In slumping house market, creative thinking required

After having her home on the market for nearly a year -- with about 30 showings, multiple price drops, and only one not-so-tempting offer -- Phyllis Troia decided to try something different. Very different.

She and her husband put her Dutch colonial in Plymouth up for auction, to be sold to the highest bidder.

To kick-start the bidding war, Phyllis Troia welcomed 60-some-odd people into the home over Father's Day weekend. Her mother served fresh-baked cookies, her husband chatted up the guests in the living room, and her father escorted people around the property, nestled in a cozy Plymouth neighborhood just minutes from the beach.

``It's marketing out of the box," said Troia.

After the weekend, there were nine bidders -- a very promising development. But in the end, she was not satisfied with the final two bids, and exercised her right to close the bidding. She's now moved on to a for-sale-by-owner model.

Troia's efforts reflect the frustration of home sellers in the region. There are nearly 1,000 more single-family homes for sale on the South Shore than there were a year ago at this time, according to the Plymouth & South Shore Association of Realtors Inc. To make a sale in a slumping market calls for some creative thinking.

``I had to take my destiny into my own hands," Troia said, because, ``the only solution my realtor came up with was to undersell my house.

``This," she added , ``is a wake-up call to the real estate industry."

Creative marketing can draw a high volume of visitors, which can uncover serious buyers, not just tire-kickers.

John Phaneuf, who bought and sold a house in Plymouth through the bidding process --and who also happens to be a real estate agent -- suggests the key to a quick sell is pricing. Bidding typically starts way below market value, and that's the attraction. After spending time in the house, talking to the owners, understanding the great deal they could be getting, the buyer's competitive urge breaks through.

Three years ago, Phaneuf bought a house for a bid of $287,500. In February, after three weeks of advertising on the Internet, he held a two-day open house . There were about 80 interested parties, which he quickly narrowed to 10 serious buyers, and he sold the house that same Sunday night for $425,000.

``What you hope is to get the buyers into a bidding war, which is what happened with us . . . and we got a fair price for the house," he said. But, he also says he was realistic about the process and did not get stuck on a number.

``The idea of the five-day sale is that the house will sell for what it's worth, and it's only worth what someone is willing to pay for it," Phaneuf said.

In the bidding system, the price starts unusually low. For example, Troia's house has a market assessment of $405,000, but she started the bidding at $224,500. She also had the home inspection and the Title 5 sewage disposal system compliance test done ahead of time; she even had a mortgage broker on-site during the open house. Most important perhaps, she got personally involved, passing out fliers at South Station in Boston, posting signs on exit offramps, and using the Internet to create an informational website.

Troia, a physician, realized that selling is as much psychology as it is marketing. By inviting people in and recounting stories of her 20 years in the home -- such as taking photographs in the living room the rainy day she and Richard got married, or the water garden they planted to attract birds, frogs, and box turtles -- she gave the house personality.

Although she did not get the bids she wanted, Troia -- who got the idea for an auction from the book ``How to Sell Your Home in 5 Days," by Bill Effros -- says she learned a lot and she's confident she'll successfully sell her house on her own.

``Here, the seller is taking responsibility," explained George Cappony, president of Sales Systems Inc., a San Diego consulting company that coaches people on the five-day system, which is the time allocated for the open house and the bidding.

``They meet face-to-face with the potential buyer and tell them exactly what is right and wrong about the house," Cappony said. ``It is totally transparent."

That transparency, however, can be dangerous. According to Kimberly Allard, broker/o wner of Century 21 Professionals in Braintree and president of Plymouth & South Shore Association of Realtors, there's a time and a place for the two parties to meet, but it's not right away.

``The issue with buyers and sellers is not so much keeping them apart as it is protecting the client from liability," Allard said. For instance, if the sellers are boasting about the roof they put on 10 years ago and declare it will never leak, they have made a representation to the buyer that could leave them accountable if something goes wrong.

The bidding system requires time, attention, and research, and the paperwork may trip up homeowners trying to sell on their own. ``There are a lot of websites that give buyers and sellers information, but the interpretation of that data is what the realtor brings to the table," Allard said. Not to mention, with all of the training and experience realtors have, ``we are experts at negotiation," she said.

Allard points out that while sellers seem frustrated right now, the market is actually ``righting" itself, and this year is expected to be one of the top five years in home sales, she said. And, she cautions, although people cringe at a realtor's 4 percent to 6 percent commission, statistics show a seller will generally get 17 percent more for a home sold with the assistance of an agent.

Troia, however, is happy she is taking the go-it-alone route to get what she thinks her house is worth. ``This is a great house," she said over and over, as people meandered through during her recent open house.

``We'll see what happens," she said. ``I have too much invested to walk away with a minimal amount of money."

What do you think?

Do you have any creative strategies for homeowners in this area trying to sell a house? Please e-mail your comments to globesouth@globe.com, with your name, hometown, and a daytime phone number (for verification only).