If you think about it, the COVID pandemic has had a major impact on the housing market. People stayed home, they made money but didn’t spend it… and now they have money to spend, and they want to move… There aren’t enough houses on the market to satisfy demand in many places, so prices are higher than before, and it’s not unusual for a home to sell for tens of thousands dollars more than what the sellers ask for– and that’s just with negotiated deals.
So, should you sell your property at an auction? Yes. And now is a great time to do it. There are a lot of buyers looking for properties, and there aren’t too many sellers, so that’s driving prices up, up, up.
The best part of an auction? There’s no ceiling when it comes to the “top” price. Rather than go with a negotiated sale, why not choose the auction route and see how much money you can get? Auctions create competition, and can lead to bidding wars. If you’ve got two or more people interested in your particular property, and they’re caught up in the heat of the moment of an exciting auction, who knows where they’ll stop when bidding? Here’s an example: You’ve got a property you think is worth about $200,000. You might get $225,000 via negotiated sale. But at an auction, maybe you’d get $300,000 or more. Competitive bidding increases the buyer’s chance of paying even more than they wanted to, and that’s good news for you!
Another reason people sell properties at an auction is when there’s a slow market. While that’s not the case right now, it could happen in the future– and/or it could be the case in certain markets where people are trying leave (rather than fleeing to)… in this case, rather than have your property linger on the market for months or years, you can save time and money by putting the property up for auction where it should hopefully sell for its true value fairly quickly.
Why are property auctions so popular? Well, they attract serious buyers with deep pockets who want to buy properties– not just lukewarm lookers! Auctions also attract investors who are looking to pick up one or more properties in an area for their own reasons. Plus, some auctions put buyers through a prequalification process in order to know they have the money to back up their bids. They might also ask for a nonrefundable deposit which helps weed out less-serious buyers. Auctions can get competitive and certain people come to win!
If and when you decide to sell your property via auction, one of the best parts about this process is that you’ll know the date and time it will sell. You don’t have to sit around and wonder, “Is anyone going to buy it? When can I get rid of it?” You can truly expedite the selling process thanks to auctions. For those selling homes, this can help them budget accordingly, especially when it comes to things like mortgage payments, taxes and home maintenance expenses.
Do you currently own a property in Ohio, Indiana or Michigan and would like to auction it? Wilson Auction & Realty Co. of Bryan, Ohio, can handle the auction process, and make the sale of your property something that causes you less stress than it needs to– just call 866-870-5500 to speak with someone about property auctions. To read about the company, visit here.