Marcus Real Estate
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Low Unique Bid AuctionS... COMING SOON IN 2010

The Lowest Unique Bid Auction format is a dynamic program that provides the Seller an opportunity to generate more income from the sale of their home and a Buyer an opportunity to own a home they otherwise could not afford.

How the Listing Works: Homes are listed online in an “upcoming auction” status and displayed with a virtual tour, 25+ still shots, survey, pest inspection, title, home inspection, appraisal, seller’s disclosure, community information, expense details and contract for purchase. Buyers can tag a home they would be interested in purchasing. Once a home has a pre-determined number of tags (example 10K) the home is moved into “current open auction” status. At this time the buyers can purchase a seat for the auction at a pre-determined price (example $100). Once the pre-determined numbers of seats are sold (example 10K), the auction closes to the public and goes into a “pending live status”. In this case we would have collected $1M in seat reserve fees therefore the property can be purchased from the seller at the higher value and all liens paid off.

Note: Because the home is free and clear now, we can proceed with the Low Unique Bid Auction format versus a High Bid Auction format.

How the Low Bid Auction Works: The bidders that have purchased seats are then notified of the date and time of the auction. Once the auction goes “live”, those bidders can bid within a pre-determined low bid range (example from one penny to five hundred dollars) for 30 minutes. Bids are placed in one penny increments, entered online through the member’s live bidding panel on the member’s home page and are sealed to the public. The criteria to be the successful bidder in this auction format are to have placed the “lowest bid” that is “unique” or unmatched by any other bidder at the close of the auction. So if a member places a bid for one penny, and another member does the same, the bid amount would be the lowest, but no longer “unique” within the auction. The member is constantly updated on the status of their bid as the auction progresses. This auction requires a very strategic approach to be the successful bidder. Upon the close of the auction the “lowest unique bid” amount becomes the sale price of the home (example $2.22).

The Closing: The new buyer has 24 hours to get their Lowest Unique Bid into escrow and 30 days to perform any and all final inspections and close on their new home. Once again, the fees collected for the reserve seats, pay for the cost of the home and the service provided. All closing costs are paid by Marcus Real Estate and taxes, insurance, pest care, pool care, lawn care and home warranty are paid for the first year for the new homeowner. Each home will be equipped with a “green package” valued at $5,000.00; and for a seat value of $10 more, a new car is placed in the driveway, a boat in the dock and a selection of three different furniture packages to choose from. Marcus Real Estate will also reimburse the new buyer for any travel expenses attained through the buyer’s personal inspection and attendance at closing up to $5,000.00.

The Benefit to this Genuine Auction Format: There is no “winning tax” applied at the closing. The new homeowner would be responsible to the IRS for capital gains “only when they sell the home and realize the gain”. 

Remember, once the seat reserve is met, all homes listed in this program are then purchased outright for “the mortgage, the appraised value or what the owner originally paid for the home, whichever is HIGHER”.  Seller’s closing costs can be included, if needed. All homes are then auctioned to the Lowest Unique Bidder and sold “Free and Clear of all Liens” under $500.

I Have Been Working Behind the Scenes: for two years on this program. Our beta prototype is complete and we have run 30 successful mock auctions whereas the last $500K home sold for $.36. We are currently enhancing the program for statewide expansion and look forward to a 2010 public launch of this software application. I hope you can join me, I think we will have a blast.

For more information on how this Home Auction Format can work for you please contact me.

Maureen E. Marcus

Marcus Real Estate

Licensed Real Estate Broker

Sarasota, Florida 34233

Cell 941.445.2661

Fax 941.922.0472

Maureen@MarcusRealEstate.com 

 

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