|Should we try an auction?
As an auctioneer and real estate agent this is a question I hear on a regular basis at listing appointments. The answer actually depends on a number of factors. Some of the points I ask the homeowner to consider are:
How quickly do you need to be out of your home? This is one of the most important considerations. If you need out quickly, auction may be your best option. The real estate market varies depending on location, style of home and condition of your home. Recently I viewed a home that had several major cracks in the brick and I recommended an auction because of the fact the home will sell as is and no repairs have to be made. Placing this home on the market may take several months to sell because buyers will not overlook those cracks.
How much equity do you have in your home? If a homeowner doesn’t have equity, an auction probably won’t work. Too many times I’ve seen homeowners who have lived in a home for 5-10 years but still don’t have much equity because of market decline.
How many homes are for sale in the immediate area? This is important because if someone is looking at the neighborhood, they have many choices if there are several homes on the market. If your home is the only home in the area being offered for sale, your chances for top dollar increase as do your chances for a successful auction.
What are your expectations on selling price? In certain areas, prices have not rebounded as well as other areas. If you are wanting to realize maximum potential selling price, you may want to list your home because it might take several months for a potential buyer to come along willing to pay your expected price.
Are you willing to complete extensive repairs or meet strict loan requirements if required by a particular lender or loan type? Lenders have tightened loan requirements and your home may have issues that will pose a threat to closing. Repairs or modifications could cost thousands of dollars to complete depending on your particular situation. Once again, with the auction method, the home sells as is and any potential buyers are notified the sale of the home is NOT CONTINGENT on financing, appraisal or inspections.
These are just a few of the points to ponder when thinking about an auction. Everyone’s situation is going to be different and that is when you should consider calling a licensed and professional auctioneer.
Greg Goff, AUCTIONEER
EXIT Realty Bob Lamb Auction Division
Firm # 5515
Ph: 615-896-5656 x 153
|Posted By - Gregory Goff - 1 day ago