When it comes to selling your home, you have to choose carefully how you want to do it. You are going to handle a lot of the work, after all. So you have to pick what selling strategy works best for you. One of the usual strategies for a property sale is an auction. If you are thinking of setting up an auction for your property, then here are the basics that you need to know.
How a Sale by Auction Works
An auction works by letting your potential buyers compete against each other by placing bids on your property. You can conduct the auction yourself, or you can hire an experienced auctioneer. You will have to advertise your home and set a specific duration of time for accepting offers. When the time frame ends, your house will be sold to the highest bidder.
Pros of Selling Your House by Auction
- In a home auction, you don’t advertise what your asking price is. That means your potential buyers are not fully aware of your expectations. This can result to bids that are higher than what you wanted the house for.
- You get to determine the terms and conditions for your bidders.
- Properties with unique features often do well at auctions. So if your home has special features, you will draw more competition between bidders.
- If more than one person is determined to buy your house, the competitive nature of an auction will cause them to bid higher – maybe even higher than they originally wanted to spend.
Cons of Selling Your House by Auction
- As mentioned earlier, you don’t advertise what your asking price is in an auction. This can result in bids that are higher than you expected, but it can also result in much lower bids than you wanted the house for.
- Marketing and advertising for auctions can be intense. You have to bring your A-game when you make a sales pitch or take property photos. You might end up spending more money and time on it than you intended to.
- There are some people who do not like the competition of an auction. So chances are, you might have potential buyers who won’t bid at all.
- If you are in a hurry to sell your home, an auction does give you good chances of selling by a specific date, but there is no guarantee that you will receive a bid that you like.
After reading these pros and cons, you can now decide if an auction is the right selling strategy for your home. If, however, you think that an auction is too troublesome, then why don’t you try selling to a real estate investor like Blue Hen Homebuyers? You don’t have to prepare for marketing materials and biddings. Blue Hen Homebuyers buys all kinds of homes, no matter the condition. All you have to do is complete a Property Information form on our website. Leaving your home is hard enough – selling it shouldn’t be. So contact Blue Hen Homebuyers today!