Auctions an Option for Home Sellers?

More than $40 billion worth of real estate was sold at auction during 2005.
Selling your property at auction can be a great way of selling your home.

If you are trying to sell your home maybe you should consider selling through
an auction.

I've done some research and have discovered many positive reasons why you
should consider it.

By auctioning your home:

You will have immediate exchange of contacts of those interested in your
property

Cash purchase / funding is in place – usually a minimum 10% deposit paid at
Auction

Not subject to a contract with an agent

Best price achieved through competitive bidding, just like eBay

Market exposure - many auctions attract 100's of potential buyers

Fixed completion date, a large deposit is required up front

Quick sale - without compromising sale price or agreements

Auctioneers tend to spend heavily on traditional and on-line marketing

Auctioneers tend to have databases that often contain 1,000s of potential
buyers

Compare it to the traditional sell by "market"

Sale is often subject to survey and mortgage approval

Single bidder will determine the final sale price

No guarantee that the property has been exposed to the whole market

Seller is locked into a marketing period that may not lead to a sale

Statistics show that 30% of private treaty sales fail to complete

Many real estate agents limit their marketing to a very local area because of
marketing cost

Real estate agents usually have limited mailing lists

Commissions tend to be high, 6% or more

You are subject to a contract with an agent, even if not happy with the
agent’s performance

Now compare it to "sell by owner"

As seller you may not be familiar with real estate laws

No one to represent you, unless you hire an attorney

Seller must spend a fair amount of money on marketing

No multiple listing marketing, unless you buy in

You must always be available to show your property

Auctions are best if you want to sell your home and most of its contents
fast. The downside is that once the auction has begun you can’t stop it,
unlike traditional selling where you can refuse an offer.

Whatever you decide make sure you do your homwork and consider all options.
Good luck.

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