Home auctioning is a growing industry, fast competing with the traditional home listing by hometown-based real estate agents. In an age when we need everything done yesterday home selling and buying remains one of the most time-consuming and laborious tasks in the retail industry.
More and more sellers are exploring home auctioning as a definitive, clean alternative to traditional listing. First and foremost, an auctioned property brings in the desired result in one event, held on one day. Think of it as an open house guaranteeing a buyer. The traditional open house rarely results in a buyer and if it does, the open house itself is only a precursor to the process that must follow to actually close the home. An auction brings in buyers who have already explored the specific attributes of your home and have prequalified. They come to the auction armed with the required security payment and financial documents. At the end of the event, your home is sold.
With the advent of on-line auctioning you have access to potential buyers around the world. The likelihood of meeting your reserved price increases exponentially with the number of bidders present. That number increases with global access by potential buyers. Access is particularly beneficial if your property value is high. Through online auctioning you are now reaching audiences targeted worldwide by your auction real estate agency.
The act of auctioning itself creates a competitive spirit among participants and more often increases the final bid. It is within our human nature to achieve a win regardless of the competition. When you put participants together there is a validation of the potential buyer’s interest by those who are present and therefore also interested. If other potential buyers are bidding within the same range it solidifies the value of the home to all of those participating and participants are willing to continue to bid.
Another benefit to auctioning is the finality of the sale. There are no contingencies, no negotiating. Properties are sold “as is”. The highest bidder wins. The seller does not have to negotiate the price based on some physical condition of the structure or value formula contrived by a buyer’s agent.
Finally, the seller is continually inconvenienced to accommodate viewings by potential buyers in a traditional listing arrangement. With home auctioning there are no scheduled personal viewings or open houses. Marketing the property and auction is undertaken by the auction agency. Most commonly, bidders are welcomed to view the property over a short period of time immediately preceding the auction or on a date within a few days to a week before the actual event. The home owner is not subject to the continual interruption and preparations for home showings. One effort for one event and the result is a home sold!