Selling at Auction vs. Listing
When you work with Kaufman Realty & Auctions, you’ve got options. If you’re weighing the pros and cons of selling your home at auction versus listing your property, we can help. Read on to discover the differences and make the right choice for you.
Whether buying or selling, read on to find out why people choose an auction.
Buyers determine value. When selling a traditional listing, the asking price is only an estimation of value. If a property is listed too high, buyers will avoid it. If a property is listed too low, it will sell quickly but leave money on the table. Auctions gather all potential buyers of the property (in-person or digitally), allow them to bid for ownership and thereby determine a property’s true market value.
Whether the auction is in person or online, the bidding is visible, ensuring integrity and transparency.
Auctions are intense. Be prepared to know how to bid and be sure to plan your maximum bid ahead of time so you don’t get swept up in the excitement.
Plan to pay a non-refundable deposit for the property in case you win the auction. The amount required for the down payment is available on the auction listing’s webpage.
If you win the auction, you’re legally obligated to buy the building as-is. If you’re serious about purchasing the property, be sure to arrange for inspections ahead of time.
Properties often command a higher price at auction when the housing demand is high and there are few homes for sale on the market. This is especially true for unique properties.
While the sale of a listing can take days or weeks, a house can be sold at auction in a matter of minutes. Likewise, the closing date soon follows.
Advertising your property is essential, especially for auctions, where it’s important to have the right people present. At Kaufman Realty & Auctions, we promote your property to attract a variety of interested buyers.
Properties sold at auction are sold as-is with no refund. Sellers can have peace of mind, knowing that their sale is final.
Explore why buyers and sellers choose to list their property.
While the price is negotiable, in a tight housing market, buyers have less control over the price, especially if there are other families who are interested.
When you choose to sell by listing, it’s common to negotiate the price or for home improvements that you wish for the seller to make.
A traditional listing purchase process is more relaxed. As a buyer, this allows you to do your due diligence and consider the decision.
Deposits may be refundable, depending on the terms and contingencies of the contract, as well as the follow-through of the negotiated home improvements.
Buyers have more time to schedule inspections before making an offer on the house.
Even though listing prices are negotiated, sellers often have more control over a listing price, since you can set the price and can accept or reject whatever offer you choose.
It’s common for a sale to be contingent on a specific home improvement requested by the buyer. A real estate agent can ensure that all contingencies are documented.
Listings can take anywhere from a few days to a few months to sell. Additionally, the closing process usually takes longer because it involves negotiated improvements to the home.
Homes sold at auction and by listing both have marketing costs associated, but sellers who choose to list their homes spread the cost over the entire listing period.
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