When it comes to properties, traditional wisdom says that auction sales are only meant for those sellers who are desperate or for bank-owned real estates. But in the last few years, auction sites have experienced a steady increase in the number of properties sold and far greater buyer engagement level from owner-occupant consumers.
Conventional methods of selling real estate involve listing the property on the market and carrying out some marketing efforts to spread the word about it. On the other hand, an auction is a unique and highly-effective way of selling real estate owing to its dynamic characteristics. The auction process makes use of accelerated marketing, meaning that your property is advertised through various medium, thus creating enough buzz. Let’s take a look at five reasons explaining why selling your real estate by auction can be beneficial and more rewarding.
1. Creates Competition
Auctions establish a competitive bidding environment and have the capability to create an emotional connection between the buyer and the property in quite a short while. This may help increase a real estate’s value, thereby helping achieve the finest result.
2. Offers Greater Control
Since auctions are time-definite, you as a seller will have the authority to decide how and when to sell your property. When that auction sign is put up, it informs potential buyers that you have decided how to sell your property and on what day. This means no more listing, waiting, praying and hoping. In addition to that, no more Open Houses where people trod around, chat, stare and compare but never really buy anything.
When potential bidders come to an auction, they have already done their homework and registered to do the bidding. They are positive that the real estate will change hands today, and they want to be the ones that get their hands on it.
Knowing the exact date your property will sell also allows you to budget accordingly. You can avoid steep carrying costs such as taxes, mortgage payments and home maintenance by calculating for an accurate sell-by date instead of listing a home via the conventional way and just hoping for the best.
3. Transparent
When selling your property through conventional means, no purchaser bids more than they should. With an auction, however, various bids are the norm and all bids are visible and open, so the marketing process creates a level playing field. A potential buyer can choose to bid or not bid with a crystal-clear understanding of the property’s demand. Limitations and rumors have no room, and claims such as “another party is interested in the property” have zero meaning since you as a seller can easily see and assess a solid bid with money right on the table.
4. Saves Time and Money In a Slow Market
Strong sellers’ markets are not the only time where auctioning makes an ideal option; selling your property in a slow market can also be quite beneficial. In tough market conditions, your best bet is to try and sell your home as fast as possible before it becomes too undervalued and stays on the market for way too long. In order to achieve a correct market value before your property’s value falls even more in a buyer’s market, consider the option of selling your home effectively and quickly through a real estate auction.
5. Unconditional Contract
Selling your property through an auction gives you an instant, unconditional contract. Once the gavel falls, a purchaser becomes bound to the contract and then a quick exchange takes place. As a seller, it gives you the lucidity in terms of the sale.
Buyers can also see who they are competing with and sellers can also see what price the market is willing to pay for their property.
These are just some of the reasons that have resulted in the growing popularity of selling homes through an auction as opposed to conventional methods.
Thomas R. Hunt Auctioneers has developed a proven system of maximizing sales potential and will sell your home fast. Contact me today for a free marketing analysis at pthessen1@gmail.com.
-by Perry Thessen
