Selling Your Home at an Auction in Oakland County, MI

//Selling Your Home at an Auction in Oakland County, MI

selling-your-home-at-auction-in-oakland-county-miIf you are looking to sell your home, you have probably considered the usual realty sales methods: using a local realtor or realty firm, or trying to sell the house on your own or online. These processes work for some, but often don’t meet the seller’s expectations of the sale.

There is one other option that should be considered when trying to sell your home. Selling your home through a real estate auction has an impressive upside. If you have been curious as to what you need to do to take advantage of that upside, here are some tips to consider.

3 Real Estate Auction Tips

Choose a Michigan Real Estate Auctioneer

If you are selling through a real estate auction, you will need to research and hire your auctioneer. There are numerous auctioneers in Oakland County, Michigan so choosing the one that you’ll be most comfortable with is important. Choosing a reputable real estate auctioneer is always a good choice.

Gary M. Berry, Auctioneers – Realtors is more than happy to take care of your real estate auction. No matter which auctioneer you choose, there will need to be a budget set for advertising. Your auctioneer will work closely with you to set the appropriate budget. The marketing budget usually runs between 1% to 2.5% of the expected sale price. The more valuable the real estate the less the percentage of advertising costs. While in some cases the auctioneer may charge a commission from the seller at closing, in most cases the seller has nothing to pay except the advertising. The auctioneer receives his commission from the buyer in the form of a buyer’s premium, which is added to the high bid.

Ensure that your legal documents are all ready to go for when you have decided on a real estate auctioneer. If the property is being sold through a court process, such as probate court, make sure you have a copy of your authority from the court to sell.

Choose Your Price Points

Selling your home through a real estate auction means you are in control of the pricing of your home. Work with your auctioneer to determine the minimum price that you will accept, unless you are selling at an absolute option .

The Real Estate Auction Process

It’s not uncommon to have buyers wanting to make offers before the auction, hoping to buy it for less than they think it will sell for at auction. This is legal, and is completely up to you whether or not you wish to proceed with that offer. However, it is usually recommended to allow the auction process to work in your favor, by allowing competitive bidding to take place as advertised. Most single home auctions are sold on location, at the property.

Ball Room Auctions

However, some sellers of real estate have numerous properties. They may have 10, 20, 50 or more properties they want to sell quickly and efficiently at auction. In this case, the auction will likely work out better in a rented room.

Once the auction starts, the room becomes a very exciting place to be. These auctions are usually held in a hall or a large room, and are often full of people trying to purchase a home for a reduced rate than normal. In most cases, the reserve price will be met and a throng of frenzied bidders will continue to drive up the price until it’s finally sold.

If you are selling in a reserve auction, and the reserve price is not met, it doesn’t necessarily mean the sale is over. You are still entitled to sell your property, but may have to sell it at a lower price than your reserve. The opportunity to negotiate with a buyer remains, and you’ll be able to ultimately meet your goal of selling your home (or homes) quickly.

Many sellers choose to sell their home at auction in a confirmation auction, without a stated reserve or even an agreed upon price. They wait until the bidding is done and the high bidder signs a purchase agreement and makes the required deposit. Then the seller can decide to accept, reject or counter the offer. In most instances, the sellers are happy with the offers, and accept the auction offers as bid.

Sell Your Oakland County Property at an Auction

If you are interested in selling your home via real estate auction in Oakland County, contact Gary M. Berry, Auctioneers – Realtors today and we will help you reach your goal.

Contact Gary M. Berry, Auctioneers – Realtors at: 248-299-5959.

By | 2017-01-17T22:08:30+00:00 January 25th, 2016|Real Estate Auctions|Comments Off on Selling Your Home at an Auction in Oakland County, MI