Auction: Going once, Going Twice, SOLD

Until just recently, when I saw an “Auction” sign in front of a property I would think the owners were in distress. Ugly yellow auction signs were at the street corner for weeks, on auction day cars were parked all over the yard, and people hovered outside as if they were expecting a three ring circus event. It seems I was wrong about selling your home through the auction method.

Curiosity got the best of me so I attended an auction specialist course. Auctions have been around for years to sell virtually everything under the sun to the highest bidder. Within the past ten years eBay has emerged the strong contender to auction houses and the occasional upscale yard sale. But in today’s real estate market you need some options to create a market for your home when there are 7 homes for sale in your neighborhood.

The auction process has seen many improvements with technology and time tested marketing ideas. To begin the process, each seller needs a few moments of education. The home needs about 6 weeks of aggressive marketing with signs, open houses, classified ads, internet ads, and a 24 hour free hotline for detailed information. Statistics show that about 40%-60% of the homes receive an offer before auction day because of increased buyer traffic.

Instead of paying a commission, the seller pays a marketing fee of $1,800-$2,500 depending on the price range of the home. The buyer pays a 10% premium (on top of the highest bid price) which covers all other selling costs and commissions. Auctions are non-contingent “AS-IS” sales, except for the three day review period for home owners documents and generally settle within thirty days (negotiable).

Auctions are not for everyone. However, it did work for one of our clients by attracting the right buyer and the seller was able to move on with their life. If you have any questions about this article or the auction method of selling your home, give me a call or email.

Mike Dean
Certified Auction Specialist
1-866-238-1342
Mike@Dean-Morris.com