5 Things Home Sellers Should Know About Selling Their Home At Auction
Auctions are becoming more popular among real estate sellers. Partially because of the downturn in the housing market and the failure of many traditional marketing efforts. In addition to that, auctionshave become more excepted by the general public. That acceptance I attribute to eBay; almost everyone has either bought or sold something on eBay.
Chris Longly, deputy executive director of National Auctioneers Association in Overland Park, Ks. says' "Auctions force people to be decisive". For sellers who have had their homes on the market for a year, they can be relieved of the stress because the auctioneer can say, "On Thursday at 10:00 your home will be sold".
Here are the Five Things Home Sellers Should Know.
1. The auction house should hold a real estate license. This entitles them to properly represent the home owner in the transaction of the sale.
2. Unlike the "sheriff's auctions or foreclosure auctions where buyers are unable to view the inside of the home. In a regular auction the auction company's team will have open houses for potential buyers to view the home prior to the auction and they will provide information to the buyers explaining the process and terms of sale.
3. The first type of auction is an "absolute" sale with no reserve. This means whatever the last bid is, it's sold. Ironically these auctions attract more buyers and a high percentage of the time, sell for more money than an auction with a reserve.
4. The second, is an auction with "reserve". This means there is a predetermined price in reserve on the property. If bids do not reach this price then it's a no sale. The reserve price is not revealed to the public only the seller and auction know what the reserve is but usually the auctioneer will say the reserve is off and continue the biding.
5. A third method is to sell at auction with a "published minimum bid." The bid is low enough to excite buyers yet high enough to protect sellers stress level.
I hope this has been helpful. Our company has formed a partnership with an auction house here in Fort Worth, Texas and will very soon be open for business adding this option to our sellers giving them another option to sell their homes. We feel the auction will continue play a stronger roll in the future of selling real estate.