Selling a house at auction

There are different methods that one can use when selling a house. While many will look for housing agents to conduct the sale, there are those that use auctions to dispose off their homes. But why would someone use an auction to sell their home? Who is likely to use this method to sell off their home?

Extra information about selling a house at auction

Who uses this method?

There are those people who are forced by circumstances to sell their homes through auctions. These people include those whose mortgages are overdue and are facing imminent foreclosure. Through an auction, they can raise money to pay off their mortgages and have some money left to get themselves a new place to live. The second category is those who own luxury homes and would like to maximise on their return.

The Procedure

The first step is to identify a great auctioneer. Remember auctioneers specialise in different things and therefore, if possible you should choose one who specialises in the type of house you are selling. When selecting the best auctioneer, remember to compare their fees, mode of payment, their level of experience and skills. Once you have selected the auctioneer, you can now agree on the time frame for the auction and other details. Next, the auction is open to the public for the agreed upon period. Once the period elapses, the bids are evaluated and the best deal is awarded the house. You then receive payments, pay off the auctioneer and move on with life.

Advantages of auctions

An auction can raise more money than the usual house sales. In addition to this, auctions are a fast and effective way of selling houses. The auction may take a fraction of the time that a normal house sale would have taken. Therefore, they are efficient when time is really a factor such as when the house is being sold to avoid foreclosure. The house is only open for viewing only a few hours before the sale. This means that the home owner's privacy is not intruded by potential buyers who would like to view the house severally.

Legal requirements for selling a house at auction

An auction facilitates the transfer of ownership of the home from one person to another. This means that there are laws that govern this transfer. Before the auction, you should consult with a real estate attorney to find out what laws you need to adhere to during the process. Your auctioneer should also have a good grip of the laws to avoid contravention and therefore legal trouble.