Consider Selling Your Property by Auction

Quick - name a tool that is rapidly growing in popularity, a tool that can give a home seller guaranteed results and a quick sale of his or her home. This tool is an auction.

Yes, you read it right -- auction. It is a concept you are already familiar with. Every day, thousands of items are sold at auctions all over the country. The increasing popularity of on-line auction sites like ebay.com prove that auctioning is a viable selling method.

Of course, homes are also sold by auction, but there are still some misconceptions about this marketing method.

Today, many REALTORS® are using the auction concept to sell houses. But there is one problem that many of the auctioneers and real estate firms employing the use of auctions are having, and that is convincing clients that auctions are a legitimate sales method.

Their problems convincing clients are understandable, given the history of real estate auctions. Foreclosed properties were sold at auction during the Great Depression. Today, auctions are still used to dispose of foreclosed properties. With this in mind, it is easy to see how many people began associating real estate auctions with distressed properties.

But the times, they are a changing. The use of auctions as a viable marketing tool in the real estate industry is growing because not only can they provide fast turnover, but they also save holding costs on the property and, in many cases, result in the best net profit for the seller. And with an auction, homeowners can be sure their house will sell by a specific date. Other benefits to the seller include buyers come prepared to buy; competition is created among the buyers; it eliminates numerous and unscheduled showings; and it takes the seller out of the hassles of the negotiation process.

An auction is popular with buyers, too -- buyers like the quick sales process as well as the notion that they, not the sellers, are setting the property price. Plus, because sale terms are set prior to the auction, all buyers bid on the same contract; there are no counter-offer hassles. Other benefits to buyers include the buyer knows the seller is committed to sell; long negotiation periods are eliminated; the time to purchase property is reduced; purchasing and closing dates are known and buyers know they are competing fairly and on the same terms as all other buyers.

There are several keys to a successful auction, including well-informed buyers, strong publicity, an adequate viewing period and a full explanation of the sale terms. The auction fee is charged to the seller and varies widely depending on the type and amount of property sold.

If auctioned correctly, almost any property from a single-family home to an entire condominium complex can be successfully sold. For many first-time homebuyers, auctions can provide an ideal way to purchase an affordable starter home.

Do you need a quick sale or feel that an auction is perfect for the sale of your property? Then give one of the many licensed auctioneers of the Daytona Beach Area Association of REALTORS® the opportunity to put your home on the block. You'll know you made the right decision when you hear, "SOLD!"