Questions About Auctions – What You Need to Know – Part Three

Questions About Auctions - What You Need to Know - Part ThreePart Three: The motivated seller

We’ve talked about the basics of auctioning in part one. In part two we started to talk about what I call the nitty-gritty. We talked about what to do with the auctioneer and how to go about getting involved in the auction. We also talked about the advertising you will need to think about. In part three, we are going to dig deeper!

We left off with advertising and how long (realistically) it will take to get the word out in the market. This is very important but we are going to shift gears and talk about something else that is very important. The tactic of how to negotiate is something that cannot be overlooked. I think your biggest bang for your buck is going back and getting the seller way down.

Let’s look at this example. Say you have a seller who shows up at your door. That’s right!

Say you had mailed out a flyer out to all of the people not only who live in the market, but you mailed to out of state as well. And you get a hit! In fact you have such a motivated seller who not only has sent letter after letter but who also has shown up at your doorstep! Now what do you do?

Well, you at least have a motivated seller.

What you really need to do is have a heart-to-heart with him. I would say, look I am going to try to get every dime I can get out of this house at the auction but I need $50,000.00 minimum more than we sell this house for and I want to make sure that you are flexible. And we are going to find out what the market is going to bear for this house. I am going to spend a bunch of money to get the place full of people and you know if I can’t get more than your $450,000.00 you make sure you are available because you and I are going to have a chat here.

Also keep in mind that you are going to have to stop the auction to call the man unless your bid gets up there. If your bid gets up there you are fine. In part four we will talk about additional things your motivated seller can give you.