We have discussed extensively on this site the advantages that buyers have in using online auctions to find great properties. However, it should not be overlooked that the auction method is also great for sellers as well.
The seller of a property at auction has absolute control over the terms of the sale. The need for buyer negotiation is eliminated, as the terms of sale are pre-fixed at the time that the auction begins. Therefore, the winning bid is what you get for the property, and you won’t need to worry about the price being reduced after a full inspection has taken place. Also, unlike regular home shopping, no staging is needed by a real estate agent. When the bidder wins the property there is the expectation that there are some minor changes needed before move-in.
The seller has a considerable amount of flexibility in setting the reserve price, the lowest acceptable bid, for the property. Experts usually recommend the reserve to be 10 to 15 percent below market value. This ensures that potential buyers are not put off by a high starting bid yet allows the price to rise enough that the seller makes a good return. Also, should the property not be as attractive as the seller hoped, the reserve price can even be lowered as the auction is taking place.
Perhaps one of the best advantages to sellers is low holding time. As we’ve discussed here at Beloit Auction & Realty, the online auction reaches a vast number of potential buyers, and interest in properties is usually immediate. There’s no need to spend a fortune on advertising; once the property is up online, the bids usually rise quickly, meaning the keys are ready to be handed over within several weeks. Conventional auctioneers can usually get the property sold within 30 to 45 days of signing the contract, and this timeframe can even be less for online auctioneers. That means maintenance, insurance, and tax costs are significantly reduced compared to conventional real estate sale methods.
These are just a few of the nuts and bolts reasons why using online auctions are such a great strategy to selling property. Experts say that auctions, and in particular online auctions, are a rapidly growing means of buying and selling property. While buyers are a key client here at Beloit Auction & Realty, we equally strive to serve the needs of sellers looking for a place to post quality properties in northern Illinois and southern Wisconsin. We hope you’ll consider us for all your IL and WI real estate needs!
See you at the auction!