In this day and age, there are many different ways to sell your home. While using a realtor is still the most popular option when selling a house, it’s worth exploring alternatives to see if there is a better fit for your needs. One of those possible options is to sell your home at auction.
While many people have the perception that auctions are for houses in distressed situations, this is not always the case. Some sellers with homes in decent condition now opt for an auction because they find the traditional sale process aggravating and time-consuming.
How to Sell Your Home at Auction
To sell your home at an auction, you need to hire a real estate auction company, rather than a realtor. That company will take on the marketing and advertising tasks, to generate interest in the auction. They will then coordinate with you to set up a date for an auction. Real estate auction companies and realtors make money in a similar way — they both get a commission from the sale of the house.
Homes put up for auction are offered “with reserve”, or “absolute” (no reserve). When offered with a reserve, there is a minimum amount that must be met in order for the sale to go through. There is no minimum when offered with no reserve.
In auction sales, houses are typically sold as is. Bidders cannot request any conditions or contingencies if they place a bid on the day of the auction.
A good real estate auction company will enforce strict requirements for bidders to be eligible to participate in the auction. These requirements will help ensure only legitimate bids are made.
Benefits of Selling Home at Auction
- You control the terms of the sale, rather than waiting for an offer.
- A set auction date creates urgency for potential buyers.
- Home is sold as is, no additional repairs or work can be requested from buyers.
- No negotiations are required on the seller’s end.
- Ideal for houses with unique characteristics, in which the true market value wouldn’t be reflected in a traditional realtor sale.
Downsides of Selling Home at Auction
- Smaller buyer pool, as many buyers aren’t familiar/comfortable with buying a house at auction. In addition, potential buyers must meet strict requirements, which also narrows the potential buyer pool.
- Perception of home auction sales is that the home is in a state of total disrepair.
Another Alternative: Selling Your Home for Cash
Selling your home through an auction or using a realtor aren’t your only two options. If an auction sale intrigues you, you should also consider selling your home for cash. Cash for house sales provide many of the same benefits of an auction sale (home sold as is, you control terms of sale) with the added plus of being able to sell your home in as little as a week.
Interested in learning more about selling your home for cash? Contact 800-Buy-Kwik today!