I am partial to auctions because I love conducting auctions. Over the past 30 years I’ve sold cars,houses,trustee properties, personal property and done many many charity auctions. Auctions create energy, energy spreads and people will buy. Sometimes they pay more than an item is worth because of all the positive and competitive energy. Sometimes, I’ve sold items at unbelievable discounts. Success of auctions depend on the crowd and the perceived value of the item offered for sale.
In many parts of the country, auction marketing is a very traditional way of selling real estate. The auction method of marketing is on the rise. It’s not for everyone or every situation, however, it certainly is a good choice for many sellers depending on their personal situation. It’s also a great way to liquidate the property within the home rather than having a yard sale or dealing with an “estate sale” professional. You can sell the personal property if your downsizing and sell the house the same day. Remember, you are the seller so you have complete control over the outcome.
According to the National Association of Realtors, there are several factors that determine what homes might be suited for auction sale. First and foremost, you must have equity and room to move on the price if necessary. That makes sense doesn’t it. If your house has been on the market for months and your getting no showings because it’s over priced an auction won’t work. If on the other hand you have a very unique property, you need to get it sold and you understand the marketing process, then it might be the way to get this one sold.
Right now, in many areas we are facing a shortage of inventory of suitable homes. An auction generates energy and activity, it may be the perfect climate to attempt an auction sale. It can stay on the multiple listing services website during the auction period. You can lower the price during the auction period to an opening bid price. This isn’t the sales price, it’s just a starting point and it’s usually much lower than the current list price. This one move will generate additional interest in your home. The brokers phone starts ringing, “whats the deal”, “how does this work”, ” when can I preview the house for auction?”, “Can I make an offer before the sale date?” These are things people want to know. And the answer is yes.
A well planned auction begins 30 days prior to the offer date. The property should be advertised in print media and the multiple listing service should be fully utilized to further enhance the marketing of your home. The house should be held open at least twice for viewings and question and answer periods for prospects. The terms of the sale, usually, “as is where is” with no right to cancel and a non refundable deposit should be collected.
Look guys, this is not for every house or everyone selling a house but the Auction method of selling is popular in many areas of the country and is a growing segment of the market.
If you think selling your home at auction is an interesting marketing alternative, call me today. I am more than happy to discuss your particular situation.