Selling Your Property at a Real Estate Auction
Selling a property at a real estate auction can be a lot of fun and profitable as long as you follow a few simple rules. So you have a condominium and it's been sitting on the market forever and you have to get rid of it. You paid too much a few years ago, but that doesn't matter now, you just want to get rid of it. Your real estate agent keeps telling you that you need to lower your price. You really don't know what to believe and you're at your wits end.
Selling your property at a real estate auction might be the solution. The one thing that auctions are known for is bringing a fair price to the table. As long as the auction house does its job with the marketing for the real estate auction, you should have plenty of bidders ready to move forward on your real estate. If you do not have a lot of bidders and the real estate auction was marketed well, maybe your piece of real estate is just not that popular. But for the sake of this example, let's say that your condominium is quite sought after and you're ready to attempt selling the property in a real estate auction.
You have to choose one of three types of real estate auction: absolute, minimum bid and reserve. Each one of these has an impact on the bidding process and what you might end up getting in return.
The absolute auction is an auction that will get the most amounts of traffic and excitement. It's an auction that the piece of real estate will sell regardless of the amount of the purchase price. The seller does not set the price for bidding; the price is set by the buyers. This type of auction is loved by the buyers. They know that regardless o the price the seller has to sell.
The second type of real estate auction is the minimum bid type. This is an auction where the seller states a price that the auction has to minimally hit in order for the real estate to sell. In the example of selling a condo for $500,000, the seller might say, I would like no less than $150,000. Once the bid hits at least $150,000, the seller has to sell the condo.
The last type is the reserve. The reserve means the seller can accept or reject the highest bid.
