Real Estate Auctions

As the benefits of selling real estate through public auction become more apparent, this type of transaction is growing in popularity. For owners who wish to simplify and speed the process of selling their home, auctions may be the way to go. However, they aren't for everyone, and it's important to understand the major characteristics of real estate auctions to decide if this is the best method for each seller.

Benefits of Selling Through Auction

Auctions generally take place a lot quicker than traditional real estate transactions, many times taking less than 90 days for marketing, sales, and closing. For sellers who wish to create competition and urgency amongst potential buyers, auctions can work particularly well. Depending on which auction type is agreed upon by an owner and his or her auction house, sellers may also have the freedom to choose a sale date and a minimum bid amount.

Many sellers prefer the amount of control they wield in this type of transaction, but auctions are not without involvement of other parties who have a vested interest in the sale of the house. Auction houses and real estate agents who specialize in auctions generally handle the marketing, including any necessary open houses as well as guidelines for public bidding. They must be paid accordingly, often similarly to the commission a broker or agent would be paid.

Perhaps the most well known types of real estate auctions are foreclosure auctions, which involve government and lender repossessed homes. When looking around for real estate auctions in a particular area, both the local newspaper and the Internet can provide property listings, dates, and times. Since time is of the essence when it comes to auctions, it's imperative to move quickly to see the home and possibly inspect it before the auction date.