Property Auctions – Advantages to Sellers

Property auctions are the fastest growing niche in the real estate industry today. Could this be because the economy is so bad and the rate of home foreclosures is at an all time high? When homes are foreclosed on and repossessed, the houses will be sold at property auctions to the highest bidders in order for the mortgage companies to recoup their losses. Sometimes homeowners will auction their homes prior to foreclosure in order to save their credit standings. Some experts are predicting that over the next ten years, more than 35% of homes for sale will be sold at property auctions.

Some advantages to sellers who decide to use property auctions to sell their homes is that the sale is swift and there are no ‘pending financing’ provisions set by the buyer. The buyer has the funds available at the time of the auction. Often a homeowner selling their house at auction doesn’t have time to wait for the buyer to obtain financing, and certainly doesn’t have time to put the home up for auction again if the buyer can’t get the financing he needs.

Properties are sold at property auctions in ‘as is’ condition. This means that the bidders are aware that there may be some repairs and aesthetic needs that will have to be taken care of. The buyer does not have to be concerned with spending a lot of money to paint or on new carpet or appliances before auctioning their home. Even if the water heater is about to go out, the buyer is going to be responsible for replacing it. Buyers are well aware of this fact when shopping property auctions and they typically have a window in which they can inspect the property prior to the auction. If they failed to bring a professional home inspector with them, then they are the one at fault if something doesn’t work, not the seller.

Another advantage of property auctions for sellers is that they don’t have to show the house at someone else’s convenience. Sellers have lives and families, even pets. Probably the most difficult part about putting a home on the traditional market is that they can get a call at any time of the day or evening that an agent wants to show the house. Can they refuse? Yes, of course they can, but they’re not likely to sell their homes sight unseen. Also, refusing to show the house to an agent will ensure that that particular agent will not call you again. The family and the house have to be on constant standby for showings. This means that the house has to be clean every minute of the day, and the owner needs to have a place to go where they can take their pets during showings. This can be difficult at times, especially when the call comes during dinnertime or when company is visiting.

Many homeowners aren’t aware of the advantages of selling their houses at property auctions. Property auctions an easy way to sell a house for homeowners who need to quickly unload the property for a variety of reasons. The seller might not get the price they wanted if they had used traditional means to sell, but for some, the advantage of property auctions is worth the loss.

Property Auctions - Advantages to Sellers