Dutch auction for a land listing

[Bobby Bucks]

I bought some land in my self-directed IRA about 15 years ago and subdivided it, sold some, kept some, then subdivided again. I’ve been waiting patiently for a paved public road, water and sewer to get there and now it’s here. Since it’s my IRA, I cannot be involved in the transaction commission wise, so I have to use another realtor, it’s an expense I don’t like, but have to accept. One thing I’m going to do which I’ve done before is employ the Dutch auction method, start with a premium price and then reduce it weekly until it sells. I’m in no rush and the timing is right on many levels. I used to have an REO client that did the Dutch auction method for every REO property in their inventory and I thought it worked well for them. Rule #1 is never leave money on the table. The NAR and their battle axe brigades hate it. The top agent where the land is located got arrogant when I was discussing a possibly listing with her and I mentioned the Dutch auction. She will not get the listing. I’ve dealt with her before as an appraiser and as a broker, she’s good, but not that good. She knows it’s in a self directed IRA and she asked if I was going to buy more land in that area after the sale and when I said I was putting most of it in Bitcoin she got even more arrogant. A second reason she won’t be the listing agent. NYOB. Anyone else ever dealt with real estate in a Dutch auction listing? When I told builder buddy about it he laughed and said “Real-a-tores hate doing any additional work and changing the price each week on their laptop must be exhausting.”

 

[TC]

Dutch auction? That's the second term you've used that I didn't know. Is that a slur against all Dutch heritage? The first was 'goat roper.'

 

[Terrel L. Shields]

Dutch auction? That's the second term you've used that I didn't know. Is that a slur against all Dutch heritage? The first was 'goat roper.'

If you seriously do not know, the Dutch sell flowers on the market in a Dutch auction. A pallet is brought out, and a clock starts counting down from top prices to lower prices pausing at each mark. Then the buyers push the button when they want to pay that price. Since first button, first win, a buyer cannot hold out too long or they walk out without any product.

The diamond market is different. They simply tell you the price of a bag of mixed diamonds and you take it or leave it. Leave it too often and they will only offer you trash next time. Buy frequently and they will upgrade your bag of diamonds.

 

[TC]

Seriously, never heard it before. I don't get out much.

 

[ucbruin]

If you seriously do not know, the Dutch sell flowers on the market in a Dutch auction. A pallet is brought out, and a clock starts counting down from top prices to lower prices pausing at each mark. Then the buyers push the button when they want to pay that price. Since first button, first win, a buyer cannot hold out too long or they walk out without any product.

The diamond market is different. They simply tell you the price of a bag of mixed diamonds and you take it or leave it. Leave it too often and they will only offer you trash next time. Buy frequently and they will upgrade your bag of diamonds.

BLESS HIS HEART....
Bucks is going to employ the beloved AMC model....

ucb's motto....
If you can't beat 'em....
Join 'em....

I know, I know, I know....
ucb....
STFU....

 

[Tom D]

I've cut the seller's broker fee to the realtor. Also have noticed more 2.5% for the buyer broker. If land is selling, why not build a spec house on one lot. If it sells fast enough you do another one, since you seem to not be in a hurry. You seem to not need it immediately, if 1 sold, being nervous i would wait for rates to go back down and start selling the typical house in the area, brand new.

I speak from by going back to my fix/flip days now. So little aggravation when you do it right. If you are nervous, find a construction person to partner with.

 

[Bobby Bucks]

Dutch auction? That's the second term you've used that I didn't know. Is that a slur against all Dutch heritage? The first was 'goat roper.'

It’s actually a slur against the Pennsylvania Dutch who aren’t Dutch at all. I’m 1/16 Pennsylvania Dutch, German actually, the English called them Dutch (Deutsch) the "Pittsburg" region, they migrated west to rope goats. We may be related cousin TC.

I've cut the seller's broker fee to the realtor. Also have noticed more 2.5% for the buyer broker. If land is selling, why not build a spec house on one lot. If it sells fast enough you do another one, since you seem to not be in a hurry. You seem to not need it immediately, if 1 sold, being nervous i would wait for rates to go back down and start selling the typical house in the area, brand new.

I speak from by going back to my fix/flip days now. So little aggravation when you do it right. If you are nervous, find a construction person to partner with.

I’ve always tried to avoid shaving broker’s fees, if a selling agent is showing 2 similar properties, they tend to promote the one with the highest commission. I’ve consider the spec house route, but since it’s within an IRA it can be an accounting headache with the trustee. Also, I don’t have a GC license. I’ve done some out of pocket specs before and turned the ones that didn’t sell into rentals.

BLESS HIS HEART....
Bucks is going to employ the beloved AMC model....

ucb's motto....
If you can't beat 'em....
Join 'em....

I know, I know, I know....
ucb....
STFU....

It wasn’t an AMC, it was a real bank.

 

[ucbruin]

"It wasn’t an AMC, it was a real bank."

The Dutch auction model sounds like an AMC model....

From how Terrel explained it....
Instead of making buyers bid up....
They're bidding down....

 

[Terrel L. Shields]

German actually, the English called them Dutch (Deutsch) the "Pittsburg" region, they migrated west to rope goats. We may be related cousin TC.

ROFL... My Brit namesake was in PA for 7 years or so, Bradford County. Drifted into Ohio. Married a German girl - Zigler. She had been married to a Rausher - a tapestry maker 30 years her senior, had 4 kids - her hubby and 1 son buried in Delaware OH, and old GGGrampa said he had a little money after selling the PA farm and was going to be drafted anyway so thought maybe she could use it if he died. Made it as far south as Kennesaw Mtn. with Sherman before his old age (40) crippled him. Ended up in Missouri and had another 4 kids with his German wife.

In Arkansas, during the CW, Hermannsburg was a grist mill but feelings against Germans ran so high, they changed the name of the place to Dutch Mills... not a dutchman within miles. And, oddly, on the other side of the family, they were pro-South from Germany named Sager and Meyer.