FAQ

What’s the deal, Ninja?

The deal is simple. I price my listings less than perceived value, wait ten days (attracting as many buyers as possible), then sell to the best (net-to-seller, plus terms) bid received.

What's with the no commission thing?

There's a really big difference between offering no commission and the seller refusing to pay a buyer's broker's commission. My sellers do not refuse to pay your commission, rather they simply request that you bid for your commission the same as your buyer bids for the house. Your commission is a seller-paid concession, just the same as if the seller paid for a buyer's closing cost. My sellers are willing pay you 17% commission if you want, just make it part of your bid.

Is Ninja your real name?

Yes. My mother is a cruel woman.

Actually my name is Peter F Porcelli of Maximum One Realty.

Is this a foreclosure?

Nope. I do not list foreclosed properties.

Is this a short sale?

If the listing you are inquiring about is a short sale, then it should be obvious from my marketing documents. You will find "This listing is a potential short sale" on page one of my bid/marketing packet, in description on MLSs, in description of listing on syndicated websites, and on flyers. If my listing is a potential short sale, then I disclose that information everywhere possible and it should be easy for you to find.

Just how low is your price?

My price is low enough to attract every buyer in the market, without attracting too many buyers that cannot afford to compete with market value bids.

What is the lowest price your seller will accept?

I do not know the lowest price my seller will accept (I purposely do not have that conversation with my sellers).

This is because it is unlawful for licensees to list property for less than they know the seller will accept. Before listing, I tell my sellers what price I believe I can get for them, and they must approve of that price or I will not list their property. My knowing of a price the seller will accept is not the same thing as knowing the lowest price the seller will accept. I am careful to keep the distinction in the forefront of all discussions with my sellers prior to listing.

What is the price you quoted your seller?

Do some homework on value in this particular market and you will arrive at the same price I quoted my seller. Here's a hint at how I interpret values: my geographic boundary is always a high school district, I use three comparable sales (emphasis sales) as close to today as possible (two months maximum), then compare only those with same effective age (building materials, etc) same size (square footage, number of rooms)

How many offers do you have right now?

I will always tell you how many bids are on the table and where you rank on bid day. Just call or email me and I will let you know those figures.

Does your seller have to accept the highest bid?

No. In fact, the seller does not have to accept any bid or offer, regardless of what that offer consists.

Some simple logic will clear this issue:

The statute of frauds (remember that one from pre-license class?) states that all real estate agreements must be in writing (to be enforcable).

For agreements to be enforecable, certain conditions must be met (one of which is a closing date must be established).

Therefore, a listing in the MLS does not constitute an offer by the seller, of which the buyer can accept by offering full price.

In fact, when the buyer makes an offer, its just that: an offer. When an offer is presented, the offeree has three choices: accept, reject, or counter-offer. When a seller lists property in the MLS, that seller is not extending an offer, rather an invitation to negotiate for the sale of their property (HUGE difference).

How can you make this process easier for me?

I have done everything I can think of to make it simple for you! Let me count the ways:

1) bid form: I provide a bid form for you to submit. The bid form takes about three minutes to complete, and contains all the variable items of a standard offer. This benefits you and me because it allows my seller to compare bids easily and it saves you about an hour of time (if you're the type that composes offers correctly, that is).

2) (in most cases) I have hung notes throughout the property, pointing-out selling features and answering questions you didn't even realize you (or your buyer) had

3) bid packet, which contains: disclosures, public records, surveys, plats, and pics. Just know this: all data I have on my listing will be found in the bid packet. I provide all this info so that you and your buyer may make an informed bid.

4) I answer my phone (or return calls the same day-- if I don't answer, please leave a voicemail or I might not notice your call) and quickly respond to emails.

5) I host an open house on the Saturday and Sunday just prior to the bid due date. Open houses are generally scheduled from noon to 6pm each day. This is good for you. Imagine you show my listing today and place a bid tomorrow. Then your buyer wants to show the house to his mom and you're too busy to drive over again. Simply send your buyer and his mom to my open house. I'm more than happy to entertain all people in attendance.

6) Because the listing is open for bids for ten days, you will not be rushed to show and make a bid within the first three hours you (or your buyer) take notice of the listing. Bids are always due at midnight on the bid day. This give you plenty of time to get your bid in without a rush.

7) You may ask me anything. I will always give you the skinny.

There is a link to my bid packet in both FMLS and GaMLS private remarks sections. If you cannot find the bid packet, please email me and I will send you a link.

I am always open to suggestions. If I can make the process even easier for you, please lemme know!

How high should I bid?

I dunno. How many hotdogs should I eat for lunch? You should act in a manner congruent with your research and comfort level.

What are the other bids?

In fairness to other bidders, I will not tell you of another's bid. However, in fairness to my seller, I will make you this deal (this deal is only extended to those that have placed a bid): contact me on the day bids are due. I will tell you how many bids there are and where yours ranks (ranked by net-to-seller figures only). This will allow you to adjust your bid if necessary. However, remember that net-to-seller is not the only important part of your bid. Terms are equally, if not more important, when the seller is deciding between bids.

Why wait ten days?

Ten days is long enough for all buyers in the market to notice our listing, but not so long that buyers making a bid on day one have to wait too long for an answer. Its a real pooper when you find a listing that's only three days old, but already under contract.

Remember, I work for the Seller, and I feel that a Seller who accepts an offer quickly has not received the highest possible value for their sale. This is based upon my first-hand experience that the best offers come in the last five days, not the first five.

Who can bid (investors or owner-occupants only)?

Anyone can bid on our listings (except the Amish)! Well, alright, the Amish can bid too!

I'm an agent and I don't wanna show property without you guaranteeing my commish. So, good day to you, Sir!

That's your prerogative and I respect your decision to operate your business as you see fit. However, you should consider two things:

1) your buyer is most-likely to find my listing on the internet and become very interested in learning more and there is nothing you can do about that.

2) if your buyer calls or emails me, I will give them all the same information available to you on this listing.

Nearly every listing generates at least one series of phone calls that goes like this:

Agent calls me: "Hi. I'm Agent Betty. What's with this 'No Commission' thing?... Oh, really? Well then, I'm not gonna show your listing."

Next day, Buyer calls me: "Hi. I'm a buyer. Your listing is showing 'Active', but my agent said this listing is already under contract, infested with rats and it smells like barf. Are these things true?"

I will then explain the entire process to that buyer, knowing that this buyer most-likely belongs to Agent Betty.

Remember, its not my job to guarantee your commission; that is your job! A law-abiding agent engages in a brokerage agreement with buyers prior to showing property listings. An intelligent agent has a provision within their brokerage agreements regarding the buyer guaranteeing the agent's commission. An agent with integrity engages in conversation with buyers about the commission provision prior to signing that agreement.

What do you mean by highest net-to-seller plus terms?

The Seller is most concerned with two things: how much money can I walk away with (net proceeds) and how easily can I get that money (terms of agreement).

consider these two scenarios:

1) net proceeds: $100k; terms: no contingencies, $10k earnest money, close in twenty days

2) net porceeds: $150k; terms: FHA financing (with contingency), inspecition contingency, "I-gotta-sell-my-house-first" contingency, $500 earnest money, close in two-hundred days

Some sellers are willing to navigate sticky contingencies and long close times to receive more proceeds at closing, but some are not. For many sellers, scenario one is a better 'net-to-seller plus terms' offer.

Is this a net listing?

No. Net listings are unlawful in Georgia, due to the temptation of agents to defraud naive clients.

A net listing is when an agent's commission is any dollar amount he can produce over the listed price. Example being: Grandma tells Agent Awful that she wants to sell her house and really only needs $100k for the sales price. Agent Awful knows Grandma's house is worth $150k. Agent Awful and Grandma agree that Agent Awful's commission is any amount over $100k.

Please do not confuse my discussion of net-to-seller proceeds with net listing. These are two completely different things. Net-to-seller is the amount of money the seller puts into their pocket on the sale. Net listing is a commission amount over a certain sales price.

Isn't it unlawful for you to list for less than a seller will accept?

I have no idea what the Seller will accept or reject. I do know an acceptable dollar amount to the Seller, but I do not know all the acceptable dollar amounts the seller will accept.

Don't you have to accept a full price offer?

No. The law is very clear on this topic. When a Seller lists their house for sale, that Seller is not making an offer to all Buyers in the market, rather that Seller is inviting Buyers to bargain with them for the sale (quite a distinct difference).

An offer is something that becomes a contract when accepted by the party to whom it is presented. A listing in the MLS cannot be "accepted" by a Buyer and become a contract because that listing is not an offer to begin with.

Don't you have to present offers at the moment you receive the offer?

My seller has instructed me to present all offers at the exact same time, which is the morning of day eleven. To clarify: day one is always a Friday, day ten (the day bids are due) is always a Monday, and on day eleven (Tuesday morning) I present all the bids/offers to the seller at the same time. From there, the seller makes a decision on which bid they like the best and (if the seller so desires) a contract is then drafted between the seller and best-bidding buyer.

How many bids do you normally receive?

The number of bids we receive varies from listing to listing, but about a dozen bids is common. The most offers we've received is 57 (there were 161 showings)!

With so many bids, my chances are low, so I shouldn't waste my time, right?

Nonsense. Every bid has the ability to be the best bid. Don’t consider this a bidding war, rather you should make a bid that is your best, the bid you are happy to walk away from. You are encouraged to make a bid, regardless of what that bids consists.

What should I submit?

Please follow the directions outlined in the bid packet. If you cannot find the bid packet, please contact me via email and I will send you a link, pronto!

I will present all offers made, whether those offers are verbal, on GAR forms, or on cocktail napkins. The reason we suggest you submit via bid form is to save you time and makes it easier for seller to compare bids.

I highly suggest you have your buyer sign the multiple-offer disclosure, as it will protect you and ensure the buyer understands this process. I present all offers, whether or not your buyer signs the disclosure.

Does the seller have a financial advantage accepting a bid by an unrepresented buyer (is there a variable rate commission (VRC))?

Nope. A variable rate commission is when the Seller and listing agent have an agreement to charge the seller less commission if the listing agent acts as the only agent in the transaction. 

Common example: Seller and listing agent make agreement for X% commission (whereby listing agent will share half with a buyer agent), but will only charge Seller Y% commission (whereby Y% is less than X%) if buyer is unrepresented in the transaction. In this case, the listing agent's commission is variable (meaning it changes based upon the transaction scenario). Another example of a VRC is when the listing agent offers X% commission to buyer agent, but declares that if listing agent shows the listing to your buyer, then buyer agent commission is only X-2%.

My commission is determined by one factor and does not fluctuate based upon anything else: I earn a percentage of the net-to-seller amount. This means that my commission is a calculation of the net-to-seller amount and I earn the same commission amount whether there are zero agents, two agents or ten agents involved in the transaction.

What happens if you get zero bids or if the seller does not accept the best bid?

Our listing agreements are for thirty days. If the seller does not accept the best bid after the bid process ends, then the price is adjusted to the seller's bottom-line price for the remaining nineteen days.

Why do you sell property this way?

Because only a single buyer and a single seller, negotiating for a single property can establish market value. Each property is unique and each property sells for a different price and different terms, from all other properties. Using this selling method quickly establishes for the seller what the market will bear in value and terms of sale.

You can't do that?

I can't or I shouldn't? There is a big difference between me acting in an unlawful manner and you just not liking the way I conduct my business. I have developed my system to best represent my clients, while providing excellent service to agents. If you feel that I am acting unlawfully, then please bring it to my attention (provide the code section that you feel applies). If, on the other hand, you feel that I am un-cool, then you can tell me so-- my only request is that you keep your cool while telling me off.

May I join Team Ninja?

I'm always looking for intelligent, motivated agents to join the team. If you are interested in learning more, please contact me at teamninjaoffers@gmail.com

I don't wanna join Team Ninja, but I might have a referral to give.
The Ninja loves you. Call me today: 770-828-6529