|Selling your home is a major life decision, but figuring out how to sell it is even more important.
Most people use a traditional real estate listing method or try putting it on the market themselves.
One important method most homeowners overlook is the real estate auction method.
Understand, not every home is a good fit for an auction, but there are many benefits to using this method.
Auctions create excitement and heighten interest. When an auction sign goes up, so does curiosity. This interest can be further used to your advantage because an auction format creates the greatest amount of exposure in the shortest amount of time.
Usually, about three weeks before a home is put up for auction a seller will advertise in local newspapers and online, place large signs in the area, and send e-mail blasts and direct mailings to potential buyers.
Auctions also create competition between buyers. Buyers know the time and place of the auction, and most are aware that they have to be there if they are interested. No other real estate method brings as many buyers together at the same time at the same place.
Selling through an auction helps determine the true market value, which is defined by what a buyer is willing to pay for something at a given time at a given place . Everyone wants to know what their home is worth. By having interested buyers come together in one location, the selling price will more likely reflect the true market value.
Subsequently, this process removes the necessity of seller and buyer negotiations. The auctioneer negotiates the price higher with each bid in contrast to a traditional real estate transaction, one in which the buyer negotiates the price lower.
One of the most appealing aspects of this process is that auctions allow the seller to choose what date the property will be sold, not the buyer. In addition, the seller knows exactly how long the property will be marketed and can better prepare for future plans.
Unlike other selling methods, the terms and conditions of the sale are set by the seller. This rarely ever happens in a traditional real estate transaction. Normally, the buyer dictates the terms and conditions of the sale.
Auctions also eliminate numerous and unscheduled showings of the property. In other words, you do not have to make sure your home is in showing condition every morning before you leave for work.
Because it can take longer to sell a home through traditional real estate methods, costs associated with home maintainance, as well as taxes and interest, accumulate over time. These expenses can add up quickly, reducing the seller’s net proceeds.
Perhaps, the most important factor that could help you decide whether to sell your home through the auction method is the fact that there are no sale contingencies.
If you have ever sold a home, then you know all the buyer contingencies built into traditional real estate contracts.
Properties sold at auction are not contingent on financing, appraisal or inspections. This is stated in all advertising and announcements made on the day of sale. Once an auctioneer says “sold,” you can expect a closing in 30 days or less.
If you are thinking about selling your home, be sure to consider all your options. An auction just might be the perfect solution.