How to Sell Real Estate Property at an Auction
Selling real estate by auction may not seem like a wise thing to do, but more people choose to sell by real estate auction each year. In fact, as of 2007, over $17 billion of real estate was sold through auction.
- Contact a real estate auction house. You can find one by looking in the Yellow Pages or on a search engine. Find an auction house that will work with you as you start the selling process. Ask the auction house what their percentage of the sale will be. You will find that the commission of an auction house is usually significantly less than that of a realtor.
- Begin to ready your house for the selling process. This means that you will need to invest both money and time inside and outside of your home. Boost your curb appeal by laying down sod and planting bushes and flowers. Complete any tasks on the inside of your home that you have been putting off for some time. Because houses are sold in as-is condition at auction, leaving projects unfinished will significantly reduce the final sale price.
- Set a reserve price for your auction. This is the price that the house must reach to be sold at the auction. If the final bid falls below this number, then nobody will win the auction and it will have to be rescheduled for a different time. Setting a reserve price will help protect the seller.
- Advertise the auction. Most of this work should be done by the auction house. An auction can only be a success if there is a large amount of people there, ready to bid.
- Attend the auction. Although the auctioneer will do all of the work, you will need to be available to sign papers when the auction is completed.