Why Sell Your Property at Auction?
When it comes to real estate, conventional wisdom is that auction sales are just for desperate sellers or bank-owned properties. But in the past few years, auction platforms have seen a steady increase in the number of properties sold, and far more buyer engagement from owner-occupant consumers. Here are four reasons why selling via auction could be the right choice for you.
1. There’s no ceiling in a competitive market
There’s nothing quite like the buyer’s rush inspired by a bidding war, and in a strong seller’s market, the sky’s the limit. “Auctions create competition” says Max Spann Jr. President and CEO of Max Spann Real Estate Auction Co. “If you’re capturing the market at its height, an auction plays to people’s emotions. And people will often be willing to spend a lot more in an auction environment than they would in a traditional sale.” auction method if they’ve had trouble purchasing through traditional real estate listings. Competitive markets increase the buyer bidding pool and increase buyers’ chances of paying more than they initially anticipated.
2. Save time and money in a slow market
Auctions are not only for competitive markets. They can also be helpful in a downturn to sell a property quickly at true market value. In a slow market, it can be difficult to keep up with the trajectory of pricing. If the market is losing 5% value every month, and you’re only decreasing by 2% a month, you’re never going to catch up. That’s how you end up with houses that linger on the market for five or 10 years — they just never caught up with pricing. By auctioning a property, you can avoid that lag and ensure your property sells at its true value.
3. An auction attracts serious buyers
Auctions see their fair share of investors with plenty of capital, but lately depending on the asset, auctions capture bids from the intended end user.
They are usually trying to do one of two things: Get into a competitive market — which makes them a very serious buyer — or they’re trying to get a with upside potential to further ensure the auction draws only serious buyers, Max Spann Re & Auction Co requires bidders to pre-register + as well as post funds before they can bid. The highest bidder is required to provide 10% deposit of the purchase price at the time of sale. This nonrefundable deposit helps ensure the sale will go to settlement and weeds out less-serious buyers.
4. You know the exact date your property will sell
Holding on to a property can be costly. Selling your property via accelerated marketing or auction not only expedites the process (45 to 90 days from listing to closing), but the auction method also allows an owner to know the exact date of sale, so one can budget accordingly. Sellers can avoid high carrying costs like mortgage payments, taxes, and home maintenance by budgeting for an exact sell-by date rather than listing a property the conventional way and hoping for the best.
If you’re interested in selling your property at auction, contact us today to for a consultation at 908-735-9191 or at auctions@maxspann.com.
