Selling your home by auction!

Imagine for a moment that you have been blessed with the task of having to be in charge of transitioning your 87 year old Mother.

Your Mother has been showing signs of Dementia, lives in the house that she and your late Father have lived in since 1972.

Your brother lives 100 km away but his business sees him travelling 7/12 months of the year and he’s really not much help on a good day.

Your Mother is house proud and doesn’t believe in staging or upgrading and improving her house because there’s nothing wrong with it! In fact, the last time anything was really done was the aluminum windows about 20 years ago and the re-glazing of the bathtub and tiles.

She is not tech savvy and feels that today’s kids have a thing or two to learn about respect and saving money.

She loves watching Coronation Street on her CRT television, VCR movies and protects the furniture with doilies. She cares for her 3 cats and only has one original friend left on the street. She knows there’s hardwood on the floors but likes the warmth of the green carpeting and is proud of all the family photos covering every square inch of wall space throughout the house. Heck, she might even have those matching fuzzy toilet seat covers and mats.

Have we painted the picture? Is this you or someone you know?

You’ve managed to find Mom a nice place that she can be cared for and interact with others but she can’t move in for 3 more months “as they wait for it to become available!”. Now you need to sell Mom’s house so she can retire with the substantial windfall from the location of the family home and pay for the new residence.

You interview 3 REALTORS®. They all tell you how today’s buyers are very keen on properties that are showroom condition. They offer that you perform some upgrades (kitchen, baths, remove carpeting, new paint, new Stainless Steel Appliances, etc). Then they want all your Moms old stuff gone and require the house be staged. Then photos, then open houses and they will hold offers to create a multiple offer scenario. At this point you’re crying inside knowing full well ‘This all falls on your shoulders!’. You also need to pay for it until the house is sold. You now realize Mom will need to come live with you while all of this is being done – not to mention having to explain to MOM that you are about to clear out her house and that no-one wants her ‘old stuff’. Can you see a problem here?

We, at The LifeStyle55 Network are MASTER Accredited Senior agents. We focus on the 55+ clientele and their parents! This is a scenario that we see often. We offer to manage these concerns and offer solutions so that our clients can better cope with the transition. We were faced with this type of scenario and partnered with a company called Transition Squad. Working with The Master Accredited Senior Agents, Transition Squad developed a program that would allow a seller to offer their property for sale by ON-LINE AUCTION! As is! While offering the Buyer comfort in knowing that no games are being played in managing several offers for the property.

How it works:

  • Seller and Master-ASA REALTOR® work on establishing a current market value.
  • The seller is given the opportunity to have an Independent Property Appraisal conducted in order to satisfy themselves of the fair Market Value.

As in many listings, a lower than market value is posted while holding offers until a certain date. This is called ‘Creating a Multiple offer scenario’.

  • The price is then suggested as ‘What is the lowest price you the Seller would sell the property for?’ The Auction asking price (reserve) has now been set.
  • The MASTER ASA REALTOR® then performs the tasks necessary to create a listing and promote it. Transition Squad also performs marketing for the property by means of advertising, signage and direct invitation to current and past registrants of auctions.
  • 3 showing dates are set. Typically Transition Squad will be performing a content sale. This content sale is marketed and is included in the first ‘showing date’. This does 2 things. 1. Begins to clear out items the family wants sold or removed and 2. Creates a buying frenzy on the property. Offers are being received ‘ON-LINE’ during these weeks of showings with an ‘end of auction’ date and time being set.
  • Interested buyers are free to bring family and representatives to these showing dates and request to re-visit at the 2 other scheduled dates.
  • Buyers then register on Transition Squads ON-LINE auction secured site. All details can be found at www.Transitionsquad.com
  • Buyers registered, then enter the required details including ‘the highest price they would offer’. This is the safety factor for a Buyer – a ‘PLUS INCREMENT’ is pre-established. This plus increment allows a buyer to offer a high value, basically out bidding other bids but if they win, their actual offer is calculated as whatever the 2nd highest offer was PLUS the Increment. Therefore paying less than their highest bid (please read all details before placing any bids). The winner is then taken through standard Real estate transactional paperwork and legal requirements.
  • Seller benefits: Seller is less stressed, safer, isn’t inundated with today’s stressful real estate procedures, contents are being sold, they set their price, didn’t need to upgrade –spend money renovating or navigate the difficulties of open house, unlocked front doors, strangers walking thru or calling at all hours. They set the rules!
  • Buyer benefits: Buyers are comfortable knowing they paid fair market value and didn’t over pay or were ‘forced’ to over pay. Property is left in a condition that they can customize with the finishes and colours and textures they want.
  • Family benefits: A solution was offered to assist the family in navigating the already stressful task of a Senior transition including, Real estate, content, legal and saved money and time!

On-line auction are not just for Seniors, however it is an area of expertise for Paul Cutajar* MASTER-Accredited Senior Agent and founder of The LifeStyle55 Network.

Paul may be contacted at:    paul@thelifestyle55network.com

www.TheLifeStyle55network.com
* Sales Representative with Re/Max Realty Specialists Inc. Brokerage. Specialized agent for Transition Squad – Online Auctions.

These tips and scenarios are that of Paul Cutajar. Founder of The LifeStyle55 Real Estate Network, focused on implementing  programs for Mature clients . Combining Master Accredited Senior Agents  REALTORS®, Financial Advisors, Professional Care givers, Sell n Stay programs and Affordable Housing for Seniors.  www.TheLifeStyle55Network.com