> Traditional Method
- Agent signs a six months listing agreement.
- Commission rate of 5-7%
- Cannot tell the client how long before the house sells.
- Client continues to make mortgage, utilities and maintenance payments during listing agreement.
- Client must keep house in order and clean for showings.
- If house doesn’t sell in two months, the price is usually reduced. (Why?)
- When the agent gets a contract, it is usually below the listing price, full of contingencies, repairs needed, seller to pay certain costs.
- Continuous negotiations.
- Agent and Broker In Charge (BIC) hope the deal closes.
> Auction Method
- The seller sets a sale date. 30-60 days
- Competitive bidding brings a fair market price. (Excitement that only an auction brings.) Query: how is selling price determined? Answer: by the market of potential buyer’s, viz., bidders.
- Seller doesn’t have to worry about a clean house. Usually two previews are set for prospective buyers to inspect.
- Commissions are paid by the buyer via a “buyer’s premium” or in some cases a combination of seller and buyer.
- No contingencies, home is sold “As Is Where Is”.
- The down payment required in order to bid, eliminates time spent with unqualified buyers.
- Must close in 30 days or less
- Seller pays marketing fee.
If your home qualifies, we feel the auction method is the fastest way to get your home sold and puts more money into your pockets. For more information, see the section Why Sell by Auction for more information or call us at 252-257-4822 for a no obligation, free consultation.