In a slow market, house auctions can accomplish the same goal as conventional methods, which can take months, if not years, to sell a property.
House auctions grab people’s attention, create competition, urgency and excitement while eliminating any sale contingencies or negotiations. As a result, your house is sold quickly to the highest bidder.
How to Perform Texas House Auctions?
There are a few ways to do it:
- Live Single Property
- Live Multi-Property
- Silent Bid
- Phone Bid
- Fax Bid
The advantages of house auctions are:
- House 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 the auction as opposed to a single buyer offer and private negotiation.
- All offers are received within a predetermined time period rather than waiting.
The main disadvantage of house auctions are:
- Not getting the price you wanted,
- Upfront 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.