Selling Your Home - Auction vs Sale
When selling your home, you have the option of selling a home in the
conventional manner or selling it by auction. This can be a good
alternative option when the market has slowed and there is a large
inventory of unsold homes and a large numbers of buyers. In this type of
market, homes can sit on the market for several months and many may not
even sell. In those cases, a real estate auction can have several
advantages.
- Bidders have to pre-qualify for the loan. Usually, they must
also register for the auction using a certified check.
- Auctions receive a lot of publicity and visibility.
- Because of the deadlines, there is a sense of urgency created
and that can create competition between potential buyers. This can
result in higher than normal selling prices.
- When selling your home by auction, you know the home will sell
within a certain period of time.
- With a home auction, the terms are set by the seller. There is
no negotiating and haggling over price.
If you decide to auction your home, you should find an
experienced auction house. This can be done quickly by searching the
National Auctioneers Association website. You also want to hire an
experienced auctioneer who keeps us with industry trends. Ideally,
you also want to choose an auctioneer who has experience in selling
homes similar to your home. They should have a specific marketing
plan and you should be aware of the plan. It is also recommended
that your real estate attorney reviews the agreement with the
auctioneer before you sign anything. Deciding whether to sell your
home by auction or in a more conventional manner is an important
decision. Each situation is different so you need to take your time
and make a wise decision. |
