceted and technology-heavy marketing approach is definitely paying off. In 2009, RealtyBid.com hosted nearly 42 million visitor sessions, and experienced a huge surge in page views. Plus, in 2009, the website saw both its largest inventory of properties ever and largest number of home sales ever—our true test of success!