06 Jan 5 Reasons why you should sell your home at auction
In the past, real estate auctions were considered something that desperate sellers choose, or for properties that the bank owns. However modern day real estate auctions include a much wider range of sellers, and over the last few years the number of homes sold by auction has steadily increased.
More and more people are viewing auctioned homes in the same way they would view conventional real estate listings. And why wouldn’t they? Auctions can be a quick and effective way of selling a property in a wide variety of markets, something both buyers and sellers are increasingly moving towards.
Find out 5 reasons why selling your home at auction could be a great choice.
1. Auctions create competition between bidders and there’s no ceiling in a bidding war. This can lead to bidders spending a lot more in an auction environment than they would spend in a regular real estate negotiation. And a competitive market can bring an increased buyer bidding pool which in turn increases the chances of a higher final bid.
2. Even if the market isn’t competitive, an auction can still be helpful in a slow market. By auctioning a home you can sell it more quickly than having it linger on the market, as well as be assured that the sale of your property is at true market value.
3. Auctions can attract serious buyers. Many auction companies require a deposit or a pre-qualification process prior to allowing participants to bid. In addition, the highest bidder is required to provide a percentage of the purchase price at the time of sale. Usually investors are serious buyers, but popularity is growing with owner-occupants. Whether they’re trying to get into a competitive market or they’re wanting a home to renovate, owner-occupant buyers can be just as serious as investors.
4. Sellers can rely on a set date for the sale of their property. Auctions expedite the sale process and they have an exact date for that sale, so sellers can budget their carrying costs like mortgage payments, maintenance costs, taxes, etc. It can be expensive to hold a property and auctions offer a reliable sale date rather than listing it and waiting for a sale.
5. From start to finish usually the selling process takes 6-8 weeks and is much faster than selling using the conventional method. The auction itself is fast-paced and once it’s over, a completion date is set, approximately 28 days later. This is a much quicker process than using an agent’s services, and you can rely on the legally-binding auction process so you can plan ahead with confidence.