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Auctions An Option For Home Sellers? |
By:
Dennis Watson |
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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 agent's 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 can't 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.
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Article Source: http://www.friendsofvista.org/articles/article30808.html |
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