Anyone with Ten-X experiences that can speak to the process?
Ten-X has been popping lately with the amount of listings they have. I am sure you all have seen the Ten-X ads too all over YouTube with Keegan. Has anyone actually partnered with Ten-X to sell something? I am very curious to how effective they are compared to the traditional listing services. Also I was curious to if anyone works or worked for Ten-X, I would be very interested to learn about their jobs as well. I know they hire brokers but what do brokers even do when they go to Ten-X? I think Ten-X is a cool idea and I think eventually they will be competing on a big scale. Even though computer generated value sucks right now but they are a Costar Company which has all the data in the world. Maybe because I am still young but I don’t want to bet against technology and think traditional brokerage will survive after technology has caught up. Can anyone share some insights to Ten-X? Also curious on the owners side who decide to list with Ten-X, what is the process like? Does a broker reach out to you and price it for you like traditional brokerage?
[{"id": "hxa5z3i", "text": "Here", "replies": [], "depth": 1}, {"id": "hxaowb1", "text": "Sold a few properties on Ten-X as a broker. Platform is best for high demand assets, never previously listed, with an owner motivated to sell. Brokers are still needed as Ten-X just hosts the listing and reports to the broker the registered bidders but the broker has to coordinate tours, answer real estate specific questions, provide pricing, generate offering memorandum, etc. Ten-X approves the original before Bruning to auction but their data is most comprehensive in primary markets. The issues with Ten-X include: staff is inexperienced to real estate as a high turnover exist within co-star, Ten-X bids against potential bidders which results in some buyers refusing to use the platform, and leads aren't as qualified as Ten-X let's on. Have had a few registered bidders provide proof of funds only to determine later that they didn't have the funds.  Overall it's a great platform but you still need an experienced broker to drive the process as Ten-X is only a platform.", "replies": [{"id": "hxblt2o", "text": "That is so interesting! So how do you price stuff on Ten-X? Cause you start lower than the price you actually want right?", "replies": [{"id": "hxfydi2", "text": "The starting bid x 3 or 4 is typically rhe minimum reserve which is often not disclosed unless the bids are just under. All traditional valuation methods are used to establish the minimum reserve with Ten-X just verifying the broker provided number.\n\n It goes against traditional negotiation tactics to anchor higher than your strike price in an effort to create a bidding frenzy. Unfortunately, unless it's a highly desirable asset in a top tier market, this is often not the case.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hxpj0dr", "text": "It is also good for getting eyeballs on properties in tertiary markets. It helps speed up a transaction for the seller, but understand there typically has to be a discount tied to that. From the buyer side, financing is limited or not possible, due diligence is limited, ability to exit the transaction is very limited. I'm not paying full price with those restrictions. \n\nFor example, I've bought four properties through Ten-X. Three had tenants, and each of those had tenant performance problems that were not disclosed, in fact were obfuscated or incorrect financials were presented in the DD material. Yet there's no estoppels so you're relying on the DD material! I've generally done really well with Ten-X properties so I'm not complaining. You just have to be very aware of what is being bought/sold, which is a bunch of unknowns that the buyer can't fully verify.", "replies": [], "depth": 1}]