Selling your Home at Auction

Some homeowners are opting for a different strategy in selling their homes at a time when the market is slowing down. They are putting their homes on auction for a faster sale. Auctioneers have confirmed this demand since housing markets started cooling down in the previous years. The National Auctioneers Association (NAA) report that auctions of residential properties in the U.S. in 2005 went up by 8.4% from the 2004 figures totaling $1.4 billion.

Real estate experts say home sellers in America have a tendency to use auctions when the housing market is not doing well. It was in the late 1980s and 1990s when home auctions became highly popular as home prices dropped in several parts of the U.S.

Home sellers, however, should be aware that auction services are costly. They usually charge commissions and marketing fees worth more than 10% of your home’s value compared to the five to six percent rate asked by real estate agents. Bidding results may not always be very satisfactory as your homes could end up being valued far lower than you expected. Nevertheless, auctioneers explain that their service fees are reasonable considering the fact that they can sell your homes faster than the conventional method.