Are you considering selling your home through an auction? Home auctions are a unique and fast way to sell your property for a price you’ll be happy with. But, as with any sale of this magnitude, it’s essential to understand the process from start to finish to ensure your success (and that there aren’t any surprises along the way either).
To help you navigate the world of home auctions, we have put together this comprehensive guide featuring nine expert tips from the experienced auctioneers at Looper Auction & Realty. Here you will find everything from setting realistic expectations for the auction process and understanding the rules and regulations that come along with it, to preparing your home for an auction and handling bidding wars during the event. Get ready to learn all there is about successful home auctions!
Tip #1: Attend Other Auctions in Your Area
Attending home auctions in your area is incredibly important for selling a home at auction, not just for the auction itself, but for gaining knowledge about the other homes that are up for auction. Being able to observe how bidding works and keeping up with pricing trends are both valuable skills to have before selling a home. By attending multiple auctions you get to see which homes sell quickly, which ones stall and how much they’re going for. This can help give you an idea of the pricing potential for your own home. Additionally, when you visit auctions in person, it’s a great opportunity to network with other auctioneers and get their insights. This is invaluable if you plan to sell your home at auction.
Tip #2: Set Realistic Expectations for the Auction By Having Your Home Appraised
Selling a home at auction can be a great way to maximize potential profit. But it’s important to understand how to set realistic expectations, so you aren’t disappointed on the day of the auction. Many homes sell at auction for a little less than they would on the open market (but keep in mind you won’t be paying hefty realtor commissions).
To ensure that the house is priced fairly and accurately, having a professional appraisal is essential. The appraiser will assess the price of the home based on recent sales data for similar homes in the area. By preparing your home for appraisal in advance, you can better ensure fair pricing with positive results. Decluttering, making any small repairs necessary, and staging it for maximum appeal are all excellent ways to make sure that your property receives an accurate assessment from the appraiser. Doing all this before selling will help you can get top dollar from selling your house at auction with realistic expectations.
Tip #3: Research the Rules and Regulations of an Auction
It is essential that sellers take the time to research all relevant laws and regulations before taking their home to auction. Knowing if there are any deed restrictions or zoning regulations in place can make all the difference between a successful auction experience, or one that leaves something to be desired. Familiarize yourself with any other stakeholders that may need to receive payment from the sale – such as banks, other owners, etc. – and understand precisely how proceeds will be divided. This step helps ensure everyone is satisfied when selling your property at an auction. Taking these important steps before selling your property prepares you to make sound decisions throughout the auction process and helps maximize success on your side as well.
Tip #4: Prepare Your Home For An Auction
Selling a home at auction is a quick and easy solution if you need to offload the property, but it does require some work to make sure the house is in its best condition. Wise sellers start by decluttering the home, getting rid of anything they don’t want or need anymore. Meanwhile, minor repairs and cleaning up the yard can do wonders to shape the presentation of your home and create much-needed curb appeal. Plus, selling via auction eliminates having multiple viewings like you would have by selling on the open market. Instead, potential buyers come to one event where competing bids will determine what final selling price you can get. If you dedicate time upfront to preparing your home, selling it at an auction could be a very wise move that pays off big in the end and will save you time during the process too!
Tip #5: Price Your Property Competitively With a Reserve Price
One of the most important things to keep in mind when selling a property at auction is to set a competitive reserve price. The reserve price is essentially the lowest amount the seller will accept for their property, and setting it appropriately is key for minimizing any potential risk or loss. To determine what the selling price should be, research nearby property prices and consult with a real estate expert. If changes need to be made to your initial reserve price, it should be done as early as possible to give buyers enough time to adjust their bids. Overpricing or underpricing a property can have severe consequences, so it’s important to create an effective pricing strategy before selling your property. As such, sellers should consider contacting an experienced real estate broker who can help them make smart decisions about selling their home quickly and at the right price.
Tip #6: Attract Interested Buyers to Your Home by Marketing Your Auction on Social Media
Selling a home at auction is a great way to gain maximum exposure and interest from potential buyers. With social media, you can reach a much larger audience quickly and easily, but it’s important to have an effective advertising strategy to generate real results. One of the most effective tools for selling a home at auction via social media is utilizing visuals and videos – eye-catching images and promotional materials that draw attention. Additionally, making sure your ad campaign capitalizes on current trends will help to maximize its impact. If you want to attract the right buyers for your home auction, taking these steps for marketing on social channels will help you succeed.
Tip #7: Prepare For Bidding Wars During The Auction
For sellers, bidding wars can be both a blessing and a curse. As bidding wars drive up the price of your property, they can increase your profit margin significantly. However, bidding wars can also discourage other buyers from trying to purchase your home. To be prepared for these instances, you should have a strategy in place. Consider setting a maximum bid increment to help keep price increases tamer when bidding wars become heated. Additionally, it’s important to remember that bidding wars are often driven by emotion – focus on maintaining neutrality during the auction process so as not to make any potential buyers feel backed into a corner. With proper preparation and understanding, sellers can make bidding wars work in their favor and ensure they are selling at a fair price.
Tip #8: Negotiate how the Sale Will be Finalized
Negotiating is an essential element of finalizing a sale, even for home auctions. Before you bring your home to auction, have a frank conversation with your auction house to ensure that all the terms of sale are in your favor. Setting deadlines for payment and delivery is one key way to prevent any misunderstandings and cash flow troubles down the line. Similarly, discussing price points upfront helps to smooth over any potential miscommunications with buyers and guarantees they know what they’re bidding on. Understanding these components of closing a deal after the auction can be empowering.
Tip #9: Work with an Experienced Auction House to Ensure Success
Home auctions are a fantastic way to sell your property quickly and for a price that you’re happy with. But, as with any sale of this magnitude, you should understand the process from start to finish to ensure your success. If you’re feeling intimidated, remember that it’s essential to work with a successful, experienced auction house. With their guidance, you can set a fair and competitive reserve and prepare the home for a successful auction day. They’ll handle much of the marketing and ensure buyers don’t try to pull one over on you.
If you’re looking for a dedicated team of auctioneers and realty specialists, our team at Looper Auction & Realty is here to help you have a successful home auction. When you work with us, you can be confident that we will help you through every step of selling your home at auction so that it is a successful and stress-free experience. Give us a call today to learn more!