Selling Your Home at AuctionThere are two main reasons people selling real estate miss out on the benefits of a professional auction strategy. Either they assume (incorrectly) that the process is for distressed properties or they assume (incorrectly) that the process is mysterious. If you’re thinking about selling your home or already trying unsuccessfully, you owe it to yourself to explore the auction strategy. Who doesn’t love massive targeted marketing and buyers competing with each other to own your property? The hotter the market, the higher the price goes, and there’s no negotiating or hidden costs to deflate the great price you got. Definitely worth a quick look! Though professional real estate auctions have been around for years, most homeowners don’t really understand how they work. As a result, they stick with what they know and end up taking the first offer that comes along, or endure the ongoing swirls of an ordinary listing approach. While professional real estate auction firms like Cates Auction are highly selective about properties they will accept for auction, the process for the fortunate sellers is surprisingly simple. Herewith, the six simple “S’s” to selling your home at auction…
- SEARCH. There are more choices than you think and like any industry, there is a wide gap between the average and the exceptional. Real estate is too big an investment to risk with a company that doesn’t have the chops. Check their recent and current auction listings. A full calendar of real estate sales is a sign of success. Read their testimonials and reviews. Ask for professional credentials of everyone who will work on your project. (There should be a full-time staff with individual areas of expertise.) Of course, be sure they are licensed Realtors® and are active members of local and national real estate boards as well as the National Auctioneers Association.
- STRATEGIZE. Every property is different, and a full-service auction company will have a number of ways to approach the sale. After they’ve done a full analysis of your property their free consultation should include recommendations for how to offer the home, what work (if any) could affect the sale price, and which method(s) of bidding will work best for you situation. Make sure their strategy is tailored to your home and not just a one-size-fits-all approach that’s easiest for them.
- SELECT. When do you want your home sold? Choose the date that coordinates with your move or meets your financial objectives. The auction company will build your project plan around your schedule and make everything happen when you want it to. Remember that a successful auction needs adequate marketing time to engage all prospective bidders. Typical advertising campaigns run only 30-days.
- SIT BACK. The terms of your sale straightforward and are completely set in advance. Don’t worry about negotiating, pushing paper, doing ongoing work on the house, or jumping through hoops by would-be buyers. As the broad customized marketing campaign unfolds and buyers begin surfacing, your auction company handles all the details all the way through to the auction.
- SELL. One person will pay more than anyone else for your home, and when the gavel falls that’s your buyer! What’s more, that buyer will be buying it in “as is” condition AND will be paying all the commissions! (Note: Be sure your auction company encourages and can facilitate pre-auction offers in case your best buyer decides to move especially fast.)
- SIGN. Since the buyer has entered into a non-contingent contract (no strings attached) and has put down a sizable deposit at the end of the auction, your closing will take place a few weeks later — with no additional requirements on you.