Benefits and Risks of Real Estate Auctions

by Qarah Ict Qarah ICT

Many people have discovered that the traditional realtor firm isn't the only way to sell Land. Real estate auctions are increasingly popular among people who buy and sell properties. As an alternative to the traditional marketplace, the benefits of selling via auction are undeniable during the bidder qualification period. If you haven't considered the auction route, you should keep the following benefits and risks associated with the auction process in mind. You may find that it suits your property-selling goals.

Benefits of Real Estate Auctions

One of the significant reasons sellers seek the auction format is because it often allows them to dictate terms and conditions and a deadline. Selling for cash also allows sellers to move forward with their plans immediately after the sale. Since roughly 90% of auction sales close, there is every possibility that the deal transaction will close without a hitch--particularly with pre-approved buyers in attendance at the auction.

When it comes to complicated properties, many auction houses recommend using brokers. This provides sellers with the best of both worlds--the auction format coupled with the selling expertise of the realtors. Often sellers obtain great prices for properties they sell at auction--more than expected. This is usually because buyers come prepared with a cap and may bid until they reach it.

Risks of Real Estate Auctions

While selling properties at auction often results in a great deal, it doesn't always. There isn't any guarantee that other interested parties will bid up the price. Also, sometimes bidders do not have the opportunity to have home inspections. Buying a home without a check is risky for the buyer, so the more inspection information you can present, the better. It's essential to weigh these considerations carefully. What is the minimum acceptable bid, or can the property be given to the highest bidder? These questions must be mulled over in advance.

Sellers who sell at auction have to rely on marketing. While an excellent auction firm often has a regular clientele, some may not do all they can to market your auction. You may want to promote your upcoming sale online or at other venues to attract potential buyers.

Work with a Reputable Auction Firm

When you attend auctions hosted by reliable and respected auction houses, you'll feel more comfortable about the process and may even find that some risks are mitigated. Many sellers find the auction route liberating. They can plan accordingly because they know when they will sell their house. Working with a trusted auction firm with experience in real estate is essential for sellers who may be new to the action process.

These are a few pros and cons of selling a property at auction. Before you decide, talk to an auction house like Columbus Elite Auctioneers that can answer your specific questions and address all your needs.

Columbus Elite Auctioneers offer sellers a unique and effective way to sell their properties. Our real estate auctions are listed on the local MLS and benefit from maximum exposure through our partnership with REMAX Premier Choice.