An auction avoids many of these hassles and chances to lose money. There is no “ceiling” placed on the property by pricing it before the auction. Instead of the price being negotiated down from the list price during each step of the selling process, the offers steadily increase at auction. Where the traditional sales process only lets you consider one offer at a time, an auction allows multiple buyers to compete against each other. Every person who is interested in purchasing the home has the opportunity to try and buy it.

If you wish, you may also set a minimum or “floor” price on the home. If the competitive bidding process does not result in a satisfactory price, you do not have to sell.

A typical home sale can take many months. During this time, a seller has to pay the existing mortgage, utility bills, taxes, insurance, and keep the house maintained. These costs can easily add up to several thousand dollars. If the property was inherited, or if the seller has already purchased a new home, these costs can become a huge burden. In the case of an inherited home, carrying costs can easily eat through the limited funds left in an estate, leaving heirs to pay for things out of their own pockets or risk foreclosure before the property is sold.

Even if a person or family is still living in their home while trying to sell it, the cost of keeping the house in show-ready condition can add up quickly. A prolonged selling period can mean months of professional cleaning services, storage facility rental fees, and other costs.

An auction can limit these costs by being able to sell and close the transaction in a very timely manner. You, the seller, get to determine the date and time of the auction. You also set the exact terms of the sale. Most auctions offer the property on an AS-IS basis, ensuring that sales go through even if additional maintenance issues are discovered after the sale. Bidders must also put down a substantial deposit and be ready to close in the required time frame.

And what does the National Association of Realtors® think about auctions? A quote from the Realtor.org website defines a real estate auction as “an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property—most certainly including those that are nondistressed—through open cry, competitive bidding.”

Sohn and Associates specializes in selling residential, commercial, and agricultural real estate. Our track record of successful sales speaks for itself. Please call us today to discuss at no obligation whether an auction is right for the sale of your home!