Competitive markets increase shoppers' bid pool and increase the chances that buyers will pay more than they wanted. Auctions aren't just for competitive markets. They can also be useful in a recession to sell a home quickly at true market value. An auction gives homeowners the best chance to sell their real estate quickly.
Auctions bring interested buyers together in one place for a day. The entire process can be done in one hour. That's much more efficient than selling real estate by advertising it with a real estate agent and patiently waiting for the best deals to arrive. The process of selling a mortgage property can be a bit complex, as there are several stages in the foreclosure process.
For example, during pre-foreclosure, the homeowner or borrower still has some control over the property. If they can sell it during this stage and pay the lender, the foreclosure process ends. The duration of the pre-foreclosure phase varies, but it usually ranges from 30 to 120 days. Your home auction lets you know the exact date of the sale so you can budget accordingly.
You can plan for mortgage payments, taxes, and home maintenance costs. This is rarely possible when you list your house in a conventional way. Unlike most private sales by a landlord or through a real estate agent, homes sold by auction sell as is. This means that buyers cannot ask sellers to do any additional work on the property.
In addition, bidders cannot add any conditions or contingencies. With an auction, the sale of your home is not tied to appraisals, inspections, financing a mortgage, or any other condition that the buyer wants to add. Instead, Cates Auction has strict requirements for bidders, eliminating less serious buyers before they are allowed to bid. The National Association of Realtors (NAR) suggests the two-thirds rule to determine if selling a home at auction is the best decision for your situation.
At first glance, selling land may seem less complicated than selling real estate with a building on it. Selling a commercial property through an auction may be the way to go, especially if you have a tight schedule and want to sell the property on a specific date. Auction marketing exposes your home to a wider audience of buyers and competitive bidding means you sell it to the person willing to pay more than anyone else. Working with an agent to sell a home includes some of the pros and cons of both FSBO sales and selling a home at auction.
Selling a home through auction marketing usually takes no more than 30 to 45 days (often less), and the auction itself is simply the conclusion of the process. When the local housing market is slow, and when it is difficult to generate good offers by traditionally listing your home on the Multiple Listing Service, you can try to sell your home through a real estate auction. Another benefit of selling an inherited property through an auction is that doing so can increase the amount you get for the home or other property. Just because home auctions can be an effective way to sell problem properties, doesn't mean that all properties sold in an auction are problem properties.
When you sell your home through a real estate auction, you'll have to pay the additional costs associated with working with a veteran auction company.