5-Day Home Sale?

Hey, I'm still wondering about the 5-day home sale. Have any of you ever done one, anybody know what I'm talking about? I bought a book called "How to Sell Your Home in 5 Days" by Bill Effros. It's very interesting. I would be too chicken to try it right now, but when the market is back up I might give it a try.
Any thoughts?

Rina

What does the strategy entail? What makes it risky? I have never heard of the book or strategy. Can you give me a quick summary?

hey Rina, can you explain a little about that 5 day sell your house thing?

I believe it's a non-reserve auction ie at the end of the 5 days there will be an auction and someone WILL buy the property. The no-reservs is the problem, especially in this market (of skittish buyers).

If the high bid on your property is 1000.00, you agree to sell the house for 1000.

I have seen this several places. I have never actually participated in one but from everything I heard it works. Please let me know what you find out when you do this. I am very interested to see how it works in this market.

yeah, i don't know about that,i don't like the idea of NO RESERVE, i mean it's great if your the BUYER but, if your the SELLER,ouch...YOUR HERO,SULLY.

Here is what I love about a no reserve auction. Just like in any other real estate deal you want to sell. You create a list of motivated buyers that are serious about buying a house to live in or as an investment. As soon as you set the auction date you create a buying frienzy by calling all of the serious buyers to let them know about a great deal they can get at this auction. Put ads in the paper, flyers around town, mail postcards. A buyers list is something you should be building all the time. Right now I have a renters list longer than I have available rental properties so I am in hot pursuit of more properties.

Hi guys. Just checking in. I won't be at a computer 'til late tonight, but I'll fill you in on what the book outlined. It's VERY interesting!

Rina

OK,

The author claims if you follow this to the T it will work every time. 5 DAYS ONLY! By “work” it means your house will sell at the top $ you could get in the current market (might not be what you would “want”)

From the book (How to Sell Your Home in 5 Days):

“
Day 1 - Wednesday
* Run an ad offering your home for 50% of what you think it’s worth “or best offer”. Allow the ad to continue running through Sunday.

Days 2 & 3 - Thursday & Friday
* If you don’t get 25 responses by Friday night, you’ve set your price too high. (Cancel the sale and start over)

Day 4 - Saturday
* Show your home. Allow buyers to leave bids.

Day 5 - Sunday
* Continue showing your home until 5:00pm
* Starting at 8:00pm call all buyers who left bids, to determine who will pay the most for your home.
* By 9:30pm Sunday night you will have received an offer from a qualified buyer or the most money any active buyer is willing to pay for your home on the date you have offered it for sal.

Day 6 - Monday
* First thing Monday morning, contact your settlement agent, who will help you “close” the deal on your home in a manner typical for the area you live in.
“

You're supposed to have signs up saying that no one is bound by any bid - buyer or seller.
So, I think in today's market, if you had to cancel the sale from not enough responses, or you did not follow through on a deal because the bid was too low, you would lose credibility pretty fast.

What do you think?

Rina

But I think this strategy would work A LOT better in a stronger markt. You aren't going to get much of a bidding frenzy in this market.

Yeah, whenever the market goes up I want to try it just for fun. I think I would follow through on whatever the high bid was, though, because I plan to do what I do for a long time here and I wouldn't want people not to trust me, even if I HAD made the conditions obvious.

This is a cool concept. I would think this could be a decent strategy in case you've held for too long and just want to create a 'buzz' on a property to get it sold (worst case). But it, I agree, maybe in a stronger market.

Has anyone heard of the word "cramdown"?
Here is an answer Bill gave to a Florida homeowner (asking $500K) from 4/30/08 5-Day Sale site with Bill Effros. People in Florida trying to use the method are getting very discouraged. (There are others being successful around the country, though)
(Dgadmin, if I shouldn't have copied this, just take it out or let me know.)

Quote:

We all feel your pain.

I don't know exactly what your home is worth, but I'm sure it's worth
substantially less than you must get to emerge from this situation
financially intact.

You had the courage to try the 5-Day Method. For $1000 in a very short
time frame you learned things you don't want to know. What you do from
this point forward will determine how much you lose.

Everyone is playing to minimize their losses--and that includes the
banks.

You must figure out how you will minimize your loss.

Most people in your situation will wind up handing the bank their keys
and walking away from their homes. I believe this will happen so often
in the
upcoming months that it won't really hurt people's credit--anyone will
still be able to buy any home they can afford.

"Short Sale" was an unknown concept when markets were soaring. Now
everyone has this phrase on their lips.

I think the next new word will be "Cramdown".

This is where bankruptcy courts force terms on creditors over their
objections.

I suspect we will be seeing a lot of this.

If the amount you owe the bank is brought down to a level where your
home could be sold, you would sell your home, or continue to live in it
with reduced mortgage payments instead of sending the bank the keys.
This would be better for you, and better for the bank.

If you explore this concept with your bank, after explaining the 5-Day
Method and your results, you may be able to find someone willing to
lower the amount you must repay. Banks are currently stretching out
negotiations to get more payments before foreclosing. Don't let them
do this to you.

Use the word "cramdown" in your discussions with them. Tell them the
most you can get for your home is $317,000 at the current time. Tell
them they are going to get the keys sooner, not later. Then remain
quiet and see what they say.

Use your 5-Day Sale as a negotiating tool. Right now the buyer willing
to pay the most for your home is the bank. They have more to lose than
you. Negotiate with them, and you'll make more money on the sale of
your home than you can make any other way.

Don't wait for the market to figure this out. You have a great
advantage if you negotiate now with your bank.

Bill Effros

:end quote

I think maybe I was born too aggressive but I think what Bill said was right on point. I would do exactly that. I think the banks are getting to realize that some money is better than none or having to wait months for the same thing or less. The "cramdowwn" is a very apt term and I do believe there will be a lot more discussion on it in the upcoming months.

The 5-Day Sale makes a lot more sense, especially in the market I am in right now. Good searching Rina and equally good idea.

"Most people in your situation will wind up handing the bank their keys
and walking away from their homes. I believe this will happen so often
in the
upcoming months that it won't really hurt people's credit"

Not true...handing the keys over to the bank will NOT stop the foreclosure process, and it will hurt the peoples credit, they wont get another loan!

can anyone concur?

D

Technically it will stop the foreclosure.. You will get a deed in lieu of foreclosure ie you deed the property back to the bank.

Credit-wise this is slightly better than a foreclosure. But still a significant ding.

As an aside... there seems to have been a watershed shift in the way people think about their homes. Many more people are simply making the business decision to mail in the keys. It's an investment and NOT as much a home.

maybe get a little more discussion on it.

Anybody done one?

I think that if banks start to forgive portions of a loan to hardship cases (who will determine this), those people who can afford to pay their mortgage will also want to renegociate their terms. There needs to be some sort of penalty to the mortgagee who has their loan reduced.

These are my thoughts, any comments, Al

This is such an interesting time.

Greed has gotten the best of the U.S. Top to bottom, no "class" excluded. The middle class decided they needed to live like the rich, the rich thought they should live like Kings and as my boyfriend always says..this is the only country in the world where the poor people are overweight (and own more "stuff" than I.) Look at where this has led us..we will be a third world country if we don't change our ways.

Sort of got off on a tangent. Yes, people should be helped but they need to held accountable as well.

Yikes...I wouldn't want to be in politics now.