Has anyone ever auctioned their home? (auctions, foreclosed, mortgage, mortgage)
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If you own the house outright, or have a lot of equity in it, I wondered if this would be a quicker process than the regular Realtor listing route. I don't mind paying a fee to the auctioneer company - need a quick sale.
Anyone ever done this and what was your experience?
Have never done it but i imagine that the auction company may take a good bite out of the receipts. Check that out first. Also, maybe check out past auctions and contact the sellers to judge their experiences with the company you are looking at.
I've never sold a house through auction, but I have attended many. Auctions are a crapshoot--you never know who will show up to bid. Sometimes they can work in favor of the Seller if a couple of bidders get into a bidding war, but I think that most people attending an auction are looking to get a deal. If there's little bidding activity, the final price offered could be a disappointment. Of course, you can stipulate a minimum bid price that you'll accept, as long as that's agreeable to the auctioneer (remember, it's your house, not the auctioneers).
I'm not sure how urgently you need to sell, but I would suggest trying to do a short-term listing agreement to see if you can sell it the traditional way.
If you own the house outright, or have a lot of equity in it, I wondered if this would be a quicker process than the regular Realtor listing route. I don't mind paying a fee to the auctioneer company - need a quick sale.
Anyone ever done this and what was your experience?
Depends. Auctioneers fees are pretty high. 10% is not uncommon. If you have a mortgage of $200,000, your reserve price would have to be at least $200,000. Even if someone wins at acution, it might take 30 days for him to come up with the money, similar to a house sale, and its possible he cant come up with the money, or backs out of the deal.
If the house is only worth $205,000 why not just listing it for $205,000 for a quick sale. Instead of an auction get a list of comps, and list it for much less. People looking for a house use realtors. People looking for a deal use auctions. You will probably make more money with a realtor.
While the "outcry" part of an auction may seem "fast" the fact is that every home auction I have attended has been advertised for weeks if not months. It was a bit of a fad for a while and some folks did OK when the market was hot but even with recent price spikes you would be INSANE to try to sell a home in decent condition at auction now because there are so many foreclosed properties in TERRIBLE shape that are still a terrible drag on the market...
The key to a successful auction is to have a large number of savvy bidders -- that works pretty well with collectibles and even things like used cars as there is an ability to resale these things through other channels that will enhance the price. With a house that is in decent condition the best person to buy it, from a sellers perspective, is someone that has "fallen in love" with the home and want to raise their family in it -- those are NOT the kind of people that spend time at home auctions!
Great information, and I appreciate all the feedback!
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