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In 2018, more than five million existing homes got sold to new buyers. Need to sell your house quickly and easily? Selling at auction might just be right for you.
There are lots of ways to sell a house. You can go through a real estate company, or sell your home “by owner.” But selling at auction is becoming an increasingly attractive option for homeowners.
Contrary to what some people think, selling at auction doesn’t mean you’re desperate to sell. An auction can actually help you get the best price for your home with the least amount of worry.
Thinking about selling soon? Check out these tips for selling your house at auction to decide if this selling method is right for you!
Why Put Your House up for Auction?
First, let’s take a quick look at the reasons why you might decide to sell your house at auction.
Attract the Right Kind of Buyers
From investors to ordinary buyers, people who buy homes at auction have one thing in common: they’re serious about the purchase.
Auctions allow ordinary people to buy homes even in extremely competitive markets. This can translate to a win-win for both buyer and seller. Because the people shopping the auction are serious about making the purchase, you won’t have to deal with wishy-washy buyers who back out at the last minute.
Also, the highest auction bidder often has to pay a percentage of the purchase price when the sale gets made. This gives them an incentive to finish what they started, so you aren’t left scrambling to find a new buyer.
Get More for Your Home
With an auction, the competition can get fierce. For you, that often translates to a higher selling price.
People buying at an auction easily get caught up in the heat of the moment. They might end up spending far more than they’d usually spend, thanks to the pressure of competition. And what buyer doesn’t want to sell their home for more money?
This works especially well in competitive markets, but the same effect can also work even in slower markets sometimes.
Sell Your House Faster
Selling your home through traditional methods often means taking longer to sell. At an auction, you can plan ahead for the exact date your home will sell. This saves you money by letting you sell faster, instead of continuing to make payments on your home while you wait for a buyer.
Our Top Tips for Selling Your House at Auction
Not sure how to auction a house — or how to get the best results when you do it? These tips will help make sure your home gets sold fast for the right price.
Set Your Budget
Selling isn’t free — even when you sell at auction. You’ll want to set a realistic budget to cover the necessary fees, so you aren’t stuck with any unpleasant financial surprises.
Expect to pay an auctioneer’s fee of a percentage of the home’s price. The exact fee will depend on which auctioneer or auction house you work with. You might sometimes also need to pay other fees, such as those for advertising or legal purposes.
Check with auction houses to get an idea of what you’ll need to budget, so you can start preparing early.
Research Auctioneers and Auction Houses
Now, it’s time to pick the actual auctioneer (or auction house) to sell your home.
Look for an auctioneer or company that specializes not just in selling homes, but in selling homes like yours. If the homes they typically sell are similar to yours, you’ll find the right kind of buyer who’s looking for a home like yours.
You can research potential auctioneers through the National Auctioneers Association, or by looking for local auctioneers in your area. Look for someone reputable and experienced with your kind of home. They should have sold a number of homes before, and have a plan for advertising your home before the auction.
Consider Your Pricing Options
Many auctions allow you to set a reserve price. This means setting a minimum price for selling your home. If the bids don’t exceed your reserve price, the home won’t sell at that auction.
The reserve price helps ensure that you know the minimum price you can get for your home. However, there’s also the option of an absolute auction, where the home goes to the highest bidder with no reserve.
The right choice can depend on your unique situation. Sometimes, an absolute auction will bring you a higher price, although there is a bit more risk involved. In a more competitive market, you might choose an absolute auction, while for slower markets setting a reserve price is often wise.
You might also work with the auctioneer to set a guide price. This price won’t necessarily get met, but it does provide a guide to what you want your home to sell for.
Advertise and Prep Your Home
While the auctioneer should take some responsibility for marketing a home, you can also help by getting your home ready for a sale. Selling a house at auction takes the same prep work as selling a house traditionally.
Properties that look nice command higher prices, so make sure to prep your home for viewing for potential viewers. Make sure the curb appeal is compelling for anyone who drives by to take a look.
Advertise as much as you can, too. Use your personal networks and social media accounts to spread the word for free. If you want to make the investment, you could even take out an ad to boost interest.
Ready to Sell for Top Dollar?
In many markets, selling at auction will get you the best price for your home with the least work. And with these tips for selling your house at auction, you won’t have any trouble getting the results you want.
Of course, sometimes a few well-timed updates can help your home fetch an even higher price. Make sure to come back to this site for some great improvement and remodeling ideas!
Post updated: 08/19/2021
