4.) THE UNEXPECTED AUCTION TRICK.

I’m sure you are familiar with advertised auctions, such as for artwork, antiques, cars, and distressed real estate. But few home buyers anticipate the “unexpected auction.”

This negotiation trick can arise in several ways. One method is where the seller’s listing price for a house or condo is set artificially low below the true market value. The intent of the listing agent “unethical in my opinion” and the seller is to create a “buyer frenzy” of competitive buyers out-bidding each other far above the initial asking price.

Personally, I’ve seen this negotiation tactic used by home sellers who purchased back in 2004 thru 2008 for a price far below today’s market value. They were thrilled with whatever profit they receive.

Another way this negotiation tactic can arise is when more than one buyer becomes intensely interested in buying a house or condo. They are told by the Realtor, “Another buyer is seriously interested in purchasing this home.” More often than not, are only fishing for a good offer. When the seller rejects the initial purchase offer, it may create competition between two or more buyers.

May I suggest, if you discover you are in an unexpected auction, drop out of the bidding. If you really want to purchase the home, submit a written “backup offer” with a substantial deposit check to show your sincere purchase interest. You might be surprised when you’re told the first buyer who won the “auction” backed out and you wind up owning the home.

Author: danswingblog

Dan has celebrated over 19 years as a full-time Realtor. Successfully listed and sold homes well through the 8 figure market. Advises and assists clients with challenging Portfolios! Not uncommon to be working with foreign nationals, buyers that leverage the Sterling, Euro, and similar currency. Dan welcomes the Global community, with friends in many Nations. He brings a reputation for Integrity, Expertise, and Focus. Our customers deserve the best. Currently provides Residential and Commercial B.P.O.'s, Broker Price Opinions, B.O.V's, Broker Opinion of Value to many lenders. Manage and Sells R.E.O., Real Estate Owned properties, distressed properties! Evaluate and negotiate solutions for sellers and lenders. Developed, operated and sold a Florida "AWARD WINNING" Ad Agency! 2010 & 11 Commercial Agent of the year. RE/MAX Paramount Properties. Relocated to Tampa in 2012, enjoyed retirement for 6 months. Saw unethical practices by some Realtors and choose to reverberate our profession in the Tampa area. In four years built his business to as many as four (4) transactions monthly. Mortgage brokers were calling Dan a Superstar in Real Estate. Dan and his wife relocated to North East Florida, to the community of Nocatee. Currently focusing on 55 and older communities and Luxury Real Estate. Successfully closed on many extremely challenging foreclosures, and Short Sale. Coached and participated in Commercial and Multi-Income Family REO's in the past six years. Elected to the Auburndale City Commission in 1986-88. Created and served as 1st Redevelopment Chair in 1988 & 89 personally put in place all the elements for the Auburndale CRA. 1990 City Commission refused to give a full vote of confidence. After a 5 year journey to personally raise funding, extensive research and study for the CRA district perimeters, and stunned with the Commissions doubt. Positioned himself to run for office again, was re-elected to Auburndale Commission, to serve 1991-93 to full fill the CRA master plan! Active with the Central Florida Development Council from conception in 1985 and sat on the board periodically for the past 25 years representing municipalities and private investors. The positions Dan held from 1986 through 1993 enabled him to have a complete workable understanding of the State of Florida Comprehensive Plan for Future Land Use, and the benefits of intergovernmental agreements, utility franchise expansions, and public/private partnerships! Specialties: Assets recovery & receivership, Real Estate Portfolio's, REO & Short Sale of Residential and Commercial negotiations, marketing consultant, public relations, and Broker Price Opinions for residential and commercial lenders.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s