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Rainmaker
870,828
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

If they have equity, they will find out what current buyers are willing to pay. Plus, sellers pay no commission at auction. The hype can get out of hand at auctions, and buyers pay more than they planned to, and some buyers forget they have to add a 6-10% buyers premium to winning bid. It's case by case. Some properties are good candidates for auction.

May 31, 2015 11:03 AM
Rainmaker
928,876
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Sarah - I think Jeff made some excellent points. Auction can help sellers get their home a guaranteed sale quickly, and sometimes for more money. I don't think buyers realize that they have to pay a premium as the winning bidder. Plus, it never crossed my mind that the seller pays no commission, but that is a good point as well.

May 31, 2015 04:48 PM
Ambassador
5,754,397
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Immediate results

Bidding frenzy often generates higher prices.

Mar 28, 2017 04:19 PM
Rainmaker
3,070,984
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

fast sale

Jun 05, 2016 11:11 PM
Rainmaker
1,558,558
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Last year, the local KW were trying almost every their listing via auctions. It was kind of annoying, since they had these rules of creating 'urgency' and ''excitement''. But since many listings were not getting any results, I believe they abandoned auctions, at least, I do not see them any more. We still have some online and trustee auctions, but only for  distressed sales.

Jun 02, 2015 05:03 PM
Rainmaker
1,466,027
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Sarah Cole An auction is a good option for a quick sale or for a property that may not be selling. Most auction houses want up front fees for advertising, etc. A lot of sellers are not willing or can't pay these fees.

Jun 01, 2015 12:28 AM
Rainmaker
699,177
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

To get the property out of their names immediately.

May 31, 2015 11:08 PM
Rainmaker
909,222
Ritu Desai 703-625-4949
Samson Properties - Chantilly, VA
Northern Virginia,Washington DC & Maryland Realtor

I recently had a seller who wanted to be list their home for auction as regular sale. I tried my best to explain how this won't help and it can hurt ..at the end of the conversation I agreed to ride along. 

All the calls I received were with low ball offers and prospects thought we were distress sale. It negatively impacted the home even though it received more exposure.  At the end it sold as a regular sale from our MLS listing.

May 31, 2015 11:01 PM
Rainmaker
292,585
Jack Lewitz
Exit Strategy Realty - Evanston, IL

There are Reserve Auctions and Absolute Auctions. Reserve is where the seller reserves the right to accept or reject the highest bidder. Absolute auctions are guaranteed sale to the highest bidder. I don't like auctions because their contracts are one sided, the premiums they charge the buyer, and commissions they pay the agents. Also many Auctioneers do not have real estate brokers licenses.

May 31, 2015 10:18 PM
Rainmaker
4,433,809
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the question and the link. I have not seen much of it in my market area.

May 31, 2015 09:16 PM
Rainmaker
612,606
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

Because someone talked them into it.

Personally, I think the auction buyers are mostly looking to steal a property and not pay fair market value.

Eve

May 31, 2015 08:34 PM
Rainer
71,540
Sarah Cole
Strategic Digital Marketing Consultant - http://www.coleconnectmarketing.com - Tully, NY
Strategic Social Media Consultant

Another interesting point is they DO have a Realtor and so I assume commission will be paid AND the Seller has the right to refuse ALL bids.  It's not something I've seen in this area accept when someone is in dire need.  Thanks so much!  I've enjoyed the answers so far.   The only cost is what you pay to the auctioneer or auction company, right?

May 31, 2015 08:18 PM
Rainmaker
2,759,637
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

I have seen folks get in a bidding war at an auction. Folks hate to see others get a deal.

May 31, 2015 07:47 PM
Rainmaker
2,442,569
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Not many do in my market.  Perhaps those who do choose an auction think they will get more money in the moment.

May 31, 2015 03:21 PM
Ambassador
4,316,215
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Sarah Cole - beats me!

I would not want an auction sale for a regular sale.

May 31, 2015 01:43 PM
Ambassador
3,987,010
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

For the speed of it or less hassle. They want a sure sale and want to be done with it in 30 days or less. Absolute auctions work that way.

May 31, 2015 01:09 PM
Rainmaker
1,683,406
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

They think they can make more money on the sale, which is not necessarily true. Auctions can create a sale faster that a regular listing, depending on the price of the listing and the condition of the property.  Of course the location could also be a factor.

May 31, 2015 11:24 AM
Rainmaker
7,038,388
Roy Kelley
Retired - Gaithersburg, MD

The primary benefit is a fast transaction. 

May 31, 2015 10:40 AM
Rainmaker
425,193
Cindy Davis
SD Home Source Realty - San Diego, CA

An auction can move the process along far more quickly than putting it on the mls.

May 31, 2015 09:39 AM
Rainmaker
3,709,835
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Sarah, some sellers think buyers will be more interested a property in auction.

May 31, 2015 09:22 AM
Rainmaker
4,799,732
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

The perception of a potentially good deal.

Jan 19, 2019 07:33 AM