There are numerous benefits to the seller when considering an auction as a means or method to sell your home or property. First of all, under a traditional listing with a realtor (and I am one in addition to being an auctioneer), you have many “tire kickers” come through your home or wanting to see your land. Most are not prepared to buy or nor have been qualified for a home or land purchase. Whereas buyers at an auction come well prepared to buy on auction day.
Secondly, your holding cost is drastically reduced under an auction. Think about the number of additional house payments you will make if it takes 6 months or more to sell your home the traditional way. Keeping insurance in place, additional pro-rata property taxes, lawn maintenance, utilities, etc., are just a few of additional expenses you will incur if your home doesn’t sell quickly. With an auction, your home can be sold 30 to 45 days from signing an auction agreement. So you as the seller, will know exactly when the property will sell and you will be able to make appropriate plans.
An auction creates a sense of excitement and urgency. Under a traditional listing, the potential buyer doesn’t know if there are other interested parties. At an auction, when there are 8 to 10 or more people present at the same time, auction prices can exceed the negotiated offer from a single buyer.
Speaking of negotiating a contract, an auction takes the seller out of the negotiation process because with an auction, the buyer is buying “as is, where is, no warranties implied.” And closing typically takes place 30 days or less from the day of the auction.
I know as a home owner, you love unscheduled showings. For example, another realtor is sitting out front of your home early one evening with his/her client wanting to see the home now… and your children have just rearranged the orderliness of your home. With an auction, we have a schedule one or two day event to show the home to potential buyers and that is it.
How does an auction benefit the seller? You get the home sold in the shortest time frame, at market value. Market value is defined as what a ready, willing and able buyer, will pay for the home or land. Got questions? Give us a call. We’d love to take to you about your auction needs.