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Sunday, September 30, 2012

How to Start a Bidding War

How to Start a Bidding War
Consider these techniques to generate viable offers and start a bidding war on your properties:
Develop a Solid Market Strategy for Each Property: Identify the target market for each property and create
a plan for catching the eye of the most likely buyer. If it is an investor, include in the marketing information the capitalization rate, average market rents and vacancy rates in the area, so the investor can quickly determine if it meets their criteria. If owner occupants are the target, determine how to uniquely distinguish the property from others in the market – such as exemplary schools in the area, appliances that can remain with the house or other value-added characteristics that will generate offers.
Capture the Advantages of an Electronic Marketplace: Choosing the best online real estate market for your listings may appear complicated since some 700,000 electronic markets are available for real estate sales. Rather than automatically using one of the industry standards, choose sites that meet these four key criteria: update data daily so buyers know the availability of a property; allow you to brand your listings by placing your photo and contact information in a highly visible location on the property posting; prominently promote “featured” properties; and offer online transaction functionality to communicate in real time with buyers and their agents.
Offer the Convenience of Online Offer Negotiation: The benefits of online transactions in residential real estate sales include accepting, reviewing and negotiating offers in real-time, and producing a best and final within minutes. For the 79 million Gen Y or Millennials that now outnumber the Baby Boomers and represent a growing volume of real estate offers, the electronic marketplace and online offer negotiation are your best options for reaching these buyers to generate offers.
Ramp Up Your Social Media Outreach: Use an electronic marketplace that integrates a “one stop” social media dashboard so you can manage Facebook, Twitter, YouTube and other e-communications from one convenient place – the outreach you achieve through consistent social media communications has the potential to increase your business opportunities.
Promote Assets Internationally: I also “know for sure” that while real estate is local, the market is now global. NAR’s recent report on international sales shows international buyers purchased $82.5 billion in real estate in the U.S. over the past 12 months.1 Home purchases by the Canadians, Chinese, Mexicans, British and Indians for properties in New York, California and Florida top the list. With more international buyers viewing the U.S. as a safe place for real estate investments, you may find that properties in proximity to manufacturing and other business investments, university campuses and recreational sites appeal to these buyers. What’s the best way to reach international buyers? Start by placing your listings on a global electronic marketplace that allows you to feature homes for minimal fees and provides an option for online offer negotiation and ready use of social media. Since turnkey solutions are particularly appealing to international buyers, make certain to have a rental program service to recommend.
Market the Advantages of Rural Living
Attitudes about the U.S. housing market continue to improve. Fannie Mae’s June survey showed that 73% of Americans surveyed believe it is a good time to buy a home, with 69% of respondents saying they will buy. Rising rental costs and low mortgage rates have become a significant incentive for potential homeowners to purchase and investors to expand their portfolios. These market trends will not automatically generate offers for properties. But, if you implement a strategic marketing plan, skillfully use the right electronic marketplace and social media communications, you may just start a bidding war.

Gary Tippner is Short Sale and Foreclosure Resource Certified
Relocation Specialist ~ Luxury Specialist ~ Investor Advisor

Call 1-877-311-GARY
"One Eight Seven Seven Three Eleven... Gary"

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