Using An Auction To Sell A House Quicker- Benefits and Disadvantages
If you’re looking to sell your house fast in California and for a competitive price, simply continue reading to discover whether you’re better off selling your property at auction or whether you’re better off selling your property for cash or selling your house the traditional way.
Benefits Of Selling A Property By Auction
1. As the vendor, you’ll be able to set your auction’s terms and agreements
As a vendor, you’ll be able to stipulate your auctions terms and agreements. As an example, you’ll be able to set a reserve price and will be able to decide the date on which your property’s deeds are transferred over to your auction’s winner. If you choose to place your home on the market and to pursue a traditional sale, your buyers may include a lengthy list of terms and conditions with their offer. Whereas if you choose to auction your property, your buyers won’t have the right to stipulate any terms and conditions.
2. If your property fails to sell, you’ll be given the contact details of potential buyers
If your property fails to meet your reserve price, you may still be able to sell your California property in a short time frame as your auctioneer will give you the contact details of the winners of your auction. Who may be willing to negotiate a traditional sale?
3. You’ll have the opportunity to sell a property within a short time frame
Whether you’ve already purchased a new home and plan to move into your new property as soon as possible or you require cash in a hurry, if you’re looking to sell your property in a short time frame, you’ll be far more likely to sell your property quickly by opting to hold an auction. Just ensure to market your auction in advance, so that a decent crowd of buyers turns up, in order to increase your chances of sparking a bidding war. It’s well worth investing in physical signs as well as advertising your auction in your local newspaper and paying for online advertisements.
4. An auction is legally binding
Did you know that up to one-third of property agreements which are conducted through a real estate agent fall through, before a property has changed hands? So if you don’t want to waste your time, it’s worth considering selling your home by auction as once you’ve exchanged contact details when your winner, they’ll be legally obligated to go through with purchasing your property, for the price which they bid.
Disadvantages Of Auctioning Off Property
1. Choosing to sell your home by auction may alienate some potential buyers
Your average house hunter will be far more comfortable putting a traditional offer on a house that they’re interested in, rather than participating in an auction. One of the reasons why house hunters may shy away from attending a property auction is that they may be confused by the exact process of bidding for a property at auction.
Another reason why house hunters may avoid auctions is that they may be afraid of getting caught up in the moment and bidding too much for a property. As in the heat of a property, an individual may win an auction in a bidding war and be forced to pay a far steeper price, than they had originally intended to bid. So it’s unlikely that first-time property buyers or property buyers with little real estate experience will place a bid on a property that is being sold at auction.
2. You’re effectively gambling with your property’s sale price
By choosing to list your property for auction, you may end up having to accept a bid, which is significantly lower than your ideal selling price. While you can place a reserve price on your auction, which will prevent your property from being sold for a laughable sum, there’s absolutely no guarantee that you’ll receive the best possible price for your property. As in an auction, the winning bidder only needs to outbid their competition by a small amount and may have been willing to pay a higher price for your property. However, there is also a chance that you may luck out and interested potential buyers may enter a bidding war, which will drive up your property’s selling price.
If you’re not willing to gamble with your property and are serious about selling your property within a tight deadline, you may be interested in selling your house for cash. Our team of experienced, real estate professionals is constantly on the lookout for properties to add to our database. So if you’re keen to sell your property for a competitive sum, instead of leaving your house’s sale price to chance, it’s well worth talking to our friendly team for more information.
3. There’s no guarantee that your auction will draw a crowd
If you invest a sizable sum on marketing your auction and paying for an auctioneer, there’s still no guarantee that your auction will draw a crowd. Even if your auction manages to draw a sizable crowd, only a small percentage of individuals will have any intention of bidding for your property. With the rest of your crowd, turning up to simply watch your auction play out.
If you can’t afford to invest in marketing for an auction, which may not meet your reserve price, you’re definitely better off selling your property for cash or placing your home on the market. As it’s pricey to host more than one auction, in order to sell your house.
Is it worth selling your property at an auction? If you’re confident that you can attract buyers to an auction and remember to place a reserve on your auction, it may be worth trying to sell your property at auction. However, if you’re not fond of gambling or taking risks, it may be wiser to sell your property for cash. As you’ll be sure to receive a fair, competitive offer and to receive payment in full, within a timely manner!