Many homeowners prefer to sell their home at auction instead of contacting a leading we buy houses company like Cash Buyer New Jersey or advertising something like “I want to sell my house”. Some of them hope to get a better value of their home due to a bidding war while some others consider it an effective method to sell their house fast. Regardless of the league you belong to, you need to be aware of the advantages and disadvantages of selling your house at auction to make an informed decision. We’ve created this guide to help you understand whether or not you should sell your house at auction.
Types of properties generally suitable for auctions
If your home is in a poor condition and needs some repairs, an auction could be an effective option to sell it fast because auction bidders usually don’t try to avoid fixer-uppers. Also, if the house is unmortgageable or a short lease is there, an auction might be a better option to sell it.
Advantages of selling your home at auction
When it comes to auctioning your house, several costs remain associated with it – from the entry fee and a certain percentage of the sale price as a commission fee to legal fees. The following advantages of auctioning a home should help you understand why some homeowners prefer this method despite the cost associated with it.
• Fast sale: A deadline is set by most auctioneers for entries prior to the auction date, which helps them get sufficient time to complete marketing activities such as circulating the auction catalog. On the auction day, if your house is successfully sold, the buyer is obligated to finish the sale process by a fixed date. Therefore the total time taken for the sale of your house becomes much shorter than traditional methods of selling.
• Opportunity to get a better price: Auction is all about competitive bidding and hence if your home has something truly interesting, bids from multiple buyers can easily drive the price up. This is something you cannot find in any other method of selling.
• Different types of buyers: Auctions are typically attended by different types of buyers – from general buyers who’re looking to buy a home to experienced investors who can handle any problems your home might have. When you approach a traditional real estate agent, the chances of putting your home in front of such a mix of buyers are pretty low.
Disadvantages of auctioning your home
Despite the above benefits, there’re certain downsides to auctioning your home as well. First of all, if you’re presently residing in the home, you’ll have to make an alternate living arrangement quickly and vacate the property so that the buyer can start working on it or move in. Second, considering the auction house is receiving considerable fees from you, you’d want the home to be properly marketed. However, the reality is some auction houses don’t market all the properties appropriately. And if this happens, it’s unlikely that you’ll have many potential buyers present at the auction. And if your home doesn’t sell at the auction, ultimately the auction house might suggest you re-enter it into another auction.
As you can see, property auctions have a fair share of major disadvantages. Therefore, if you’re looking to sell the home quickly without paying the fees associated with an auction, you should contact a leading we buy houses company such as Cash Buyer New Jersey. It’ll not only help you get the best deal in the market but offer all kinds of professional support as well, making the selling process a smooth one.