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What You Need to Know About Selling Real Estate at an Auction

what you need to know about selling real estate at an auction

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Published date:

September 15, 2021

Last updated date:

January 23, 2024

By Caroline Kirby

If you're looking to sell (or purchase) property, an auction may be a good place to start. This rising trend for selling real estate isn't only for foreclosures or fixer-uppers. In fact, the National Association of Realtors says this method carries a lot of benefits for sellers. What is an auction, and how could it be a good method to quickly sell your real estate? Here's a quick guide to help.

The Benefits of Selling Your Property via Auction

"Going once, going twice...sold!" is the idea many of us have in our heads about auctions, but property auctions look a little different from what we see on our tv screens, and while it's a straightforward process, there are some important steps and processes to prepare for. A property auction is just what it sounds like -- your property is put up for sale, potential buyers make bids, and the highest bidder will take the lot. But what are the benefits for you as the seller?

• This is a great option for sellers who are looking to sell their property quickly

• No staging is necessary -- your property will be sold as-is

• The buyer is responsible for their own inspection after purchasing

• Eliminate long-term costs • Allow your property to be viewed by people anywhere in the world (as many real estate auctions are online)

• You can set the time and date of the auction and make it work with your schedule

• Interact with committed buyers -- no more losing time over people backing out of deals

• Get real market value While auctions do have a bit of a competitive atmosphere, they generally benefit both buyer and seller when it comes to time, negotiations, and reaching a fair price. So, how do you get started? First, you need to do some research on auctioneers. Many offer free consultations and can give you some expert insight on how to prep for your first auction. Some things you'll want to consider when choosing an auctioneer are similar to what you'd look for in a realtor.

Here are some questions to ask:

• Do they have a current state license?

• Can they provide references?

• Do they have an advertising plan?

• Will they see the sale through from beginning to end?

• How do they qualify bidders?

Additionally, ensure that the auctioneer is experienced in the kind of auction you need. There are many auctioneers that work with foreclosures or condos, or farms. Each of these properties is unique and will need its own plan. Another thing to consider is if your auctioneer will require you to have a real estate agent -- the good news is that many real estate auctioneers are agents themselves.

Real Estate Auctions Could Be Your Best Option

Although property auctions have had a poor image in the marketplace in the past, times are changing! Most auctions today don't come from foreclosure but from sellers who are looking for an accelerated and cost-effective way to sell their property. Auctions don't mean a bargain but instead can be a quick and optimal way to sell your land. Shop around and find the best auctioneering company in your area to get started!

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