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This Old Crack House

From log house to farmhouse. Farmhouse to townhouse. Townhouse to apartment house. Apartment house to crack house. Crack house to our house. Our house to our home.

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Sunday, September 14, 2008

Selling Our House Next Weekend!

No, we are not selling the "Crack House" we are selling the residence house that is three blocks away! I have mentioned before that we are using the "5-Day Method" to sell the house. We bought a book several years ago called "How to sell your house in 5-days" and decided way back then that this might work for us when the time was right. The concept is quite unique. The traditional way to sell a house is for the seller to establish a price that they would like to get for their home. Then lower it after 3 months, then lower it again. Then accept an offer below the asking price or haggle with the first person in many months to make an offer and hope the deal closes. The "5-day Method" is different. We offer the house for less than half of what it is worth. Advertise it like crazy in as many places as possible and hope we get 25 responses to our efforts before the open house on Saturday and Sunday. If we get fewer than 25 responses we postpone the sale and increase our efforts. Right now we have about $300 tied up in advertising and promotion and $250 for an inspection report. Some of our ads will hit a little early but the main effort begins on Wednesday. We only have ONE open house and that is for two days. This makes life easy, doesn't it? We only have to clean the place up one time! Out of the 25 responses to the advertising we should get the three real buyers for our home. On Sunday night I call the people who have left bids in a "Round Robin" bidding sequence in increments of $500 until we have a high bidder. All this does is establish a value for our home. Nothing is binding until we sign a sales agreement. The end result is that we have a real buyer for the house AND a back-up for $500 less. The house should bring fair market value, which it would do if we used a traditional method and we don't have to pay a commission to a real estate agent! Besides this, it will save us up to one years worth of mortgage payments, taxes and insurance. So our acceptance threshold is considerably lower than it would be if we used a traditional method for selling this place. What does this mean? Some lucky buyer is going to get a real deal on a ready-to-move-into-house next weekend and we get to move into a home with a leaky roof that is in dire need of being finished!

2 Comments:

At 9/14/2008 8:34 AM, Anonymous Jenn said...

I'll be interested to see if this works. Our house has been on the market for a few months. Every time we lower the price, more traffic comes through but still not a single offer. Keep us updated.

 
At 9/16/2008 6:26 AM, Anonymous Anonymous said...

Yes I can't wait. What an interesting route and in this housing market, it may just work.

I had my TX house on the market for a year and nothing. Finally rented it out to let someone else pay my mortagage off. In the end I'll come out ahead but it taught me to loathe realtors. Talk about money for nothin'.

-Folksy Lady

 

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