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 agents 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 cant 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. |
