RealtyBid.com offers a great tool to accelerate sales in a slow moving development. Those programs can include a small builder or developer that wants to offer a few units, or a large, national builder that wants to offer the remaining units in a development, or a group of developments. To design an effective marketing program for a builder or developer, a RealtyBid representative will meet with the builder and define their goals. Sometimes the goal will be an inventory reduction type sales event. Other times the goal will be a complete sell out of the remaining inventory. As with traditional sales, there are many factors that will affect a successful program such as current sales trends, recent sales history, market conditions, supply and demand, marketing activities, price points and discounts offered.
RealtyBid’s management team has a vast amount of experience with the sale of residential subdivisions, condominium developments, PUDs and development land tracts. Our team has sold thousands of these type properties with great success.
Here are some examples of recent builder events.
Recently, two of the nation’s largest publicly traded home builders contracted with RealtyBid to sell remaining housing inventory in California, Arizona and Florida. They selected RealtyBid’s platform to sell their homes for the following reasons, 1) Marketing Exposure – they felt that RealtyBid’s platform allowed them to reach out to buyers across state lines and into other countries, a strong audience for the properties, 2) Online Bidding – In a down market, with so much negative press about builders, the builder felt the RealtyBid online bidding platform was a better choice to uphold and protect their public image over other types of on-site promotions. It indicated to the market that that they were willing to use innovative, high tech sales methods to move their inventory, and 3) Timing – they were interested in a program that would allow them to sell their properties, without a negative image being cast, with massive marketing exposure, but still within a controlled time period. RealtyBid had the only program that could do all three things effectively.
The following is a summary of those marketing and disposition programs:
The builder offered 16 homes valued from $388,000 to $1,400,000 in a 21 day online bidding event. At the time, the local sales office was typically attracting five visitors per week through traditional advertising. During the 21 days, the properties received over 24,000 page views and generated over 220 visitors through the local sales office located in a model home within the subdivision. Over 150 people registered to bid on the properties. The conclusion was 14 of 16 homes sold for an average of 88% of the list price. The homes averaged 9 bidders per property. The largest home with an asking price of $1,395,000 sold for $1,100,000. The seller had not made a sale in the subdivision in over 4 months prior to the RealtyBid online marketing campaign.
Summary: 14 of 16 homes sold in 21 days for $7,466,000 at an average of 88% of list price.
A builder chose to offer 17 homes valued from $524,900 to $648,900 in a 10 day online bidding event. When RealtyBid accepted this assignment, this project had been “moth-balled” by the builder. There was no sales office, no sales staff and no model homes. There had not been a sale at the project in over a year. RealtyBid made specific recommendations prior to starting the campaign. These included 1) laying sod on units currently without grass, 2) placing construction vehicles in various places within the subdivision to create a sense of activity, 3) create a model home, 4) hold a broker/agent orientation at the property with food to explain the online bidding process and re-introduce the real estate community to the property. These steps would give prospective purchasers a sense that the community was alive and well. The plan worked flawlessly. During the 10 day bidding period, the properties received over 6,000 web page views and generated over 450 visitors through the local sales office located within the subdivision. Inquiries came from all 50 United States as well as Canada, England, Ireland, Germany, Australia, China, Argentina, Columbia, Peru, Spain, Mexico and India. The builder’s team was amazed at the activity. Over 200 people registered to bid on the properties. The conclusion was 17 of 17 homes sold for an average of 91% of the market price. The homes averaged 7 bidders per property.
Summary: 17 of 17 homes sold in 11 days for $7,463,000 at an average of 91% of market price.
The builder offered 16 homes with an average value of $612,000 in a “3 day only” online bidding event. The homes were marketed prior to the bidding for 15 days. During the marketing period, the properties received over 4,000 page views and generated over 350 visitors through the local sales office located in a model home within the subdivision. Over 100 people registered to bid on the properties. The conclusion was 16 of 16 homes sold for an average of 89% of the list price. Inquiries came from across the United States as well as Canada, England, Germany, Australia, China and India.
Summary: 16 of 16 homes sold in 18 days for $7,855,000 at an average of 89% of market value.
This property was sold for an individual investor who acquired the property from the government for a price of $1.5 million through private negotiations. Within 90 days of owning it, the investor decided to sell it through a high profile bidding event. It sold for $2.6 million netting him a $1.1million profit.
This property was sold for a private investment group who acquired it from a developer who was distressed. Over 200 bidders participated in the sale and 22 of 28 units were sold.
A Private Mortgage Insurance Company owned these properties in Beach Mountain, North Carolina and Hilton Head, South Carolina. Both properties were marketed and sold at auction just days apart. Both auctions were complete sell outs.
This project was sold for one of Columbia’s most well known and respected development companies. It included 18 units remaining from 24 total units on the river in downtown Columbia. Over 150 people registered to bid and the project was a complete sell out at the end of the process.
RealtyBid’s team sold 35 land properties for a government agency located across Southern California. The sales event was conducted in Los Angeles. All properties were sold to a spirited audience of investors and speculators. The sales generated over $75,000,000 in sales.
RealtyBid’s team sold 42 land properties for a government agency across the state of Texas. Many of the properties were partially completed subdivisions, or final units left in a subdivision. Several of the properties were PUD’s or raw development land. The sales generated over $58,000,000 in sales.
RealtyBid’s team sold 10 land properties located in Northern California. Most of the properties were final units left in a subdivision or development land. Approximately 30 bidders participated in the sale for which all properties were sold for over $18,000,000.
The RealtyBid team sold a high demand land parcel which had over 100 platted, permitted lots waiting for a buyer to begin building houses. Thirty builders and investors registered to bid on the property. The property was appraised and on the market for $12.5 million. The bidding started at 8 million and never slowed until it reached 12 million. The final sales price was 14.2 million.