LOS ANGELES (CBSLA) — It’s a countdown Michael Alatorre and his wife Andrea will likely never forgot.
“Is this the closest we have come to the end,” he asks.
After a decade in their dream home, the retired Baldwin Hills couple found themselves in a posh Pasadena real estate office seconds away from from selling their house to the highest bidder.
“I don’t think I’ve had my heart beat this hard just watching a clock come down,” said Michael.
This all started when they listed their home with real estate agent Scott Anders, with the Deasy Penner Podley firm.
They were the first to list their home with a new auction platform called Plum Bid.
George Penner is the CEO and he launched Plum Bid two years ago. He explained to CBS2/KCAL9 reporter Jasmine Viel how the idea came to fruition.
“Plum Bid grew out of a concept that my partner Mike Deasy and I came up with to increase the level of transparency to the entire real estate process,” Penner says, “it was to empower buyers and sellers within this online environment.”
Think of it like eBay. When the day arrives to dell a home, qualified buyers have an hour and a half to make as many offers as they want. They can see what other people are bidding. And most important to the seller?
Is it an all cash offer? The length of escrow. and/or waiving the inspection report.
All the information the seller wants to know, right upfront.
“It was something that when it was explained to us, we both kind of looked at each other, just like where was this when we were trying to buy ten years ago?” says Michael.
The Alatorre’s mid-century modern home in Baldwin Hills was the latest to go on the Plum Bid auction block for $1.1 million.
For potential new buyers who went through the walk-thru, the concept was clearly intriguing.
Lander has seen many deals fall through in real estate. With Plum Bid, Lander says there is no animosity because people know exactly what they’re getting up front.
Still, some real estate agents who showed up were skeptical. Some buyers as well but as the bidding started, so did the interest.
The auction of the Alatorre’s house went into overtime again and again. The price of their house kept going up.
The winning bid? $1.75 million, all cash, 15-day escrow. No inspection.
The Alatorre’s were overcome with emotion.
The buyer’s told Viel they couldn’t be more thrilled and would do it all over again.The buyer’s also cover the cost of the auction, which is about 2 percent of the purchase price.
The Alatorre’s house sold for 62 percent over asking.
Viel reported the Alatorre house was unique — it was a hot listing in an even hotter neighborhood.
The average Plum Bid home has sold for 29 percent over the opening bid.