We understand that letting go of a property, whether intentionally or otherwise, is an emotional process. On the one hand, your home may be associated with rich memories and important milestones in life. On the other hand, you need to choose the best option to make the most out of your property’s value. Here we list down tips on how to sell a house at an auction.
Beginner’s Guide to Selling A House at an Auction
About Home Auctions
House auctions are a favored way to sell or acquire a property that involves bidding. Selling houses in auctions has been increasingly popular among sellers and buyers alike due to its numerous advantages. One of these is the definitive timeline that allows homeowners to sell their house in less than a month. At home auctions, the sale happens within the given timeline, thus avoiding the back and forth negotiations. In addition, home auctions allow sellers to set their terms.
How to Sell A House at an Auction
Find an Auctioneer Who Specializes in Home Auctions
The first and probably one of the most crucial steps in conducting an auction is to find an auctioneer to help you from the beginning. The auctioneer is in control of the negotiation process when potential buyers compete to buy a house. It is their responsibility to make sure that the process is organized and in compliance with legal requirements.
On the day of the auction, auctioneers announce the terms and conditions of your auction.
A good auctioneer can sense the room and create an atmosphere of fun and entertainment to take the pressure off a very intense process. Therefore, a professional and knowledgeable real estate auctioneer specializing in house sales can play an important role in making the whole process go smoothly.
Real estate auctioneers play a significant role in the entire sale process. In general, auctioneers get 10-15% commission on the gross sales. Discuss this with your auctioneer from the beginning to avoid misunderstandings.
Determine the Type of Auction
Choosing the type of auction- absolute auction or reserve auction- allows you to decide how or to whom your house will be sold.
- In absolute auctions, the sale automatically goes to the highest bidder. This prompts potential home buyers to generate more bids through a bidding war and even get a higher purchase cost. The downside, however, is that this type of auction might discourage potential buyers resulting in having to sell your home for much less than your expected value.
- On the other hand, reserve auctions allow you to decide if you want to accept the winning bid or not. Before the bidding, you set an acceptable minimum price you can sell your house for. The highest bidder does not automatically seal the deal, and you are not required to sell if the bid does not meet or exceed that amount. This type of auction risks a no-sale charge at times, especially when the buyers do not meet the reserve requirements.
Before the auction starts, it is necessary to show transparency by informing the potential bidders of the timeline, auction rules, and deposit fees. The buyer usually needs to pay 10% of the property’s value on the day and has 28 days to complete and to pay the remainder of the purchase price.
Plan Your Advertisement
Prepare a catchy and professional-looking advertisement. With the advent of social media, it is much easier and faster to reach out to investors and home buyers. Make sure your ad copies contain all the details needed, such as the auction schedule, property details, and contact information. You can also include a comprehensive virtual tour for the benefit of the buyers.
Properties sold at auctions do not require contingencies, but making the inspection results available can increase the pool of buyers and establish trust. Also, consider including a home warranty to assuage buyer fears.
Keeping these auction fundamentals in mind can go a long way in conducting a successful auction. Selecting a company that can handle your auction needs can be challenging. We at Wiggins Auctioneers work on real estate auctions through innovative promotional methods for a productive closing.
Looking to sell your property? Wiggins Auctioneers has conducted 5,800 successful auctions and offers traditional listings for your property. Our experienced and dedicated staff at Wiggins Auctioneers provides the service you need for a stress-free transaction. Contact or visit us in our offices located in Enid, Oklahoma City, and Fairview, OK.