All across the nation every week, there are real estate auctions that provide an avenue for sellers wanting to unload a home or business. It works as a quick alternative than using traditional methods of selling a property, and avoids the long time waiting for offers to arrive, or the property to close.
As part of the auction process, potential buyers all gather together in a single location and bid competitively against one another on the available property. Chances are very high that the business or home will sell on the day of the auction.
Auctions are very beneficial especially if the home or business has some unique aspect, which might be high-level interior features for the location. Many sellers that enjoy participating in home and business auctions are usually motivated to find a buyer for their property and move on.
The easiest way to get started in learning how to sell through an auction is to locate and experienced auction firm. They usually have their own agents that are already comfortable in handling all types of real estate properties at auction. More than likely you will need to pay them a commission either directly to the agent or to the auction firm that is coordinating the sale.
In addition to that, there will be marketing fees which typically represent 2% or more of the sales price. More than likely you will need to compare the commissions between different auction firms so that you can negotiate the best price. Once satisfied, sign the contract with the specific auction firm that best suits your needs.
It is important to prepare the home or property to make sure it is ready for the auction. Usually, the agent for the real estate auction house will give you free advice on the best ways to prepare the property for the sale. Sometimes this means that the property needs to be stage. This is where furniture is brought into the home that will significantly impress any potential bidder that is looking through the home before the auction begins.
In addition to staging, you likely need to rearrange the furniture, decorate or paint the home’s interior or exterior to make it as attractive as possible. There is a fine line though of spending too much on the staging process that might not be returned during the sale.
The entire process of putting the home or property up for auction is quick. Usually, the agent has a complete understanding of all comparable sales prices in your neighborhood, and will understand exactly what to ask for a minimum bid. You will likely be asked if you want to opt in for participating in an absolute auction. These are the type of auctions that will accept the highest bid whether or not it is at the price you want.
On auction day, you do not need to attend the auction but can choose to instead have a representative there to act specifically on your behalf. The potential buyer that is the highest bidder will place a deposit and allow the house to go to escrow.