Auctioning a property isn’t the most conventional means of selling a home, so there is naturally a lot of misinformation online about the process. In this article, we’re going to explore five common home auction myths and offer truthful explanations that will help shed light on the reality of this underreported area of real estate. Afterwards, you’ll have a much better understanding on how a property auction works and whether or not its the right choice for you as a seller.
Myth 1: You Won’t Get the Price You Want or Need
Because property auctions revolve around bidding, many homeowners believe that they won’t receive a fair price for their house. In reality, homeowners have complete control over the auction and are able to set a reserve price – the minimum amount of money that they’ll accept for their property, Hudson & Potential buyers will use this reserve price as a starting bid, and homeowners are often surprised at how much more they can make thanks to the bidding competitions that often ensue.
Myth 2: Auctions Are Too Complicated
If you work with a licensed real estate agent, there’s no reason why your home auction has to be any more complicated than a traditional sale. You’ll still go through many of the same procedures, such as hosting an open house or having it inspected before a bidder closes the deal. Most property auction companies will assign an agent to work with you in order to bring in potential buyers and sell your house as quickly as possible.
Myth 3: Auctions Are Too Expensive
In most cases, a home auction does not have any fees larger than the ones involved in a traditional home sale. In fact, some companies like Hudson and Marshall don’t charge homeowners or real estate agents anything to place a home up for auction, and buyers are not charged any fees to place a bid.
Myth 4: Buyers Only Pay in Cash
While buyers do have the option to pay with cash in home auctions, the majority will finance their new homes through a loan. They usually only have to put down a deposit before being given 30 to 45 days to close the deal.
Myth 5: Real Estate Agents Don’t Benefit from Home Auctions
A sale is a sale, so real estate agents do profit from working with a client who is auctioning their home. They receive the same commission and perform all the regular duties of a traditional sale like advertising the property and showing the house to prospective buyers.
Closing the Deal
Buying a house through a property auction can be just as beneficial as selling one. Homeowners have a chance to pull in a greater sum than they would have made in a traditional sale, while buyers have greater leverage and options. Since most home auctions are overseen by a company and a real estate agent, they are safe, secure and just as viable as any other sale.