The Pros and Cons of Selling Your Property via an Auction
If you are thinking about selling your real estate by auction but wonder if it is the right move for you, consider the pros and cons to make an informed decision. As selling your property via auction is not the most travelled route by home sellers there will be many questions that arise along the way.
The Pros of Selling Your Property through an Auction
Often times, a sale is contingent upon repairs or modifications to the home that are requested by the buyer. When you are selling your property through an auction the properties are sold as-is so you do not have to worry about putting more money into the property in order to sell it.
Selling your home through an auction will also allow you to save decorating or staging costs associated with open-houses or listing your property by traditional means. Depending on how long your property sits on the market will contribute to increased upkeep costs as well, maintaining the lawn, etc.
A great benefit for many home sellers looking to unload their property through a home auction is that you set the price you will accept. There will be bidding in auctions but ultimately you will determine the lowest offer you are willing to accept.
There are no Realtor fees or closing costs associated with selling your home via an auction. Though there will be auctioneer fees. Another pro would be quicker turnaround of your property, no waiting on buyers to come knocking on the door.
The Cons of Selling Your Property through an Auction
When selling your home through an auction there are auctioneer fees assessed for the auction service and can often times be more expensive than using a Realtor. For example, if the property doesn’t sell during the auction the seller is still responsible for the auctioneer’s advertising expenses and any fees associated with the auction. This isn’t the case when using a Realtor. They only earn a commission upon the closing of the sale.
Locating a skilled auctioneer can also create unnecessary problems when it comes to selling your home. There is a possibility you could walk away with less because the auctioneer is not capable of enticing buyers to increase their bid.
One last thing to consider when selling your home through an auction is the turnaround time. While it is considered a benefit to sell the home in a quicker time frame, you must also take into consideration that if the home sells during auction you will typically have to vacate the home within 28 days.