At first glance, the idea of property auctions seems like it would be a crapshoot. Distressed crime scene, double homicide, that may or may not be haunted by the ghost of Schizo the Clown is what actually pops into my mind, but that isn’t the reality. Property auctions can have great benefits for the buyers, sellers and realtors, also known as everyone involved.
Do Your Homework
Buyers should do their homework before the auction to prepare to see multiple houses and do a quick assessment of them. Those who do not do their homework risk the chance of missing their dream home at the best price. There is not a negotiation period, because at the end of the auction the price is set and the house is sold. There will not be a secret buyer because to buy you must be present in some form where the other bidders can see you. The only downside financially is that you need to go in with your financing plan in mind.
Value For Your Money
Sellers have a definite closing date, the end of the auction. You will have to jump through a few hoops for the auction house but once you get that part taken care of you get to watch them take care of the rest. Similar work to get the word out on your property, create your due diligence package, set a minimum bid…all things the auction house will work with you on, because they are the experts here. No waiting for bites, no need to show the home to a parade of uninterested buyers, because the auction goers did not come to browse. While you may get a lower ending bid than you wanted, because of competition you may get a much better price as well. Bottom line you get a competitive true value at property auctions.
Realtors fit into a special niche using auctions that can have lasting value to them. The homes that you sell are sold, but not all bidders leave having made a sell. They become leads for other homes you have on the market. Or you become the buyer; buy low, paint, carpet, exorcise the clown and flip.
In short, property auctions give hard deadlines, remove maintaining costs and provide the chance for great deals. All in all everyone can walk away happy.