| Selling a home by auction can often be a viable | | | | the Certified Auctioneers Institute to have had a |
| alternative to selling in the "conventional" way, | | | | minimum of two years of professional auction |
| particularly during a market slowdown, when there is a | | | | experience and follows a program of continuing |
| glut of unsold inventory, buyers are reluctant to commit, | | | | education. |
| and are few and far between. A house can sit on the | | | | The prospective auctioneer should have had |
| market for months, and maybe not sell at all. In these | | | | experience in selling similar type homes, have a set |
| cases real estate auctions can offer a number of | | | | marketing plan, and specify the type of advertising |
| distinct advantages: | | | | materials to be used, such as brochures, etc. Be |
| - Bidders must pre qualify for a loan and register to bid | | | | certain to have your real estate attorney thoroughly |
| with a certified check | | | | examine your agreement with the auctioneer before |
| - Property auctions have a high visibility, and attract | | | | signing. |
| immediate attention. | | | | There are basically two ways to sell a home by |
| - The Auction deadline for final bidding creates a | | | | auction. Setting a reserve or floor price means that the |
| sense of urgency and heightens competition among | | | | bidding must start at or above a specified figure, and |
| buyers, and as a result the property can often be sold | | | | the house will not change ownership unless the highest |
| for a higher than expected price. | | | | bid is at or above the minimum stated price. Set the |
| - The seller knows the house will be sold within a | | | | starting bid price attractively, and at a market value |
| specified time frame. | | | | competitive with the selling price of similar homes for |
| - The seller sets the terms and conditions of the sale, | | | | sale in the area, particularly if equity in the home is not |
| avoiding haggling over price, counter offers, etc. An | | | | sufficient to auction the home at an even lower than |
| auction can attract potential buyers who may assume | | | | market price, which would be ideal, or circumstances |
| the property is being auctioned due to the owner | | | | warrant a sale at any cost. |
| facing financial difficulties or foreclosure. Although this is | | | | An absolute auction is one in which bidding can begin |
| sometimes the case, other situations such as a | | | | at any price, and at the end of the bidding deadline |
| company transfer, an estate sale, or a home owner | | | | ownership of the property is awarded to the highest |
| wanting to avoid the uncertainties of the current | | | | bidder, regardless of the price bid. This is certainly a |
| market and sell quickly, may be the reason the | | | | riskier method of auctioning a home, but absolute |
| property is being auctioned. | | | | auctions often attract more bidders, and can |
| Once the decision has been made to auction a | | | | sometimes be more profitable than expected due to |
| property, an auction house experienced in property | | | | the increased competition. |
| sales should be located. The quickest way to locate | | | | Lastly, whether or not to sell a home by auction should |
| one of these companies is to check the website of | | | | be based on a thorough evaluation of one's |
| The National Auctioneers Association. | | | | circumstances, and an equally thorough examination of |
| Choose an auctioneer that has been designated by | | | | alternatives. |