Last month inĀ New York City, LeasebyAuction.com’s CEOĀ Gene Andersonrevealed for the first time publicly a new high impact negotiating method for both leasing and purchasing real estate.
During the two years leading up to LeasebyAuction’s (LBA’s) public release, a provisional patent and later utility patent was filed for a unique, non-binding, bidding process called ‘proffers’ (pre-offers). LBA’s methodology, ‘Find a Property. Name Your Price!’ was also trademarked. Anderson stated, “Our name gave us away! We could not make any public disclosures until all the processes associated with patents and copyrights were completed and the trademark granted. Now we are ‘the’ real estate website where the customer can, ‘Name Your Price!’ ”
“The market loves it,” says Anderson. “As fast as we can type, we are signing up members, helping upload properties and receiving ‘proffers’. (non-binding, pre-formal negotiation ‘feeler bids’). Proffers are sent straight to the owner or agent and they take it from there. Proffers on long dormant properties sometimes come within hours of being listed. Some of the largest real estate related companies in the world are waiting to load their properties into our database! With such a great reaction, our currentĀ Portland OregonĀ located team must be dramatically expanded.”
When a ‘proffer’ is made, both parties agree that they each can walk away without making any further response. “Proffering is great” says Anderson. “By submitting a proffer in writing you put cards on the table. However, our rules are that it’s not binding, you’re not obligated to preform, and no one is on the hook. It’s just a great starting point. LBA does not get involved with any negotiations. We deliver the message. The owners or agents take it from there and work directly with the inquirer outside the LBA website if they are interested in the proffer.”
LBA is unique in that unlike other real estate websites, the person looking does not just email a, ‘send me more information’ but they also add a greatly qualifying statement with the first inquiry. ‘Here is what I can do!’ If the proffer is reasonable to the owner or agent, the parties can come together for results that are economically beneficial to all involved. As such, LeasebyAuction.com has the potential to be transformational in terms of its’ benefit to the economy overall.
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