RealtyBid - How To Sell A Property
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How To Sell A Property

SELLING A PROPERTY THROUGH ONLINE BIDDING

Overview

As a professional real estate agent or bank asset manager, we invite you to try out our innovative and proven online real estate bidding and sales system for residential homes, condominiums, foreclosures, modular homes, land and any other type of real estate. RealtyBid.com was specifically designed to work exclusively with professional real estate agents and brokerage firms. RealtyBid.com has sold over 25,000 homes online since 2001. Let our experience help you sell your listings faster. For a detailed overview of the Agent Direct (Selling) Program that includes "FAQ" and "Who Pays What," click here.

FSBO Listings

RealtyBid.com does NOT allow For Sale by Owner (FSBO) listings. All properties on RealtyBid.com must be represented by a licensed real estate professional. If you are a property owner and you want to sell a property on RealtyBid.com, our staff will be happy to direct you to a qualified real estate agent to assist you.

Listing and Selling Fees

The only fee that is paid by a listing agent to sell a property on RealtyBid.com is the standard $150.00 upload fee. This fee allows the agent to load a property on the site for bidding. For this fee, the agent can select a 7-day, 14-day or 21-day bidding period. A 14-day bidding duration is the preferred timeframe, unless the property is expected to receive multiple offers or is of very high value. In those cases, a 7-day or 21-day timeframe may be chosen. The agent will also receive a property Yard Sign shipped via FedEx and paid for by this upload fee. RealtyBid does not interfere with the agent’s listing or selling fees. If a property sells, RealtyBid will receive a standard fee of one percent (1%) paid by the buyer at the closing, unless otherwise agreed to by RealtyBid.com and the Seller.

Selling Questions and Answers

Q: Where can I find more the details of the Agent Direct (Selling) Program that includes "FAQ" and "Who Pays What?"

A: Click here for details about the Agent Direct (Selling) Program.

Q: Is RealtyBid.com for all properties and all sellers?

A: No, the site is for motivated sellers, but not necessarily desperate sellers. All properties offered on RealtyBid.com are required to have a discounted minimum reserve price of at least five percent (5%) below the current list price.

Q: What is required for a successful sale on RealtyBid.com?

A: There are two requirements for a successful sale on RealtyBid.com, and they are 1) a Motivated Seller and 2) Great Marketing Exposure. If your seller is unrealistic on pricing, you will not be successful on this site. Assuming you have a realistic seller, you will receive a tremendous amount of exposure using our system; however, we recommend that you invest some additional money on ads in the local paper advertising the online bidding event and encourage people to place bid online.

Q: Why would a bidder agree to pay a Buyer’s Premium of 1% when purchasing online?

A: RealtyBid.com is primarily a discount real estate site, not a retail venue for properties; therefore, buyers on the site are willing to pay a 1% fee if they are getting a discounted value in their purchase.

Q: Does my Seller have to accept the highest bid price?

A: No, all properties are sold with an "undisclosed" minimum reserve price. The only prices the public will see are the List Price and the Starting or Actual Bids. The reserve price remains confidential until it has been exceeded during the bidding. At that point, all bidders are notified by the system via email that the reserve has been met. This creates heightened competition among the bidders.

Q: How do I handle bids that are outside the online bidding process?

A: Once a property is listed for online bidding with RealtyBid.com, ALL bids are required to be placed on the website to foster competition; therefore, there are NO bids that will be considered "outside" the online bidding process.

Q: Can I spell out the rules or terms of sale on the site?

A: Yes, when you upload a property, you will be asked to indicate any disclosures for the property, as well as any acceptable contingencies such as inspection periods and financing contingencies.

Q: Should I notify the Seller that I am placing their property on RealtyBid.com?

A: Yes, since a discounted price is required by the system, each agent should get a listing addendum signed by the seller that states, "I agree to have my agent place this property up for competitive bidding online, and I agree that I will approve any bid at or above my reserve price of $(price)." This step will provide additional protection for the agent listing the property if the bidding reaches that price. Sample Listing Addendum

Q: Should I keep the property in the MLS system?

A: Yes and whatever selling agent fee is advertised by the listing agent on RealtyBid.com should be the same as the fee being offered through the MLS. Also, a notice should be placed in the comment section of the MLS listing (if allowable) as follows:

Online Bidding – Place a Bid on this property online at www.RealtyBid.com. Starting Bid is $(starting bid price).

Q:Can I withdraw a property from the bid process after it begins?

A: After listing a property on RealtyBid.com, it must be left on the site for the full Duration of the online bidding event or a Withdrawal Penalty will be assessed (unless prior approval has been granted by RealtyBid.com Management). The "Duration" is the timeframe during which a property is listed on RealtyBid.com to receive bids. It also includes the two-day, pre-bid, staging period and the "post-bid" negotiation period, which could last up to seven days unless a price is agreed upon prior to the end of the 7th day. The Withdrawal Penalty will be .5% of the original reserve amount or a $500 minimum fee (if the original reserve is less than $50,000). This fee is charged to the listing agent and due within 10 days of the date the property is withdrawn from RealtyBid.com.

Q: How do I get started?

A: You can get started in a few easy steps:

There are no sign up fees or ongoing subscription fees to register. Registration is totally free.

IMPORTANT NOTES:

The agent and company information entered during registration will show up on each property you enter onto the site. Please make sure to capitalize letters for your name and company name; otherwise, it will display exactly as you enter it. If you enter “john smith,” instead of “John Smith,” it will use john smith as the contact for all of your properties now and in the future. This will obviously look unprofessional, so be mindful of how you type your contact information.

After activating a property in the system, you will receive an auction yard sign in approximately 2 business days to be placed beside your listing sign on the property.

Click here to REGISTER.

SELLING TIPS FOR ALL PROPERTIES

TIP 1: Advertising and local promotion will definitely help.

One way to enhance the competitive process is through heavy marketing and advertising. This advertising should be constructed to bring awareness to the property and the online bidding timeframe.. Online bidding will only be successful if the buying public is aware of the property and the dates on which bids can be placed.

We recommend display ads or line ads in local newspapers for most properties and national newspapers for luxury and commercial properties. Ads should include a photograph of the property and enticing information about the property to include the date, the list price, the opening bid (which should be quite lower than the needed reserve price), a phone number for property tours, broker/agent information and, of course, the web address for RealtyBid.com (www.realtybid.com).

A sample line ad is offered below. Obviously it is better to run a display ad with a photo for at least two simultaneous weekends to get the most benefit. We also recommend that you contact your local newspaper real estate reporter to let them know you are trying out a cutting edge real estate concept. Many times they will write a local story about the process and the property which is free exposure for you as the agent. Here is one sample line ad

HOME AUCTION
123 Main St - 3 BR / 2BA
Bid Online Now!
List Price: $325,000
Starting Bid: $215,000
Auction Ends Soon
www.RealtyBid.com
or call 555-555-5555

Click here to view other Sample Ads.

TIP 2: Projecting an attitude of seriousness to the bidders is a must.

RealtyBid.com was designed for those people who are interested in selling their property, not just getting an appraisal of market conditions. To get people interested in your property, you must convey an attitude of seriousness. The best way to do that is by setting a low opening bid price and a low reserve price.

The public will see the opening bid price but the reserve price is kept confidential until it is surpassed during the bidding. At that point, the site reveals to the bidders that the "reserve price has been met" and that from this point on the property is selling to the highest bidder.

The reserve price is the price you input into the bidding system asthe lowest acceptable price your customer will accept for the property. This does not mean that the bidding will stop once the reserve price is achieved. The opposite is actually true. Once the reserve is met, we see increased bidding competition because the bidders understand that they will lose the property if they do not act.

When prospective bidders call and ask you what it will take to purchase the property, just state that the listing price is X and the starting bid is Y. Encourage them to bid and let them know that all bids will be presented to the Seller immediately after the conclusion of the bidding. Do not discuss pricing with a potential bidder, as the standard negotiation tactic of stating high pricing to get something close will not work in this format. To be successful, let the website do the pricing for you.