In a slow market, auctions can accomplish the same goal as conventional methods, which can take months if not years to sell a property, while selling very quickly. Auctions grab people’s attention, create competition, urgency and excitement while eliminating any sale contingencies or negotiations. As a result, your home is sold quickly to the highest bidder.
There are a variety of ways to perform Texas real estate auctions:
1. Live Single Property
2. Live Multi-Property
3. Silent Bid
4. Phone Bid
5. Fax Bid
The advantages to auctions are…
Auctions can capture buyers from all over the world using international marketing and online bidding strategies.
Property can be sold “as-is”.
Terms of the sale are determined, therefore eliminating negotiations.
Properties can be sold before the auction.
Property can be sold at true market value as determined by a group of buyers who have done their due diligence prior to auction as opposed to a single buyer offer and private negotiation.
All offers are received within a pre-determined time period rather than waiting.
The main disadvantage of auctions are…
Not getting the price you wanted
Up-front marketing costs
You can choose to set no reserve (an absolute auction), or you can set a minimum reserve where if the bidding does not meet that minimum, you don’t have to sell. Absolute auctions attract buyers yet achieve the same excitement as a reserve auction, the lower your reserve, the more buyers you will attract. Consequently, you have to take the highest bid after the reserve is met. Even if you only chose that reserve as a marketing tactic.