Dayton Condo 5-Day Sale Auction Update

Hi Everyone:

I wanted to provide an update regarding the recent 5-Day Sale of my condo. The condo is under contract to be sold, and scheduled to close within two weeks.

For some background, intermittently for the past five years (between tenants), my property has been listed with no less than four different real estate agents at prices that each recommended. We had some interest, but no offers. I was curious as to what the property was worth. After the credit bubble of 2008, the mix of private-party sales and foreclosure sales in the area showed that prices were all over the map. I had no idea what to ask for the property. The last thing I wanted to do was to overprice it.

I contacted Kyle and his team using the form on his website. Kyle called me right away, and described his variation of the 5-Day Sale method outlined in the book “How to Sell Your Home in 5 Days”, by Bill Effros. Kyle’s adaptations included a longer marketing period and a website that is central to the process. This became key during the bidding process, when one of the bidders expressed his like that the bidding is open, honest, and transparent.

I liked Kyle’s plan, because it afforded me control over the marketing and sale process, as opposed to the wait-and-see approach of picking an asking price and listing the property for sale with an agent. I felt that I could have a positive affect on the outcome of the sale.

Kyle and his team started immediately, and we came up with a marketing strategy to engage the market using advertising in the local daily newspaper, local weekly suburban newspapers, flyers, and on the Internet. We executed this plan over the course of several weeks. It was a big effort, but it was worth it.

I received several inquiries, and on the weekend of the inspection, there were a few visitors and two interested parties who left bids. Instead of conducting the round-robin bidding process, under Kyle’s guidance, I engaged each buyer separately and asked each for his best bid, rather than bid him against each other. I accepted the best bid, which was an all-cash offer. As part of the plan, I hired a local Realtor to be a transaction broker who wrote the contract. She told me that she has seen many languishing condo listings, and seemed impressed that we had a firm offer so quickly.

I am extremely happy with Kyle, his team,, and the entire process. Kyle’s variation of the 5-Day Sale method was able to do what the listing process did not, which was to generate offers from legitimately interested buyers. The process gave me much more information about the market than I had in the last five years. The fact that I liked the negotiated sales price, which lead to a signed contract, was icing on the cake. I recommend Kyle and his team to anyone who wants guidance from a consummate professional with experience engaging the market and conducting numerous, successful 5-day style sales.

Jody Scoville Client
October, 24, 2010

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Owner’s Perspective on Hunter’s Glenn Condominums

As I drove into the main entrance of Hunter’s Glen at dusk, I turned left in front of a large, old tree that is the centerpiece of the landscape. The way it was lit from below reminded me of some of the well-manicured theme parks I visited as a child. The night was warm, and with the car windows down, I heard faint laughter coming from the pool and clubhouse area as I slowed. The sky to the west was dark with many stars. The announcer on the radio said that the International Space Station would be visible to the northwest for a few minutes at 9:18 that night.

I parked the car just outside of the garage. Later, I would be going down the street to the nearby United Dairy Farmers convenience store for ice cream. I stood on the patio and waited for the space station to appear. I was glad to have a condo that was both on the edge of the community, facing open fields; and close to the pool.

I realized that what I like about Hunter’s Glen is that it reminds me of being on vacation as a child. It is like a park or resort. The walking path is picturesque, like the trails through the sawgrass in Everglades National Park; there is an ice cream parlor nearby, like at Fisherman’s Wharf in San Francisco; even the smell of hot asphalt reminds me of waiting in line for the roller coaster at King’s Island amusement park as a child.

I know having the condo is not an actual vacation, but as an adult, there are several things that I appreciate about the condo. I appreciate that I don’t have to mow the lawn in 90-degree weather, rake leaves while the Ohio State Buckeyes play, clean out the rain gutters in the spring, or shovel snow in the middle of winter. It is care-free living, as the real estate agents say. I like that the condo is in the Northmont school district. I like the fact that I-70, the airport, and Englewood Reserve (excellent for biking), are minutes away. Finally, I like that driving down State Route 49 to U.S. 35 leads me to the heart of downtown Dayton in minutes.

The International Space Station finally arrived as a blinking pinpoint of light to the northwest. It was an interesting thing to see. I wondered what Dayton’s native sons, Orville and Wilbur Wright, would think about it. Standing in the dark looking up made me think of being in line at Walt Disney World’s Space Mountain as a child. The difference now is that I am grown up and have a wonderful condo. Back then; it required an E-ticket to ride Space Mountain. Today, the condo is the “E-ticket”.

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What’s Right about the Real Estate Auction Model

What’s Right about the Real Estate Auctioning Business Model?

By:  Kyle Cascioli –

December 22, 2008

 As a follow up to my earlier discussion about “What’s Wrong with the Real Estate Auction Business Model,” let’s talk about what the advantages are of pursuing this real estate sales property exit strategy. 

By definition, auctioning “best practices” produce market offers (prices) at specific (static) points in time (date).

In my earlier piece on “What’s Wrong with the Real Estate Auctioning Model?” I explained what I believe is wrong with the traditional property listing model.  In the traditional listing model, sellers typically overprice their property and passively wait for the market to engage them. National Association of Realtor studies consitantly report that over 80% of sellers dictate the listing price of their home to their agents prior to listing.  This implies that less than 20% of all real estate agents are either trusted regarding their pricing recommendation or disagree with their clients perception of value.  The apparent acquiesence of real estate professionals to sellers regarding the value of their homes (listing price) in the majority of cases is fine in a good market, but disasterous in a poor one.  This is even more exacerbated in this downcycle by the unprecedented (structural) economic events (Circa 2008), and those events debilitating effect on residential property values in both the short-term and foreseeable future.

This approach does neither the client nor agent any good as the property languishes on the market, as both client and agent chase the market down through price reductions in utter frustration (Circa 2008).  By the way, this traditional real estate listing pricing model is known as a “Dutch Auction,” an auction where the seller starts high and takes the first lower acceptable offer.

In my opinion, the biggest single advantage to the auctioning approach is that it produces “true market” offers more quickly, regardless of market conditions.  The auctioning approach changes the dynamic of making an offer to the favor of buyers.  Instead of a seller pricing a property high and challenging buyers to “make offers,” auctioning allows the seller to price low and empower buyers to challenge them (sellers) to “accept their offers.” 

This is a dynamic that accomplishes two things.  One it creates a comfort zone for buyers to engage sellers directly and “make their best offers” for the property without feeling as though they are wasting their time or insulting the seller.  Two, auction methodology also intrigues and attracts the “fringe” buyer that is capable of purchasing but is perhaps not actively looking at properties (and likely not represented).

Fee structure aside, the auction model can increase the likelihood of a direct sale to an unrepresented buyer and potentially reduce transactions fees (commissions).  The auction process also compresses the property sales cycle, flattens the lines of communication between buyers and sellers, produces more qualified buyers than the traditional listing process, increases sellers’ returns on their advertising (ROI), and is a true indicator of a properties market value.

Let’s discuss these advantages individually.

First, the auction models “proactive” marketing approach targets the consumer directly in addition to the real estate brokerage community.  Whether it is that those who attend auctions  

are more likely to be direct buyers (unrepresented), the consumer targeted advertising campaign promoting the auction, the current resistance or the Realtor community to embrace the auctioning model as a legitimate sales mechanism, or a combination of all of the above, most bidders today are unrepresented by agents (they have attorneys).  In these cases, the seller saves money on fees and can be more competitive on sales price.  Thus, another advantage to the auction/5 Day Sale model is that it is more likely to result in a direct sale.   

Second the auction process compresses the property sales cycle because the auction        is held on a specific date.  The property is intended to be sold on that date, thus creating a sense of urgency for the interested buyers.  When compared with the traditional real estate “Dutch Auction” listing approach described above, the auction model generates a timely sale, which allows the seller to benefit by avoiding additional carrying costs, exposing themselves to increased market pricing risk, and a shrinking buyer pool, given our deteriorating national economy and tightening credit at the retail mortgage levels.

The theory of the “Time Value of Money” applies to real estate transactions as well as cash.  In a market such as ours (Circa2008) a sale today is worth more than a sale tomorrow for most sellers.

Third, the auction model – while relying upon the support and counsel of real estate/auctioning professionals – promotes direct dialogue between sellers and buyers.  This facilitates the constructive exchange of information (unfiltered by intermediaries), and the process is a more consumer friendly one from the buyers perspective.  This process also allows sellers to benefit by having “the market speak directly to them,” as bidders share what they like about the home, do not like, and what competitive properties they may be considering.  It’s one thing for the sellers’ agents to “debrief” clients after getting showing-feedback from a buyers’ agents on a showing they (sellers’ agents) often don’t attend, but it’s very illuminating for a seller to get direct feedback from buyers in real time.  Seller’s gain near perfect information regarding bidders’ interest, and often, a rapport develops between buyers and sellers during the inspection process that can be helpful when finalizing the terms of a sale.

Fourth, those attending auctions under formal auction models (where bidders are required to post “good funds” earnest monies to be eligible to bid), or less formal auction models such as the 5 Day Sale, those participating in real estate auctions are usually financially qualified and more likely to be all-cash buyers.

Fifth, when run correctly the auction model is the best real indicator of a given properties true “market value” at a given point.  Appraisals, comparative market analyses, brokers’ opinions of values, they are all “well-informed guesses” based on historic sales data and a given real estate professional’s market perceptions and value opinions.  The auction model identifies a pool of buyers at a specific date (static point in time) and then facilitates their (buyers) ability to compete for the subject property.

Sixth, the auction format increases seller’s return on investment (ROI) on his/her advertising dollar.  In a soft market, all properties become commodities (with many substitutes) and a seller’s given real estate ad that advertises prices near or above the market gets lost in the crowd of similar real estate offerings, regardless of advertising medium (print, online, etc.).  The fact that the auction format begins with a significant “discount-to-market” via “starting bid price” distinuishes the property from all of its competitors, garners viewing, gets clipped by potential buyers, has increased shelf-life, and is therefore more effective in generating market interest.  If the advertising is more effective in generating above market interest based on pricing, then the return on investment (ROI) is greater than traditional real estate advertising with offerings priced at or above market.

In closing, anyone considering pursuing an auction or 5 Day Sale strategy for his/her home should weigh the “cost-benefit” of conducting that sale, given both the price point of his/her  property and price expectations.

For more information on our auctioning and 5 Day Sale online real estate auction platform resources, expertise, and consulting, visit our websites at:  for sellers and … for agents.

© 2008Barrett Associates, Inc     All Rights Re

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What’s wrong with traditional auctioning Models

What’s Wrong with the Real Estate Auctioning Business Model?
By: Kyle Cascioli –
December 20, 2008

One day several years ago while I was director of real estate services for a “start-up” residential real estate e-commerce venture that failed, a key investor in the company asked me the question: “How do I sell a home for free?”

Being adjunct faculty in the real estate department at the business school of a prestigious university, a veteran of both the commercial and residential markets, and a frustrated member of the National Association of Realtors (NAR), I surprised myself by having to stretch for an answer. In a flash it came to me … and I replied to the investor that you can “auction the property.”

After all, at a traditional auction the seller pays the auctioneer to promote and manage the auction process, but no fees or commissions are usually paid to the buyer or the buyer’s representative(s) if he or she has one, which is not always the case.

Along with my role at the time in helping to “shape our real estate e-commerce business model,” and interest in verifying my naïve assumption that auctioning is a way to sell real estate for free, I decided to research the subject further.

I came across a book entitled “How to Sell Your Home in 5 Days (Bill Effros; Workman Publishers, New York), a “consumer-centric” work targeting the “do-it-yourselfer (For Sale By Owner).” The book does an excellent job in both explaining the process of auctioning and the fundamentals of running an auction on your home in 5 Days in order to get buyers to competitively bid on your property.

After reading the book in 2007, I decided that it would be a good exercise for my students to combine our study of real estate theory at the university with contemporary real estate practice. I solicited student volunteers to help document a 5 Day Sale/ Home Auction. We found a seller in Denver online who was in need of help in conducting his auction, and we offered to help in exchange for the right to videotape and document the effort as a case study. This auction/5 Day Sale was successful and you can view the video and review our case studies at: .

My curiosity peaked; I continued to research auctioneering industry practices and even joined our state auctioneering association. While not all auctioneers sell real estate, those that do must hold real estate licenses in their given state of operation. While all states require real estate practitioners to be licensed (and therefore regulated), not all states require that auctioneers be licensed.

Auctions can take many forms. On the one end of the spectrum, there is the “absolute auction” that results in a sale regardless of price as long as the minimum disclosed bid level is met (assuming there is one). On the other end of the spectrum, there is the auction with an “undisclosed bid.” In each of these approaches, the point is to start your bidding at an either artificially low – or minimal acceptable – price point so as to engage as many potential buyers available in a market at a given point in time, and then

to bid those potential buyers competitively to find the best buyer for the property. Best buyer is usually defined as most competitive bidder that meets or exceeds the seller’s minimal acceptable price (reserve). By definition, competent auctioning produces market prices at a static point in time.

I have since been engaged to assist and document multiple real estate auctions and/or 5 Day Sales, all of which have been successful, but not all of which resulted in the sale of the property at that time. That said, they all provided “perfect market” feedback directly from buyers to the sellers regarding the given properties’ features and those buyers perception of market value. For the record, I believe the auction methodology is a valid and legitimate real estate sales strategy. I am particularly impressed with the fact that auctioning is a much more “proactive” sales strategy than is the traditional listing of real estate, which I believe to be a passive sales strategy.

The question then becomes, is auctioning a cost effective method for selling real estate when compared to traditional methods of selling real estate? The fact is that it takes time, money, and effort to run an auction, sell the property yourself, or list it with an agent.

Most auctioneers will charge a significant auction marketing fee to cover promotional costs and their time. Additionally, most auction firms charge a “buyers premium” that the buyer pays net of their offer. This means that while the seller pays no fees directly, the buyers’ offers are “net” of any auction and buyer’s agent fees. Auctioneers’ “buyers premiums” for real estate transactions range from 5% to 10%, depending upon whether the bidders are represented by real estate agents or not.

We already know what’s wrong with the traditional real estate listing model where we start by overpricing our property and listing it. This approach does neither the client nor agent any good as the property languishes on the market as both client and agent chase the market down through price reductions in frustration together, (Circa 2008). By the way, this traditional real estate listing pricing model is known as a “Dutch Auction,” an auction where the seller starts high and takes the first lower acceptable offer.

So … what then is wrong with the auctioning model?

In its current form, the traditional auctioning model has the potential which to leads to “conflicts of interest” between sellers and auctioneers, and they are just as expensive as – or more so – than the traditional listing of real estate. The expense is often justified, given the “time value” of a sale, but if that sale involves an auctioneer producing a buyer represented by an agent, then the fees – while paid by the buyers – decrease those buyers’ effective purchasing power net to the seller, and the seller achieves a lower effective sales price.

Whether it it’s an auction or a traditional listing the buyer always bears the cost of fees, because they are paid for from the proceeds of sale.

Is there an alternative auctioning business model for sellers and agents alike?

Yes … through our online real estate auction platform resources, expertise, and consulting.

Check out for sellers and for agents.

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