Is Auctioning Your Home A Good Idea in a Slow Market?

Published: 19th January 2008
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There is a new trend sweeping the FSBO world, and this trend begins with an auctioneer. Many home owners are turning to auction houses in order to sell their homes in a hurry, but is auctioning your home really a good idea?



Unless you need to sell your home within a very short period of time, auctions are generally not recommended. However, many home owners are starting to find the auction house far more appealing after months of listing a home within a market that is just not moving. There are some definite benefits to selling your home at auction, but there are some drawbacks as well. In the end, make sure you understand both sides of the coin before you decide to put your house up for auction.



Usually, a home auction takes place on site. This means that all buyers interested in your home will be walking around your house before, and during, the auction. Think about this time as a sort of large open house. All the same tactics that apply to an open house apply during the time of auction. Make sure to keep pets out of the way; stage the property nicely; and keep things looking tidy and clean. Once all prospective buyers arrive, the auction will begin.



Keep in mind that there is no set price for a house sold at auction, which is why many buyers prefer this type of home sale. Therefore, you may walk away from the auction with more money than you anticipated, or you may come away with far less than you originally intended to have. Of course, you can set a reserve price for your home, but most home owners do not make a large profit when it comes to an auction.



Generally, selling your home at auction is not the way to go. If your home is not selling as fast as you would like, consider taking your home off the market, and re-listing when the market is a bit better. Ask yourself whether or not you can keep paying your home mortgage for another month or so, and then try to sell your home again. If you are desperate, and you need to sell your home right away, an auction may be your best bet.



Although auctions seem to be gaining in popularity, those that are seeking to sell their own homes usually do better when sticking to tried and true practices. It used to be that foreclosed homes were the homes up for sale at an auction, so keep this in mind. Auctions are a lot of work for any home owner, and most of the time they are simply not worth the hassle.



Raynor James writes about all kinds of real estate issues for FSBOAmerica.org where you can list homes for sale by owner for 30 days free.


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