Selling Your House at Auction
Real estate auctions can offer many benefits to the seller. Many sellers find themselves in a situation with various pressures. They need to sell quickly, perhaps due to a relocation, or they found a new home faster than anticipated, or they inherited an estate. They end up carrying additional mortgages, utilities, maintenance, upkeep, even just the exposure to owning two homes at once is stressful. Many individuals turn to cash buyers for a way to relieve the pressure and find a quick fix. While cash offers are helpful in many situations, it may not be the only answer.
Real estate auctions can offer several of the same benefits. Such as bringing cash buyers to the table, offering quick close dates, setting specific terms like no option as-is contracts, no repairs, buyer to pay all closing costs among other terms. The seller can remain in the drivers seat and set these terms within the auction transaction.
Another benefit, is clearer fees. In many cases, the buyers will pay a buyers premium that will cover all the professional fees and administrative costs earned in the transaction. So, the home owner can watch the results of the auction and know that the hammer price will be theirs to keep; less any liens, mortgages, taxes and title policy fees.
While auctions appeal to the investor community, the homeowner can be confident that they are not leaving money on the table. As opposed to a fire sale strategy, which would mean pricing the home very low, putting it on the market, and perhaps taking the first low offer that comes in, the auction will introduce the property at the rock bottom price and work the price up as the demand builds.
The advantage to the auction over fire sale is that the offering has a timer or expiration. The auction will end on a certain date at which time the bidders need to have placed their bids. The home owner can wait for that duration in order to receive all interested bids via the auction. As opposed to a traditional listing, where the home owner may receive an offer. It may be their only offer, or there may be more. However, it’s just a waiting game with a bit of a gamble. In the meantime, they risk that original offer walking away.
Finally, the cash offer companies all work on different models and thus their price points will vary. Some individuals have the time and energy to vet several companies, and meet with them, discussing the property and taking bids. However, this is a big task, and many do not have the bandwidth to do so. The auction method satisfies this same exercise by engaging motivated investors to evaluate the property and determine their best price. The competitive open bidding environment allows the buyers to push the price to the best possible position the market can bear.
Seasons of Life Real Estate Group LLC specializes in auction property in the Dallas-Fort Worth metroplex. For more information, contact Owner and REALTOR Crissy Broeske at 214-906-8651 or firstname.lastname@example.org to discuss your property.