What comes to mind when you hear the word “auction”? Fancy art? High-end classic card? Foreclosed properties? While these items may dominate the auction market, real estate auctions for homes and other kinds of real property are rising in popularity too.
In some cases, real estate auctions give sellers more control over the transaction price and timeline. Here’s a rundown of why and when you should consider an auction to sell your property in Colorado.
Why Sell Your House at Auction?
In a perfect real estate world, the property for sale appeals to the masses, the market favors the seller, and the seller vacates the property before the final walkthrough. Unfortunately, we do not live in a perfect real estate world, and alternative circumstances call for alternative methods. In the case of listing a property for sale, alternative circumstances may prompt your broker to explore a real estate auction.
When a property doesn’t fit the mold of a local real estate market, a real estate auction can help it sell faster and reach a wider buyer pool. If this property sits on the real estate market at a fixed price, it misses the opportunity to show up for buyers who may be interested but have their price parameters defined differently. Instead, a real estate auction starts the property at a certain price but allows buyers to offer what they think it’s worth without enduring a months-long negotiation battle.
Real estate auctions are also the preferred way to sell a combination of real estate and personal property. For example, a farmer selling his land, home, barn, tools, and farm equipment can use an auction to sell everything in one day, and potentially even to one buyer. Alternatively, someone who wants to sell a house completely furnished may prefer an auction for the lot versus clearing out the house with an estate sale before listing the property on the traditional real estate market.
Should You Sell Your House at Auction?
Real estate auctions also give sellers control over when their property sells. If a seller plans to use their profits toward the purchase of another home, they can set the auction date to ensure they have enough money and time for a successful next transaction. This control also helps sellers navigate buyers’ market conditions with more peace of mind.
Using an Auction Deadline in Your Listing Contract
However, not all sellers are ready to jump two feet into an auction to sell their house. In that case, a seller can use an auction deadline in their listing contract. An auction deadline specifies that if the property doesn’t sell by a certain date, it will then go to auction. In this case, a real estate broker would list and market the property as they would any other, and they’d only start promoting the auction once the deadline passed.
Listing Your Property with a Broker and Auctioneer
A modern real estate auction is easy, convenient, and offers ample benefits to clients in unique selling situations. 99% of all auctions, including real estate, are done online. In some cases, the bidding is opened prior to the day of the live auction, and in others, the auction is completely online.
After many years as a broker, experiencing the benefits of real estate auctions for my clients, I graduated from America’s Auction Academy in 2019. Now, I can help clients with special properties and situations take advantage of the benefits of real estate auctions and auction deadlines. United Country Real Estate has partnerships with corporate auction companies like AuctionTime and HiBid, giving our sellers a breadth of opportunities to get the highest possible prices for their properties.
To inquire about listing your Colorado property at an auction or including an auction deadline in your listing contract, get in touch with me below.