Selling your home via an auction comes with its share of benefits and drawbacks, which I’ll share with you today.
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Thinking about selling your home through an auction? Here are some of the pros and cons of doing so:
- You can sell the home quickly in a specific time period.
- A bidding war can lead to a higher sales price.
- The home is usually sold as is, so you won’t have to worry about making any repairs to it.
- You might not meet your reserve price (the price you set that’s the lowest you’re willing to sell the home for) if there’s not enough pre-marketing activity. I definitely recommend setting a reserve price, otherwise, your home might end up selling for $1.
- You may have additional commissions, costs, fees, and expenses. Most real estate agents aren’t auctioneers, so you’ll have to pay for those additional services.
- Many retail buyers don’t like the auction process—they have to pay additional fees as well.
Home auctions are typically used by sellers whose homes aren’t selling quickly enough in a slower market, so since we’re in a really fast market, it may not apply to current conditions. Banks also tend to use auctions to sell homes that are in a state of disrepair.
You have the choice of either auctioning your home through the public trustee’s auction at the steps of the courthouse or through a private auction company. My team has experience with both, so if you’d like more information about them or you have more questions about the auction process, don’t hesitate to reach out to us.
As always, if you have any other questions or you’re thinking of buying or selling a home, feel free to call or email me. My team and I would love to help you.