The Real Estate Blind Bid Provocateurs
Welcome to the "The Real Estate Blind Bid Provocateurs," a groundbreaking podcast produced by TruHome Value, the pioneers of transparent open bidding in residential real estate. This podcast is a bold stand against the opaque and frustrating process of blind bidding—a system that has long plagued the real estate market with uncertainty, mistrust, and manipulation.
Each episode dives deep into the heart of why the traditional method of buying and selling homes is not just outdated but inherently flawed. Listeners will hear firsthand accounts of the stress and disillusionment from buyers who have navigated the blind bid maze, often feeling like they're bidding in the dark, competing against invisible rivals, and pressured into making rushed decisions that lead to regret, even when they win.
But "The Real Estate Blind Bid Provocateurs" is more than just a critique; it's a mission-driven show that shines a light on a better way forward. With TruHome Value's transparent open bid platform, we explore the transformative power of visibility in real estate transactions.
Join us on "The Real Estate Blind Bid Provocateurs" as we challenge the status quo and advocate for a real estate market where every bid is open, every process is clear, and every participant can bid boldly, backed by the confidence that only comes from true transparency. Say goodbye to manipulation and hello to the future of real estate, one transparent bid at a time.
The Real Estate Blind Bid Provocateurs
Episode 4: The Home Seller's Advantage
Episode 4 of "The Real Estate Blind Bid Provocateurs," titled "The Seller's Advantage," delves into the merits of a transparent, open bidding process in real estate transactions, arguing against the conventional blind bidding system. Hosts James, KieAnn Brownell, and Kari Abt discuss how transparency not only fosters trust between sellers and buyers but also tends to yield better financial outcomes for sellers.
The episode opens with James condemning the traditional opaque bidding system for fostering mistrust and manipulation in real estate. He then invites a discussion on the integrity that a transparent bidding platform introduces into the selling process. KieAnn immediately challenges the misconception that blind bidding secures the highest prices for sellers, noting the frequent occurrence of buyer's remorse in such transactions. This remorse often leads to contract terminations, stigmatizing the property and disadvantaging the seller.
Further illustrating the benefits of open bidding, James likens the process to live charity auctions, where the dynamic atmosphere and visible competition drive prices up, often significantly beyond expectations. Kari adds a personal touch to the argument, recounting experiences from estate sales in North Dakota, emphasizing how visible competition ignites a buyer's determination to win, often leading to higher bids.
The discussion highlights that transparent bidding not only elevates property prices but also decreases the likelihood of deal fallouts due to buyer's remorse. The hosts elaborate on how open bidding creates a level of trust and integrity in the transaction, allowing sellers to communicate their priorities more effectively, such as possession dates which can be as crucial as the price itself.
KieAnn clarifies a common misconception regarding list prices, explaining they are not definitive markers of market value but educated guesses subject to the laws of supply and demand. In a market characterized by low supply and high demand, competition naturally elevates prices, debunking the notion of 'overpaying' in a competitive bidding scenario.
Concluding the episode, James teases the next discussion which will focus on the advantages of the transparent bidding process from the perspective of selling agents, hinting at the broader implications of transparency for improving trust and efficiency in real estate transactions. The episode wraps up with an invitation for listeners to share the podcast and a reminder of the show's presence on YouTube, reinforcing the message of bringing trust, transparency, and integrity to residential real estate.
If you believe in our cause and found value in our discussion, please like, follow our show, and share it with anyone who has experienced or is curious about the absurdity of the blind bid process. We're eager to hear from you and continue this conversation. Connect with us on YouTube, LinkedIn, and Instagram @truhomevalue. Let's journey together towards a more transparent, trustworthy, and fair real estate market.
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Episode 4
[00:00:00]
James: You are listening to the Real Estate Blind Bid Provocateurs, a podcast, taking a bold stand against the opaque and frustrating process of blind bidding. A system that has long plaqued the real estate market with uncertainty. mistrust and manipulation. This podcast is a production of TruHome Value the pioneers of transparent open bidding in residential real estate.
Hello everyone. Welcome back to The Real Estate Blind Bid Provocateurs. We're on Episode 4: The Seller's Advantage. I'm back here with my co hosts, KieAnn Brownell and Kari Abt.
James: So let's get into it. What is it about a transparent, open bidding platform that brings integrity to the selling process?.
One thing I want to just continue to drive home, and I started this in episode one, and it's just so important to me, James, is that there is a huge misconception in the marketplace that the blind bid process, the pig in a poke, brings a seller [00:01:00] the highest price. It doesn't happen. Time and time again, it doesn't happen.
KieAnn: And we've given lots of examples as we've gone through, but one of the reasons it doesn't happen is the buyers get remorse when they've gone through this process. And then what happens when a buyer gets remorse? They terminate. And we're seeing this happen like 30 percent of the time in these multi bid offers. Over 30 percent of the contracts will fall. Once a house has been under contract and falls, that house is now stigmatized in the marketplace.
KieAnn: People are like, agents especially, are like, What's wrong with that house? It was only under contract for a week and it fell. I bet there's an inspection issue. I bet there was something that they're not telling us there's an inspection issue. We don't automatically jump to the buyers got scared and ran away.
KieAnn: We jump to what's wrong with that house? So now, all of a sudden, a seller [00:02:00] is harmed by their stupid blind bid process. Not to mention the fact that, and you can talk to this a lot better than I can, just the whole psychology of a competitive open bid platform where people can see and the competition, etc.
KieAnn: I know it brings higher prices.
James (2): Yeah, it certainly does. We've gone to, let's say a charity event and they have a live auction.
James (2): Why do you think there's an auctioneer? They are able to understand the room. They put you in a bidding situation where, you don't back away. Imagine going into a charity auction and being like, all right, everybody, just give us your best offer at this point in time, it'd be like 10 bucks.
James (2): a real auction could really drive multiples. And the data shows it drives anywhere between 7 and 15 percent higher pricing.
KieAnn: Exactly.
Kari: I'm from rural parts of North Dakota, right? And when a home is being sold or there's an estate [00:03:00] sale of some kind, it's typically an auctioneer will show up. All the contents will be brought out of the home, plopped in the yard and the community comes and you start an auction, right?
Kari: Some people travel from all over the state, just depending, what's listed in the advertisement for this upcoming auction. Now, I say this from a loving place, but a lot of times this stuff is simply junk, right? I am not a gambler, I don't like to do slot machines, I don't go to Vegas, I don't, any of that.
Kari: But, I don't like to lose money now, you put me in front of an auctioneer, You put me in a situation where I can see my competition. I do have a competitive personality. And it is somebody's junk, let's be real. Nobody else wanted it. It didn't have much of value because if it did, somebody close to that family would have taken ownership of that prized possession.
Kari: And all hell breaks loose. Somebody's at five bucks. I'm at six. They're at 10. I'm at 12. And it's not just two people. This is what [00:04:00] happens in an open, transparent offer platform. People get really excited. They can see who the competition is, where they're at. And suddenly going from, to, to real estate, something that is very meaningful to us, roof overhead and life necessity.
Kari: Holy cow. If you don't think for two seconds, if I really want this dream home, I'm going to feel really good about beating you out, James. If you're 5, 000 above me, I'm going, another thousand above you and we're going to just, and it feels okay because I can see as a consumer, This is comfortable.
Kari: This is what the market's bearing. And what do you think that does for the seller? This is what we're talking about. Sellers win, right? Cause they, now they got, they have buyers who are making offers on their home, probably more than they anticipated getting for their home. And they know that these buyers know what they're doing because they can see the competition that they're up to.
Kari: [00:05:00] And that doesn't mean that the seller necessarily is going to take the highest one. But they can see that people have real skin in the game because everybody knows what's going on and they're trusting the process, right? There's some integrity in it, some transparency, and this is a huge advantage to sellers.
Kari: The odds of them having an offer that falls out because of buyer's remorse lessens dramatically. It is
James (2): Yeah, that's a huge point. Getting rid of that stigmatism of this house fell out under contract. And then in the open bid system, the seller really can communicate directly what are their priorities selling because it's not always is. price, right? There's oftentimes other key drivers that the seller wants to make sure is met.
James (2): And if you're a buyer, you might have enough money to make it, but you might not be able to meet other key requirements of the seller. I thought, maybe you guys can give some examples of [00:06:00] a situation like that. Absolutely.
KieAnn: Sure. I think one of the most important drivers in any real estate transaction is the possession date because sellers don't want to have to move twice. It's a huge pain, So nobody wants to have to move twice. So the idea that they can retain possession maybe to closing and then have a little post occupancy period or something so that they can close on their next house and move.
KieAnn: That's huge. Oftentimes, that's as big of a driver as, price. Price always is king, but it's not the only thing that matters. And you never know about their personal situations. Kids and schools drive a lot of decision making around possession, so there's so many other factors that go into it.
KieAnn: The price doesn't just rule And one other thing I was going to say about what Kari was talking about, just the whole, as they drive these bids up, I think there's a huge misconception that [00:07:00] a list price on a house is the market value. The list price is not the market value, it's not the retail price for the shirt or something.
KieAnn: The list price is like an educated guess at about where we think it's going to sell. But we in the United States operate in a free market system. It's all about supply and demand. Right now we're operating in a period where we have no supply or very low supply of housing, and there's a lot more demand.
KieAnn: What happens in basic economics in periods of low supply and high demand? Prices rise. The idea you're overpaying for a house is just crazy. If there's 10 bids and everybody's right there in that relevant range, that is the market value. That's not overpaying for the house.
James (2): I know another big part of this. discussion around selling is the selling agent. So another [00:08:00] part of this is the selling agent, which is what we're going to get to in episode five, we're going to talk about the advantages of a open, transparent bid platform from a seller's perspective, from a seller's agent perspective.
James (2): And I think that's going to also show that everybody in this game is really battling against. An industry norm of a blind bid system puts mistrust on everybody and the transparent open bid system changes that.
So tune in to episode five, it's called agents of change the buyer's agent's perspective. So thank you again for listening and watching if you're on YouTube to the Real Estate Blind Bid Provocateurs and we'll catch you next time. Thanks so much for listening to this episode of the real estate blinded provocateurs. If you are ready to bring trust, transparency and integrity to residential real estate. Then don't be shy about it. Tell your friends, colleagues, and family, [00:09:00] perhaps he knows someone who's thinking about buying or selling a home, do them a favor and hit that share button and text and link to this episode. There'll be sure to thank you. If you prefer to watch your podcast as videos, guess what? We're on YouTube. Find us by searching for TruHome Value.
Thank you so much for listening. And that is about as much as we can incite and a day. Goodbye.
