Real estate auctions are becoming one of the most popular ways to sell property in the real estate industry today. In the past, this method of selling a property was reserved for foreclosures and bankruptcies. However, in today’s world, it is becoming much more popular for other types of sales also.
There are still many bank owned properties out there that are being auctioned off. In fact, this is still the vast majority of the auction market. However, there are also a lot of regular homeowners that are deciding to sell their property in this manner.
Let’s say that you had a house that you wanted to sell quickly. You are still current on the payments and it was not at risk of going into foreclosure. You can simply hire an auctioneer to come in and list your property as part of a real estate auction for you. With this technique, you should be able to find a buyer as soon as you hold the auction.
Before the auction takes place, potential buyers can come in and inspect the property. This is when the buyer has to do their due diligence on the property and make sure that everything is in order. If the buyer decides to back out after the auction has closed, they will have to pay a substantial penalty to the seller.
Although this technique can come in handy when you are trying to sell a property fast, there are some drawbacks associated with real estate auctions. For one thing, you are definitely not going to be able to sell the property for above market value. In most cases, the house is going to sell for close to market value or a little below it. This means that you have to be comfortable with taking a discount on the sale of the house in order to move it quickly.
One mistake that many homeowners make is to not have a reserve price on the auction. A reserve is the bare minimum price you will accept at auction and you can actually set up a reserve price in advance. If the reserve price is not met, the sale does not go through.
Another common use for real estate auctions is to help bankrupt developers get rid of their property. Many developers have tried to build up large subdivisions in recent years and they have not been able to sell all of the units that they had. By using an auctioneer, the developer can get rid of all of their remaining lots and houses quickly.
Real estate auctions are becoming much more popular than they once were. If you are considering selling your house and you need to do so quickly, this should be an option that you consider. Just keep in mind, you may have to sacrifice a little bit of the equity in your house during this process.
Hello Trevor, REI Brain, ny name is Kevin. I live in Massachusetts and am a beginner REI. I only have on multifamily property but am quickly becoming obsessed with the game. I am currently self educating myself as much as possible right not and just came across your website. I am looking foward to learning as much as I can from you and everyone on your site.