Advantages to Auctioning your Home
So your home isn’t selling right now. The market may be saturated with the type of property you want to sell. There are other options to get that home sold. One such option is to auction your home.
When we think of auctions we think of either Sotheby’s or an estate sale. One is a prestigious way to get a large sum for your product and the other is an attempt to get whatever you can. Selling a home at an auction is actually neither of these things. You can get a good price for your home if you have been unsuccessful using the conventional method.
One advantage to using a home auction is the turnaround time. Auctions use a specific timeline to advertise and market the property before holding the auction. The time is typically six weeks from the time you sign the contract with the auction house.
During that six weeks they are doing all they can to advertise your home along several avenues. They get the word out in direct mailings, ads, brochures, newspapers and television. Some use radio and/or television if the property is a high profile one.
Before you sign the contract, be aware that a seller has the right to dictate the minimum price of the sale. If you have already been through the price dropping process with the conventional method, you may be firmly set on a price for the home. You have that right. Selling that is subject to reserve means that they price will go no lower than the minimum price set by you.
Auctions also offer the option of an “absolute” auction. This means that the house will be sold regardless of the dollar amount of the winning bid. It could be your requested price or it could be much lower. Owners who want to sell the house quickly may use this option.
Auction bidders have the money to back up their bids. Traditionally, financing may fall through at the last minute and a deal stalls. That is not the case with auctions. There is no financing or other negotiation. A bidder must have their financing in place before being allowed to bid. Auctioning is a cash only transaction. Whoever wins the bid is guaranteed to pay up.
Auctions are also subject to fluctuations in the real estate markets. Bidders are not going to pay more than the market value if there is an inventory of property. The more they have to choose from, the lower the price will be for the seller. Sellers are also required to pay the marketing costs out of the sale price receive for the home.
There are many advantages to selling a home at auction. If you need to sell your property and it hasn’t moved with your real estate agent, give auctioning a try.
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