I cannot tell you the number of sales I have missed out on because someone thought I only “auctioned” real estate, viz., houses and land. While not all houses qualify for an “auction”, it is also true not all houses qualify for a traditional listing agreement.
I am currently dealing with three properties that would be very difficult to sell using a “listing method” marketing approach, i.e., sign six-month listing agreement, put a sign out front and put it in the local MLS (Multiple Listing Service). Each one is unique regarding location, condition of property, zoning, and pay-off, out of state owners, etc.
On the other hand, there are some homes that could, and I say could, be better to list rather than auction. These could be properties that are in excellent condition and good locations where there is a high demand, sometimes called “hot pocket” areas.
Actually, these homes create a superficial “auction” in themselves as multiple offers are received in a short period of time after hitting the market and you are told to, “Send in your best and final offer.” (Increase your bid!)
Due to a misunderstanding of how auctions work, some homeowners don’t want their home marketed as an “auction,” because the neighbors may think they are in financial trouble or something bad is wrong with the home. They don’t understand that auctions are not just for distressed or foreclosed properties.
One of the difficulties I have in talking with potential sellers, is that “auctions” create excitement and can bring the best price through competitive bidding. The home can be sold in 30 to 45 days after signing an auction agreement.
In addition, their holding costs are reduced, i.e., property taxes, mortgage payments, insurance and maintenance, not to mention, the buyer pays our commission through a “Buyer’s Premium.”
Yes, there is a cost to the sellers as the seller pays for the “marketing” fee which can be 1 to 3% of the value of the property. But this is much less than the 6 to 7% charged through a traditional listing agreement.
Can we list your property rather than auction? Sure! Which method is best: auction or list? We don’t know until we have sat down with you, have seen the property and conducted our due diligence.
Be sure and visit our web site at www.cansellnow.com.
Give us a call at 252-257-4822 and let us help you decide which option is best for you. BTW, we conduct business in eastern North Carolina that includes the Raleigh-Durham-Chapel Hill area.