[youtube]http://www.youtube.com/watch?v=59Hj7bp38f8[/youtube]Our client Countdown to Buy launched a matching platform today that accelerates the sales cycle of foreclosed properties. CTB uses a technology that automatically matches buyers and sellers in a real estate transaction through a time-limited process that reduces the property's list price 1% per day. According to CTB, this matching process generally takes 60 days or less.
So what is the countdown process?
Each property is listed with an offer range. Qualified buyers bid privately and confidentially within this range. The price decreases 1% per day across the offer range. As soon as the day's price matches a buyer's offer, the property goes to contract immediately.
Since Countdown to Buy can do a better job explaining this model than I can, check out this video for a simple explanation on how the match process works and what happens when multiple buyers are in the mix.
CTB President Dan Connell says this new way of purchasing a home is not your typical auction model:
"We integrated the best features from the traditional real estate model and the prevailing auction method and created a next generation real estate transaction model that brings transparency, trust and a controlled urgency into the process. From the traditional model, CTB took the insights and a local knowledge of agents, inspectors, contractors, and appraisers and incorporated their roles in a much more efficient manner. From the auction model, CTB created an environment of controlled urgency, but not a manic high pressure sales environment that can potentially be manipulated."
As of today, the pilot program features properties from Connecticut, New Jersey and New York with the potential for additional locations to be added pending negotiations with leading banks and service companies.
In an auction scenario, buyers need to quickly consume relevant information about prospective homes, especially regarding an area's home sales trending and seasonal activity. CTB's implementation of Onboard's Neighborhood Navigator gives buyers all of this information instantly.
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