Why Sell Real Estate On Auction?

A real estate auction is a quick and innovative method of selling real estate. It is a fast-paced, intense process that involves the sale of public property through the process of open, competitive bidding. It is by no means confined to properties such as foreclosures, abandoned buildings, etc.

When it comes to selling real estate you, as a seller, have three choices. Do you sell at auction, through a real estate agent, or for sale by owner (FSBO)? So, what is the best option for you? When deciding, there are a few things you need to take into consideration.

TIME: How much time do you have to invest, and how quickly do you want the sale to happen?

MARKETING: Do you have the means, finances, and skill for proper marketing?

PROPERTY: What is the best choice for you considering the condition and value of your home or property?

While For Sale By Owner (FSBO) may seem alluring with no realtor commission, it is by far the least efficient or effective method of sale. If you have plenty of time, have a flexible moving date, are experienced at marketing, and understand real estate regulations and restrictions, FSBO may be the right choice for you. However, most people do not fit this profile, so it’s not surprising that many of these listings don’t sell, and if they do many of them sell at a lower price than with other methods.

Selling property through a traditional realtor is a much more common method. While it definitely has its pros, such as not having to deal with marketing, it also has a few drawbacks. One of the biggest drawbacks is that you have no definite sale date. A sale may not take as long as an FSBO sale, but it typically takes longer than a sale by auction. There is also a high possibility that interested buyers may request additional work to be done to the property or expenses covered when they make an offer. If more than one buyer surfaces, those buyers don’t directly compete with each other or see each other’s offers.

Choosing to sell by auction is the most time efficient and hassle-free way of selling real estate. With auction not only do you have a set day of sale, but you can also sell it as is. This means no requests from the buyer to do additional work to the property or add conditions or contingencies. This does not mean that a high-value property will not sell at auction, simply that you do not need to worry about putting extra work for the buyer at the buyer’s request. What they see is what they get. Last but not least, all marketing services would be provided by yours truly, Bright Star Auctions.

So why should I choose to sell my real estate on auction? Will I get my money’s worth if I sell by land auction? Can I be guaranteed that my property will sell? These are probably just a few of the questions you are asking yourself.

An auction is a speedy process and a quick turnaround. An auction is immediate. It happens during a set time and is completed during that time. It is quick and efficient. You can rest assured that if you sell by auction your property WILL sell and it will sell during that set auction time. Unless you choose to put a reserve on it, of course.

You set the time and place of your sale. It is as simple as that. You work with us at Bright Star to schedule what works best for you. Then we will take care of all your marketing. Included in your specialized marketing strategy will be use of a comprehensive mailing list, social media advertising, print advertising, website presence, and visible signage. Our exhaustive advertising campaign is designed to reach everyone that might have interest. Selling property through auction marketing typically takes no more than 30 to 45 days, with the auction itself simply the conclusion of the process.

We gather all the interested parties together and find out who will pay the most - in a dynamic, exciting setting. Excitement and competition sometimes send prices much higher than expected. Statistic have shown that whether good or bad economy, auction remain a steady force. People love auctions, so no matter the economy if there is an auction people will still come. So, if you are worried about your property not going at market value, don’t be. Chances are your property will bring just as much, if not more, through auction than if sold through a traditional realtor or FSBO.

A definite sale date motivates buyers by giving them a goal and a deadline. With auction there is much less negotiation. There is little to no haggling over price or merchandise. The auction method is quick and efficient. When people bid, they make a commitment to buy the property at that price without discussion or debate. Also, properties are sold as-is auction day, encouraging buyers to do their research beforehand. Because of the above-mentioned things less time is wasted dealing with unqualified buyers. Buyers come prepared to buy. Auction-goers come with money in their wallets, purses, and hands and are prepared to go home with property. It is a seller’s delight. For real estate auctions, this is especially advantageous because buyers must qualify through a nonrefundable deposit if they are the winning bidder.

The National Association of Realtors suggest using the two-thirds rule to decide whether you are qualified to sell through auction. Assess the market, the property, and the seller. If two out of these three favor an auction, typically it’s the right choice for you.