“homebids” is one of the best listing generating tool in the real estate industry and works in any market. “homebids” is a hybrid between real estate auctions and traditional real estate, taking the best features from both. We created a platform that works better than any other real estate selling method, bringing transparency to the real estate industry.With “homebids” there are no specials contracts required.
Real estate commission can be paid by the Seller, the Buyer or both.The “Buyer’s Premium” is included in the sales price. (Highest Bid + Buyer’s Premium = Sales Price) All commissions and homebids fee are paid from the sales price.
- The Seller can pay half of the commission, (2.5% or 3% ) and the Buyer can pay the other half (2.5% or 3% ).
- The Seller can pay full commission (5% or 6%) and do not charge the Buyer’s Premium.
- The Buyer can pay full commission, Buyer’s Premium, (5% or 6%) and the seller pays no commission.
- You can structure the commission according to your client’s needs.
- There is no risk involved for the Seller. Seller reserves the right to accept, counter or reject any bid.
How does “homebids” process work?
On residential properties, the process with “homebids” takes 8 days to sell. Ideally the process should start on a Monday.
- Starting bid price should always be around 20% – 30% below market value
- Post the property on the MLS and the “homebids” website. (Monday morning)
- Market property (all week)
- Open house on Saturday or Sunday (or both) . No showing the property during the week (unless is necessary)
- End the process on the following Tuesday afternoon.
- Receive purchasing contract from the highest bidders within 24 hours or the time specified in the Terms and Conditions.
- Winning bidder might not be the highest bidder. Example: If the 2nd highest bidder which is only $1,000 below the highest bidder has better purchasing terms, the Seller has the right to accept the 2nd bidder’s offer or the Seller can counter both.
How To Prospect
The following is just a sample (that you can edit according to your marketing strategies) on how Agents can prospect for listings on different websites with FSBOs such as: Craigslist, Owners.com, Zillow, etc…
I can bring you multiple offers in 8 days with full broker representation, giving you the opportunity to save half or the entire commission. You can contact me at your earliest convenience and I will be more than happy to meet with you and explain the process.”
This is just an extra tool to generate more listings and you can also use it in addition to any other prospecting methods you currently use.
A professionally designed “homebids” flyer will be available for “homebids” clients.
“homebids” can be presented to any prospective Sellers when farming, door knocking, cold calling, contacting expired listings or FSBOs and posting on social media, etc…
By having the option to charge half or no commission and offer short term listing contracts to Sellers, (usually 10 days) you’ll stand out from the competition.
Listing Presentation (Sample Conversation):
Seller: “How does “homebids” work?”
Agent: ““homebids” is one of the best methods of selling Real Estate in any market. Real market value (RMV), is reached by having Buyers compete against each other. In this process, we usually start the bidding about 20% – 30% below market value. This will bring a lot of attention to the property, generating a tremendous amount of interested Buyers and Agents”
Seller: “When will you show my property to prospective Buyers?”
Agent: “Through this process we will show the property at the open house. This will create a frenzy among the Buyers. If we have a prospective Buyer that can not attend the open house, we will accommodate and schedule an appointment to show the property at another date. This also benefits you the Seller by not having Agents and Buyers in and out of your house everyday.”
Seller: “What is the difference between “homebids” process and real estate auctions?”
Agent: “Real estate auctions have stringent rules where Buyers go into escrow with non-refundable deposit and no contingencies and the Sellers have to provide all the inspection reports and disclosures upfront prior to the acceptance of an offer.
“homebids” uses the online bidding process only. At the end of the bidding process, everything follows just like in any other regular sale. Buyer goes into escrow with all Buyer’s contingency and inspection time frames.
Seller: “Are there any upfront fees?”
Agent: “Not with “homebids”
Seller: “How about the commission. How much do I have to pay?”
Agent: “Through this process you will pay only 2.5% of the sales price and the Buyer pays 3% Buyer’s Premium. This is how it works: Buyer’s Premium will be added on top of the winning bid which shall establish the final sales price. Highest Bid + Buyer’s Premium = Sales Price.”
Seller: “Is there any risk involved for me? Do I have to sell if I don’t like the outcome of the bidding process?”
Agent: “There is no risk involved. You, the Seller reserves the right to accept, counter or reject any bid.”
Seller: “What happens if the property is not going to sell?”
Agent: “ We can always run the “homebids” process again or list it as a regular sale”
Listing price will be the Starting bid price.
The following information shall be included in “Additional Terms” of the Listing Contract (or attach modification of the terms to the listing contract):
- The Seller(s) agree that the property is for sale online bidding at ……………..(your website address) with the starting bid of $………….
- Seller reserves the right to accept, counter or reject any bid.
- “homebids” ends on mm/dd/yyyy at hh:mm.
- Buyer’s Premium….% (built into the sales price). The Buyer’s Premium to be added on top of the winning bid which will establish the final sales price.
- Seller agrees that all commissions and “homebids” fee will be based on sales price and released at close of escrow.
- If the Seller accepts the winning bid, this listing contract shall extend up to close of escrow or mm/dd/yy.
Please note this sample listing agreement is only for informational purposes only.
We recommend if you have any questions, contact your Broker of Record for guidance to make sure you are in compliance with State Law(s).
MLS verbiage for confidential remarks:
Enter Listing as an “Auction”
Check with your Broker for verbiage.
Agent post the property on your “homebids” website.
How to post a property?
“homebids” – Bid online at http://yourwebsiteaddress.com. Starting Bid $____________.
“homebids” ends on mm/dd/yyyy at hh:mm. PM
Buyers and Agents can bid online anytime from the beginning to the end of “homebids” process.
Once the Seller accepts the winning bid everything follows just like in any regular sale. The Buyer will go in escrow with all Buyers contingencies and inspections time frame.
For more information contact Listing Agent!
SELLER RESERVES THE RIGHT TO ACCEPT, COUNTER OR REJECT ANY BID!
Open house dates:mm/dd/yyyy from ____ PM to _____ PM
Buyer’s Premium____% (built in the sales price). Buyer’s premium will be added on top of the winning bid which shall establish the final sales price. Highest Bid + Buyer’s Premium =Sales Price!
The winning Bidder shall provide a purchase contract within 24 hours from the time of acceptance of the winning bid by the Seller. If the Buyer doesn’t provide the purchase contract within the time frame specified above, the Seller reserves the right to accept other offers!
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Name – REALTOR®
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Auto Bid Option
You may place your bid up to the “maximum high” that you are willing to offer on the property. The system is designed to raise your bid in increments of $1,000 above the last bid placed.
Example: If the current bid is $800,000 and you set your “maximum high” of $850,000 the system will raise your bid only to $801,000 and you will be shown as the high bidder. If someone places another bid of $802,000, the system will automatically increase your bid again to $803,000 and so on. If someone, places a higher bid, say $820,000 the system will automatically increase your bid to $821,000 and so on. However, if someone places a bid of $851,000 or greater, this Buyer will be selected as the highest bidder and the system will no longer increase your bid since your “maximum bid” would have been exceeded.
Bidding Auto Extend
Our system prevents last second bidding by automatically extending the bidding time. If a bidder places a bid within 5 minutes of the end of the bidding time, the system will automatically extend the bidding time by 10 minutes in order to allow other bidders the opportunity to respond.
Attention Winning Bidders!
If You Are The Winning Bidder: Please have your Agent submit a signed purchase agreement to the Seller ‘s Agent within the time specified in “Sale Terms and Conditions” (please see the posting details). If you do not have an Agent, please contact the listing Agent prior to bidding.
Important – Notice to Winning Bidder:
Information deemed reliable but not guaranteed and subject to change without notice!
Open House (Sample Conversation):
Buyers: “How does “homebids” process work?”
Agent:Buyers go on my website, register and bid on the property. The highest bid is transparent and is displayed at all times. This is a big advantage for the Buyers vs. traditional sales where Buyers don’t have the option of knowing how much the other offers are.”
Buyers: “How can I bid on the property?”
Agent: “In order to bid on the property, you have to be approved. There are two ways of getting approved: By using your credit card (used for identification purposes only) which is an instant approval. Your credit card is not going to be charged unless you are the winning bidder accepted by the Seller and you fail to provide a purchase contract. In this case there will be a penalty of $500.00 charged to your credit card.
The second option is manual approval. I will require information such as pre-approval letter from a lender and/or proof of funds. You will have to register on my website and provide me the email that you registered with and I will approve you manually.”
Buyers: “What if I bid just a few seconds before the bidding ends? Can someone else still outbid me?”
Agent: “Our system prevents last second bidding by automatically extending the bidding time. If a bidder places a bid within 5 minutes of the end of the bidding deadline, the system will automatically extend the bidding time by 10 minutes in order to allow other bidders the opportunity to bid.”
Buyers: “When can I bid on the property?”
Agent: “ou can bid on the property anytime from the beginning to the end of the bidding process. There is a countdown timer on the website that shows the remaining time and also the date and time when the bidding ends is displayed.
The bid increments are $1,000, but you may place your bid up to the “maximum amount” that you are willing to offer on the property. The system is designed to raise your bid in increments of $1,000 above the last bid placed only.
Buyers: “How does the Buyer’s Premium work? Do I have to come up with additional funds on top of the sales price?”
Agent:No, you don’t have to come up with any additional funds. Buyer’s Premium is included in the sales price. Winning bid + Buyer’s Premium = Sales Price.
Buyers: “What happens if I am the winning bidder?”
Agent: “You have 24 hours to provide the purchase contract. If you fail to provide the purchase contract, the Seller has the right to accept any other offers. Your Agent should write and submit the offer for you. If you don’t have an Agent, I will be more than happy to do it for you. After the Seller’s acceptance, everything follows just like in any other regular sale. Buyer will go in escrow with all Buyer’s contingencies and inspection time frames.”
Buyers:“I would like to submit an offer right now without participating in the bidding process. Can I do that?”
Agent: “If there are no approved Buyers, you can submit an offer and if the Seller will accept it we can stop the bidding process. If there are approved Buyers waiting to bid on the property, we can not stop the process. You will have to bid on the property to be fair.”
Buyers can approve themselves by credit card which is instant approval. You as the Agent in this situation don’t have to do anything.
If a Buyer is requesting to be approved without using the credit card, the Agent will receive an email triggered by the Buyer with a link requesting manual approval. In order to approve the Buyer, the Agent has to follow the link and click the “Approve” button. Prior to manually approving a Buyer, it would be wise to ask for pre approval letter from a lender, proof of funds, etc…
Once approved to bid, the Buyer will receive an automated email notifying the Buyer that he/she is approved to bid on the property.
- Terms & Conditions for the subject property should not be changed after any bidder has registered to bid. If the Terms & Conditions need to be changed because of an error and or request from the Seller, all registered bidders have to be notified in writing of any of the changes and can cancel their bid if they choose to.
- Price enhancing tactics are illegal. In the auction industry they are called: “Straw Bids”, “Phantom Bids”, “Puffing”, “Trotting”, etc…
Any agent can bid for a Buyer as long as they have written instructions from the Buyer to do so. NEVER use straw bids to raise the price and do not conduct Test Bidding on any live listing.
As a “homebids” certified Agent your interaction with Buyer’s Agents is extremely vital to marketing and selling your listing just like in a traditional sale.
Our advice is to be friendly and cordial with all Agents. Remember that most Agents aren’t familiar with the “homebids” process. They could be confused and at times argumentative. This reaction should be expected, as this is something different than what most Agents have been accustomed to.
We encourage you to explain in simple terms of how the buying process is transparent with “homebids” and how it works.
When you are hosting an open house, you won’t usually have time to explain to Agents how the bidding process works in detail because you should be attending to Buyers. However, below is a script on how you should address Agents that want to ask you for more information.
Buyer’s Agent: How does the offer process work?
homebid<’s Agent: Very simple. Everything is transparent. You or your Buyer can bid on the property online. Just register and start bidding. Once a winning bid is selected then it’s like a normal transaction. You prepare a purchase agreement for the parties to sign and then escrow is opened etc…
Buyer’s Agent: How do I get paid?
homebid Agent:Just like in any regular sale. If property is posted in MLS for instance, the 2.5% for example is what you’d get based on the sales price.
Buyer’s Agent: Why is there a Buyer’s Premium and what’s it for?
homebid Agent: The Buyer’s Premium is the commission paid by the Buyer which includes the 0.5% due to “homebids”. The total Sales price is the bid amount + the Buyers Premium
Buyer’s Agent: So does the Buyer have to cut a separate check for the premium?
homebid Agent: No, the good news is that it’s all included in the sales price.
Buyer’s Agent: Why would anyone sell their property this way?
homebid Agent: Well it’s actually the fair way to do it so everyone has a level playing field and there’s transparency. Buyer’s and their Agent knows exactly what price another Buyer is willing to pay. This stops the games and backroom deals that happen a lot in our industry.
Buyer’s Agent: Do I have to also write an offer when I submit a bid?
homebid<’s Agent: No, you only create a written offer once your bid has been selected as the winning bid.
Buyer’s Agent: How does the Seller actually choose an offer?
homebid Agent: The Seller selects the highest & best offer out of the top bids received on the property. The only difference is that all Buyers get a chance to have their bid considered and sometimes that isn’t the case in traditional sales.
Buyer’s Agent: Can a Seller or Buyer sell or buy through “homebids” without an Agent?
homebid Agent: Great question. The truth is that “homebids” requires each party to have Agent representation. So it’s very plain & simple, each party has to have an Agent.
Buyer’s Agent: Do I have to be a “homebids” Certified Agent to bid on behalf of my Buyer?
homebid Agent: No. It’s very simple, just register, get approved and bid.
Buyer’s Agent: Why is the list price so low? Is it a foreclosure?
homebid Agent: No, it’s not a foreclosure. We believe in having a starting bid price and letting the market dictate based on transparency what the final price will be.
Buyer’s Agent: What’s the advantage of buying a house through the “homebids” process?
homebid Agent: Well there are a lot of advantages. Time is critical. You as a Buyer’s Agent don’t have to write up an offer for a client who might want to try and low ball & have you write an offer for the sake of trying. This is because you can see and share with your clients what other Buyers are bidding and guide them if they want to proceed. If they don’t want to bid then you just saved time effort and energy on not having to write an offer or it might inspire their competitive spirit to go above their conservative budget and get the house of their dreams. For lots of Agents it’s frustrating when submitting an offer for a home where there’s multiple offers and you go through all of the work and then you don’t get any response from the listing Agent.
With “homebids” you always can see what the highest bid is so you know what offer price you need to be at in order to be the winner. Also a Seller can be confident that the offer they received for their home is a clear indicator on what the property is worth on that particular day.
With proper marketing and the home readied for sale along with transparency, a Seller can be rest assured that the RMV (real market value) for their home has been reached.