Not every home auction is a distressed sale.
A small number of sellers are deciding to sell at auction rather than using the more traditional sales method, either because they want to move relatively quickly or because they believe the bidding process will produce the highest price.
Sellers often hire an auction company, which advertises the property for sale and typically hosts a series of open houses to show off the home. Then the home goes up for sale on auction day.
Like any other method of selling a home, it pays to do your homework. That means researching the auctioneer and the company, the auction process and even your own property so you know how the process will work and what you stand to lose or gain.
13 questions you must ask before auctioning your property
- What is the auctioneer’s background, training and experience?
- Do I know, going in, what my property is actually worth?
- What is the auction going to cost me?
- Did the auctioneer answer all my questions?
- Do I understand the auctioneer’s marketing plan and sales strategy?
- Under what circumstances can I change my mind?
- Am I protected if the sale doesn’t go as I want?
- Am I comfortable with my decision on a reserve vs. no reserve auction?
- Do I understand the entire contract?
- Have I honestly disclosed all the property’s flaws?
- What happens if I want to sell before the auction?
- How will the company be showcasing my property?
- Am I considering an auction to get more than the property’s really worth?