Are you considering selling your home or have a listing that still hasn't sold? If so, you may want to consider the advantages of real estate auctions.

Real estate auctions are growing in popularity. Last year revenue from housing auctions grew 12.5 percent to $16 billion, up from $14.22 billion in 2005, according to the National Auctioneers Association. From 2003 through 2006, real estate was the fastest growing segment of US auction industry.

While the term “real estate auctions” used to bring to mind images of a foreclosed home sold on the courthouse steps, many people choose to sell their properties through real estate auction firms in order to sell the property faster and often for more money.

Many of the bidders at real estate auctions are developers who buy properties and fix them up for sale; these developers often resell the property at auction as well. Auctions are also popular with owners whose property has been slow to sell, homeowners who are relocating for business reasons and need to sell quickly, and people who inherit property and wish to sell it quickly and divide the proceeds. 

One of the big advantages of selling your property at auction is that as a seller, you have the power in a real estate auction.

In a traditional real estate sale, you list your property with an agent or broker, wait for a potential buyer to make an offer, and often end up getting less than the asking price for your property. Meanwhile, you are subject to many unscheduled showings and the other hassles of having a house on the market.

With an auction, you or your agent contract with a real estate auction firm, and the auction firm organizes and advertises the auction. You know exactly when your home will sell. You don’t have to wait for an offer, then wait for a counteroffer or acceptance. You know when the home will sell and when the closing will take place, so you can make your plans.

The winning bidder in a real estate auction pays a deposit at the time of sale and must have financing lined up in advance. This means you won’t have to wait for the lender to respond and possibly have to turn down another offer because the buyer didn’t qualify for financing.

Finally, the financial end of selling your home at auction can be very nice. Real estate auctions bring out interested, motivated buyers who are looking for great properties, and who are willing to spend money on a property they love, whether it will be their future home or something they’re going to “flip” to another buyer later. Many sellers find that their homes sell for more than the reserve or minimum price because two bidders wanted the property. Many attendees at real estate auctions know exactly what they want, and are willing to pay more than they might pay in a traditional real estate sale, in order to get the property they like.

Clearly, selling your home in a real estate auction has many advantages, not the least of which are the telescoped timeframe and the potential for more income. This is an option to consider in selling your home.

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