|As an auctioneer and real estate agent, the question I hear on a regular basis at listing appointments is, “Should we try an auction?”
The answer actually depends on a number of factors.
How quickly do you need to be out of your home?
This is one of the most important considerations. If you need out quickly, an auction may be your best option.
The real estate market varies depending on location, the style of home and its condition.
Recently, I viewed a home that had several major cracks in the brick, and I recommended an auction because of the fact the home could sell as is and no repairs would need to be made.
But remember, placing a home like this one on the market may take several months to sell because buyers will not overlook those cracks.
How much equity do you have in your home?
If a homeowner does not have equity, an auction probably will not work.
Too many times I have seen homeowners who have lived in a home for five to 10 years but still don’t have much equity because of market decline.
How many homes are for sale in the immediate area?
This is important because if someone is looking at the neighborhood, they have many choices if there are several homes on the market.
If your home is the only home in the area being offered for sale, your chances for top dollar increase, as do your chances for a successful auction.
What are your expectations on selling price?
In certain areas, prices have not rebounded as well as other places.
If you are wanting to realize maximum potential selling price, you may want to list your home because it could take several months for a potential buyer to come along willing to pay your expected price.
Are you willing to complete extensive repairs or meet strict loan requirements if required by a particular lender or loan type?
Lenders have tightened loan requirements, and your home may have issues that will pose a threat to closing.
Repairs or modifications could cost thousands of dollars to complete depending on your particular situation.
Once again, with the auction method, the home sells as is, and any potential buyers are notified the sale of the home is not contingent on financing, appraisal or inspections.
These are just a few of the points to ponder when thinking about an auction.
Everyone’s situation is going to be different, and that is when you should consider calling a licensed and professional auctioneer.