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Home Auctions | The Ins and Outs


Home Auctions

There’s a type of home sale that’s really gaining in popularity these days – the home auction!

Although auctions are not anything new, many people have begun using this type of sale because it’s totally different than doing things the “normal” way. After all, ever since the housing market crashed, people have had to get creative when it comes to selling their homes, and many people have found that a home auction has exactly the creative benefits that they are looking for.

You probably think of an auction as something you do for an old run-down house or as part of an estate sale, but today’s auctions are done for many different homes – many of which are in great condition. These homes are also auctioned off at all kinds of different prices.

One of the biggest benefits of a home auction is the speed in which you are able to sell your home. When you sell your home the old fashioned way, you typically have months of open houses, showings, and, finally, negotiations. But when you auction off your home, you have one day to go through all of that – and at the end of that day, your home is sold, and you have cash in hand.

The speed at which you are able to sell your home is not the only benefit of auctioning your home. When you sell your home the “traditional” way, you run the risk of having to show it off to people who aren’t serious about buying it. But when people come to an auction, they are there to buy.  

Another advantage of an auction is that with so many bidders, homes are more likely to sell for much higher than you could ever imagine – or would even dare to ask in a listing. The competitive nature of humans sometimes turns the auction into wanting to win, and in the heat of the moment, a bidder may spend more than they would if they time to really sit and think about it! 

There can be some downsides to auctioning off your home, too, though. Although you can request a reserve on your home, all sales are final, and if the winning bid is less than you were hoping to get, you can’t cancel the auction and try a different route. Many auctioneers explain that you may be sacrificing speed for price. And, if for some reason the house doesn’t sell at all, you’re still stuck paying for the auctioneer and all of the marketing materials you used to promote the auction.

If you are considering going to an auction to buy your next home, don’t expect it to be a fixer upper that’s going to be one giant project. There are plenty of great homes in perfect condition on the auction block these days.

Before attempting to purchase your next home this way, do your homework and pick your high price point – and, most importantly, don’t let yourself get carried away in the heat of the moment! And, of course, make sure you have secured your funding before you make a single bid.

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