When selling a house, people assume they have two options, sell it through a real estate agent or sell it themselves. There is a third option that is generally reserved for high-end homes or very low-end homes, and that is the home auction. An auction is just a quick way to market and sell your home within a certain period of time. Properties are often sold through auction because sellers don’t want to be continually hassled with buyers walking through their home and even going through their personal belongings; And no one wants unskilled buyers, who are just watching, wasting both the realtor and the seller’s time.

There are two main types of auctions, sealed bid or auction clamor. Regardless of the type of auction, the Bidder or buyer and the Broker or agent qualify the buyer by completing a registration form for the Auction in advance. By completing these forms, they must disclose that the buyer is (1.) approved for a loan and (2.) if it is in cash, the buyer has the funds in the bank. Potential buyers MUST register beforehand.

An Opening Offer is advertised and is generally on the lower end of the home’s value. Sometimes a seller will keep a reserve quantity … that is, an amount that must be reached before the seller must accept the offer. So the seller may decide to have an opening offer of $ 800,000 and a reserve amount of $ 1,000,000. Therefore, if the highest offer is $ 900,000, the seller does not have to accept it, as it is lower than the reserve. However, the seller can choose to accept it, regardless of not fulfilling the reservation. If an offer meets or exceeds the reserve amount, the seller is obligated to sell the home.

A sealed bid auction is one in which all qualified bidders submit their best and highest bid. All offers are sealed until a specified date and time when the offers are publicly opened. An auction clamor is a live auction, in which a participating auctioneer advances the process, beginning with the initial bid and ending with a winning or final bid.

Regardless of the type of auction you choose, it is a great way to speed up the entire process of selling your home.