How to Sell Real Estate Property at Auction
Auctions can be a great way to get rid of many items in one day. You may not get the money you wanted for certain items, but at the end of the auction, they will be gone. With an uncertain housing market, you may benefit from auctioning your home and property. Just like other auctions, you home can be auctioned off to the highest bidder in one day.
- Have your home appraised to know how it's worth. The value may have gone up or down depending on the location.
- Contact a reputable auction house or auctioneer who has a license to auction real estate and property. Not every auctioneer can. If you don’t know an auctioneer, check the auction house or auctioneer listings on MerchantCircle. This website will provide contact information, a link to the auctioneer’s webpage and customer reviews.
- Set an appointment with the auctioneer to view your house. They will look at the house and determine the best way to auction. An auctioneer is a professional and has sold many houses before, and knows the best way to sell for the most money. Remember, if you make money, he makes money.
- Agree to a profit percentage. In most cases, the auctioneer takes five to 30 percent of the auction price. Some auctioneers will have a set price for auctioning a home, others take percentage based on the profit made from the sale. Depending on state laws and local regulations, you and the auctioneer have several options for payment.
- Advertise your auction. The auctioneer will promote your sale by creating fliers, publishing it on the auction house website or posting it on the calendar at AuctionZip.com. Promote your auction by hanging fliers on community boards, posting information on Facebook and creating an ad for Craigslist.
- Arrive early on auction day, at least one hour before. Interested bidders will want to look through your home.
- Allow the auctioneer to do the job hired to do. If he needs more information, he will consult you. He will also check with you regarding the final bid of the home. It is up to you to accept or decline the final bid. This is why it is helpful to know the selling price and value of your home.
- Make the final decision to accept or reject the final bid. The auctioneer will work as a middleman between you and the potential buyer. If you want more money, tell the auctioneer. Even though it is an auction, you can counteroffer. If you set a minimum reserve price before the auction, you are not required to sell the home if it does not meet it. Accepting an offer will save additional time and effort putting the house on the market or trying another auction.