Tuesday, February 10, 2009

Should I Consider A Home Auction?

If you've had a "For Sale" sign in front of your house for months, you want something to happen and you want it to happen yesterday. Why not consider an auction? I know. When we think of auctions, we tend to think of auctions strictly for distressed properties. However, this is not true any longer. Selling premium homes via auction has become somewhat commonplace in Los Angeles, Miami, and New York. Now the trend has gained momentum in the Baltimore and surrounding areas.
The idea makes good marketing sense for sellers who missed the real estate boom over the last few years. What are some seller benefits?
It significantly lowers your commission as seller
You have a quicker sale ( 5 weeks from signing agreement to auction date)
Maximum buyer participation
Maximizes dollars
No contingencies
Buyer pays ALL transfer taxes and recordation fees.
These are just a few benefits.

Now suppose you are the buyer? What benefits to you?
Auctions are fun
Open, fair bidding process
Simple and transparent (Since you receive all information needed prior to auction; thus no surprises)
Buyers buy at their price
The decision to bid is reinforced by the immediately preceding bid
6% buyers premium is financeable.

So, auctions are good. Auctions can maximize the value of a property because of the competitive bidding process.
Buyers are eager to bid for a chance at a bargain. This is the only time you can go and buy something at your price.

If you want any more information on the process involved or a list of homes in the area that are offered through auctions, contact me.

No comments: