Home auctions are one option for banks and homeowners seeking to sell a home fast and for a fantastic price. While home auctions are often earmarked for foreclosure properties, an auction is also an option for homeowners who have an abnormal or eccentric home to market. Houses that go to auction provide several benefits over traditional sales.
Fair Market Value
One of the biggest advantages of a home going to auction is that the high likelihood it will market for its reasonable market value. This happens when buyers compete to place the winning bid, forcing the cost of a home to the highest price buyers are prepared to pay and the lowest price a seller is prepared to accept. This benefits both sellers and buyers, who can use the auction procedure for a gauge of the home’s value. Sellers do not need to research the fair market value before setting a sale price, and buyers can set their own prices independently without worrying about coming far below, or over, a listed price.
Buyers who wish to bid on a home at a home auction must register with the real estate company overseeing the auction. This allows the real estate company to preapprove buyers according to creditworthiness. When it is time to bid, just preapproved buyers can take part, plus they know beforehand the seller’s reserve price. This guarantees that a buyer will have the ability to earn the purchase and stands as a significant advantage over traditional home sales, where waiting for a buyer to be accepted can take extra time and create a sale to fall through at the last minute.
Auctions are much faster than most traditional home sales. Sellers can schedule a date and know exactly when the home will sell. This can be useful in scheduling a move or making other programs that require financial obligations. The speed of a home auction cuts down on the expense of selling a home, since there’s less work to get a real estate agent to perform by promoting the house, holding open houses and administering showings. Homeowners also save by cutting down on maintenance costs while the home is on the market.
Home auctions offer an option for homeowners who have a home that would be tough to sell or worth on the open marketplace. This is especially true for homes offering some sort of unique feature or unconventional features which may interest a particular group of buyers but be tricky to describe to others. Even for homeowners who wind up selling a home in a more conventional way, auctions offer an option for contrast purposes.