It is common thought that when we hear of a property going up for auction, we immediately think of foreclosure due to default on payments. However, that is certainly not the only reason for a property to be auctioned off. Often times, gems of homes are sold at fair market value at an auction.
Licensed auction houses or agents who follow all of the necessary protocols perform non-foreclosure property auctions. There are many benefits of purchasing a property through auction as well as many benefits being provided to the seller.
1. Auctions can be reserved for homes of unusual or eccentric appearances, which make it a very appealing option for those who like the less than traditional type of home.
2. Auctions are also a great way for buyers and sellers to gauge the actual value of a home, thus it being auctioned for its fair market value. This gives both parties maneuverability when choosing how much they want to spend/sell for.
3. The real estate company that is in control of the auction will require buyers to register. This gives the company the opportunity to pre-approve buyers to be sure they have good credit. This also gives sellers the peace of mind knowing that there won’t be a financial crisis.
4. Conventional home sales can take months. An auction is much quicker because there’s only one chance for buyers to make a bid. This is appealing to those who need to sell quickly.
5. If a homeowner fears their home will get lost in the shuffle of thousands of homes for sale, an auction is a unique option to put yours above the rest.
6. Before you attend an auction, you should contact the agent or company who is holding the sale. Ask them about restrictions, money needed up-front and how long the seller has to make a final decision.
We encourage those looking to buy or sell a home in an auction to contact us to learn more of why this might be the right choice for you.