Home Auctions Soar

Auctions are fast becoming the favorable choice for those who want a quick sale. 

"As the housing market slows and foreclosures spike, people who have to sell quickly or lenders that need to unload properties they took back at sheriff’s actions are turning to the fast-talking spectacle for quick sales.  Even some homebuilders and condo developers are using auctions to reduce excess inventory."

Source: msnbc.com

I wish I could say it’s a win-win situation for both buyer and seller.  However, oftentimes the seller misses out in maximizing the full potential value of his property in auctions. Sellers should not expect their property to sell at a good price, not unless it is unique and in demand. 

Most buyers who go to auctions are after a bargain.  Some are even bidding on properties they have never seen, in their desire to purchase a cheap property. It could present a great opportunity for them, but buying an unseen property always has risks involved.  Not unless you bought a property way below the market value, you are taking chances on a property that may need major repairs.  Some major property damages are not visible from outside the house.  These includes structural damage, termite infestation, broken pipes that needs replacement and other repairs which could cost more than your winning bid.

Property auctions are not for everyone.  If you’re a buyer after a genuine bargain, make sure you do your research in the property your planning to bid.  Set a price limit based on the data you’ve gathered regarding the sold prices of similar properties in the area. Finally, during the auction day, remain objective…don’t get emotional into bidding aimlessly for the sake of winning.  It can get provokingly competitive during the auction, so make sure you don’t go beyond your limits. 

Check out this article "More are SOLD! on the idea of home auctions" for more insight on what goes on in an auction, how much properties get sold and what is in the buyer’s psyche when they are making a bid.