Benefits of selling your house using auction
Auctions are becoming an increasingly popular method of selling houses. This is particularly true for homes priced at the higher end of the scale. But what is it that makes auctions so attractive to sellers?
1. Completion Speed
If you need to sell house fast, an auction is the fastest way of doing so. Depending on the auction house and date of auction, the entire process from start to finish can take as little as three weeks and no longer than eight weeks. Considering that conventional sales can take up to eleven months, this is a huge benefit.
2. Success Rate
The key is getting the auction house to accept your house for their auction. Understandably, they are quite particular on the type of property to be included in their auction. However, if your house is selected, there is a high chance of a sale since between 75% and 90% of all homes listed in an auction are typically sold.
3. High selling price
One of the greatest myth about auctions is the low selling price. Bidders attending auctions are not there to scour for bargain basement properties. They are looking for competitively priced houses which can be flipped for a profit or held as a long term investment. This is why houses sold at auctions tend to generate a premium, especially if there is a bidding war (because emotions can influence even seasoned bidders).
4. Safety Net
Like all auctions, a listed item will have a reserve price. So you are firmly in control of the price of your home as the winning bid will never go lower than your reserve price.
5. Exposure to ready buyers
Houses listed at auctions will be marketed to everyone on the auction house’s mailing list. Since their mailing list consists of professional buyers, your property will be exposed to a highly targeted demographic, many of whom are ready buyers.
6. Fixed Cost
Auction houses are upfront about their cost, so you don’t have to worry about hidden charges that will suddenly be sprung upon you after your house is sold. The fees of most auction houses are typically set at 2.5% of the selling price. Additional charges, such as legal and advertising fee may apply, but you will be informed of this early. This will allow you to accurately mark up the selling price to account for the locked-in expenditure.
Since the auction house handles the entire sales process, you don’t have to worry about being scammed. Auction houses typically vet their bidders in advance, and they are fully liable for any fraud committed.
So, are you ready to give auctions a try?