Some of the advantages of selling your home at auction are simply avoiding the disadvantages of regular sales. For example, showing your home to multiple potential buyers over a period of weeks to months. Sometimes potential buyers will show up at your home unannounced. They may see the sign in your yard and come up and knock on your door at a time when you’re not ready to show the house.
At that point you don’t know who they are, or if they are financially qualified to purchase your property. If you’re selling your home by owner, but don’t like trying to establish whether a buyer has enough credit and down payment, as well as possibly helping them get prequalified with a lender, an auction is a better option.
Many people attend the auction at the same time, exposing their property to a whole group of eager and motivated buyers. Buyers must pre-qualify for a loan before bidding on a property, simplifying the hassle many realtors and homeowners face in a regular sale.
You also don’t have to haggle over price with a buyer at auction. Almost all buyers are looking for a great price and the best negotiator always gets the best offer. Some experienced investors are able to negotiate with a homeowner until they have overcome their resistance and get their home for much less than the original asking price. If you’re a great negotiator yourself, you’ll be fine, but many people don’t stand a chance against experienced real estate investors.
Your home will also sell on the date you set for auction. You don’t have to wait months for your first offer or price a home well below its value to entice potential buyers to view the property. Having a set auction date allows you the freedom to schedule your future plans without letting a lingering house stop you from moving forward.
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