Auction House Selling Tips

House sellers use auctions when they are interested in a quick sale.

Selling a house at auction guarantees you a quick sale as long as you don't set the reserve price too high. Auctions are frequently used to sell houses in cases where heirs have inherited property and don't have the time or inclination to engage in a long and drawn-out selling process. Foreclosed houses are also frequently sold at auction.

Set a Reasonable Minimum Bid

Never sell a house at auction without imposing a minimum bid. If few bidders should show up, you could lose many thousands of dollars. At the same time, don't set a minimum bid that is unreasonably high. If a house is put up for auction and fails to sell, it may acquire a stigma in the local market as undesirable, and be more difficult to sell in the future. Consult with real estate agents and home appraisers to determine what the fair market value of your property is, and set the minimum bid as far below that number as you are comfortable with.

Hire a Reputable Auctioneer

Find an auctioneer with a good local reputation to conduct your auction, and be sure to get everything in writing before the sale occurs. The auctioneer will charge you a percentage of the sale price of your home for her services, and sometimes a seller's fee and administrative fee as well. Be sure you understand all costs that you are expected to pay because they can add up to a substantial amount of money. If you are operating with a slim financial margin, these fees may change your selling plans.

Clean Up the Property

At an auction, just as in a more conventional real estate sale, a run-down and neglected-looking property will not bring in as much money. Without getting bogged down in major construction projects, do what you can to spruce up the property and make it look inviting. At the very least, cut the grass, prune the hedges, clean the windows, vacuum the interior and remove any junk or clutter that is on the property or inside the house. A fresh coat of paint will also help.

Advertise Widely

In a conventional real estate sale, if you get one buyer who will sign on the dotted line, your job is done. An auction is different. The more serious bidders you can bring to your auction, the more likely you are to get a higher price. It's worth it to advertise extensively, even if this costs you some money. Rather than advertising randomly, target people who are likely to actually bid. Look for websites that specialize in real estate auctions and post your event there. Put ads in your local newspaper, and put a large lawn sign on the property well in advance of the auction.

References

• Independent Real Estate Consulting: Real Estate Selling Tips and Inside Secrets
• This is Money: Buying and Selling at Property Auctions