| Home auction by owner may be the alternative if your | | | | competitive bidding environment has been created, |
| property has been on the market for a while. If you | | | | buyers will bid up to what they are willing to pay. |
| have tried the conventional methods of real estate | | | | Auctions are attractive to buyers because they are |
| sales as a For Sale by Owner or with the assistance | | | | always looking for the "deal". However, competitive |
| of a real estate agent and still your home remains on | | | | bidding will drive the price up. Sellers look to the Auction |
| the market, consider an auction by owner, including | | | | method when they are highly motivated to sell, wish to |
| online bidding. | | | | sell quickly because of circumstances or wish to |
| FSBO Auctions | | | | liquidate to re-enter the market as buyers. Whenever |
| The For Sale by Owner "FSBO" usually has limited | | | | a quick sale is desired, auctions should be considered. |
| equity and limited ability to market his property the way | | | | Cost Considerations |
| a professional real estate agent or auction company | | | | Auction does not necessarily mean losing money. |
| would. Yet adequate exposure for the property is | | | | Consider what it cost to hold the property, (mortgage, |
| essential to get the highest price. There are many | | | | maintenance, taxes and insurance) for say six (6) |
| reasons to consider an auction company; however, | | | | months vs. auctioning your home for slightly less right |
| now there is an auction system for FSBOs. It is a 16 | | | | now. Consider the selling cost to sell it the conventional |
| page booklet, explaining in detail "How to Auction Your | | | | way, using a real estate brokerage (typically a 6% |
| FSBO in 14 days", written by an Auctioneer and Real | | | | commission, repair costs, your closing cost and, in a |
| Estate Broker. It comes with a CD for your computer | | | | buyer's market as we are in today, the seller would |
| with templates and forms on the level with top | | | | most likely pay the buyer's closing cost also). With |
| performing real estate agents and auction companies. | | | | auction, you may not pay any commission. More than |
| Online bidding and MLS are components of the intense | | | | likely, you, as the seller, will pay the expense of |
| marketing campaign. It is everything you need to | | | | marketing your property and your selling cost would |
| auction your home in 14 days in the most economical | | | | consist of only your closing costs. |
| ways possible. | | | | No Contingencies |
| Auction Sales are Growing | | | | Auctioned properties are generally sold, "as is," and |
| Auction is the new "buzz" word in the real estate | | | | without any contingencies, such as inspections which |
| industry as market conditions require more intense | | | | can result in repairs the seller would be expected to |
| marketing and specific timelines in order to sell | | | | pay for. "As is" does not mean you do not have to |
| properties quicker. The National Auctioneers | | | | disclose all things known about the property to the |
| Association (NAA) has documented a 40% increase in | | | | buyer. In fact, the buyer should get inspections and/or |
| residential real estate sales by auction. In December, | | | | appraisals before the auction in order to know what |
| 2007, the National Association of Realtors (NAR) | | | | he/she is buying, "as-is." Since there are no |
| predicted by the year 2010, 30% of all real estate sold | | | | contingencies, including the buyer's ability to get |
| will be by auction. | | | | financing, usually auctions close within 30 days with |
| Current Market Value | | | | cash or financing already in place. Auctions bring |
| A real estate auction is the purest way to determine | | | | "ready" buyers. |
| the current market value of your home. Once a | | | | |