| Selling your home should be an exciting time, but in | | | | mortgage. |
| some cases, might not be the experience you had | | | | 5. Minimum Bid Auctions. |
| hoped for. From the moment the property hits the | | | | This type of property auction has a reserve price, or |
| open market, the clock starts ticking as to how many | | | | minimum bid that will be accepted by the seller. And |
| days before it is sold. However, auction sales are a | | | | although the price is fixed to where it cannot fall below |
| growing trend to move the properties swiftly, albeit | | | | the minimum, a good auction house may be able to |
| there are pros and cons attached. Selling a home on | | | | raise the selling price for you. This type of auction |
| the auction block has been a successful strategy for | | | | works well for properties with little equity and gives the |
| homeowners who need to have a quick sale and are | | | | seller greater control of the outcome. |
| somewhat flexible with the final sale price. And | | | | Tips For Buyers: |
| although selling at auction can move a property in | | | | 6. Get Your Lending Docs In Order. |
| three to four weeks, not every home owner will be | | | | Buying a home at an auction is a great way to say |
| content with selling at a discount. | | | | thousands, and you want to be ready to go as soon |
| If the auction option sounds like a viable resource for | | | | as possible. So be sure to get all your lending |
| you, there are a few simple steps to better prepare | | | | documentation in order before you attend the auction. |
| yourself for this novel venture, and help to ensure that | | | | 7. Previews. |
| you have made the right decision. | | | | There is a little leg work involved when buying a home |
| Tips For Sellers: | | | | at auction. Some auction houses hold a preview of the |
| 1. Profit Margins. | | | | property, which every savvy buyer will take |
| The first question to answer is how much money is | | | | advantage of. However, in some cases, it is not |
| the minimum you may accept for the property to pay | | | | possible to enter the property for a look around. In |
| off the mortgage. In some cases, the auction price | | | | such cases, be sure you do a drive-by and perform |
| may fall short, leaving the seller with a deficit to be paid | | | | the property observations from the street. |
| to the lender. However, in the case of older homes or | | | | 8. Priority List. |
| those with plenty of equity, the auction selling price is | | | | Yes, auctions are fun, but you must be sure that you |
| much more flexible. | | | | do not get caught up in the excitement and lose your |
| 2. Calculate The Fees. | | | | train of thought. The best way to stay focused is to |
| An auction house will generally take a percentage of | | | | make a list of all the properties that you are interested |
| the total sale price of the property. Fees may range | | | | in and rank them in order of their importance. List the |
| from six percent and upwards, so be sure to get the | | | | features that attract you and set yourself a firm |
| fee in writing and crunch the numbers in a variety of | | | | budget for each home. Property description lists make |
| possible outcomes. | | | | the auction process neat and clean with no mistakes. |
| 3. Choosing The Auction House. | | | | 9. You're The Winner. |
| Most major metropolis areas have quality auction | | | | When the auction process becomes fast and furious, |
| blocks that specialize in property. You will want to do | | | | its easy to get carried away and make a bid that you |
| your research and get the best company that spends | | | | did not intend to commit to. In most cases, its a bid |
| money on its advertising and is well known in the | | | | over budget, so be mindful that your bid is legally |
| community for fast sales. | | | | binding. If you are declared the winner, it cannot be |
| 4. Absolute Auctions. | | | | retracted, even if you have made a mistake. So be |
| There are two roads to travel when you wish to sell | | | | sure to stay focused and let nothing sway you from |
| your property on the auction block. The absolute | | | | your game plan. |
| auction is a process where the property will be sold to | | | | 10. Mortgage Paperwork. |
| the highest bidder. This type of auction is a sure fire | | | | Once you have won the bid for the property, be sure |
| way to move the property with speed. However, the | | | | to contact your lender immediately and get the lending |
| downside is that the seller must take what was | | | | papers in order. You are legally responsible for the |
| offered on the home, a maneuver that can be risky to | | | | winning bid and must move quickly to satisfy the |
| sellers who need a specified amount to satisfy the | | | | financial matters. |