In this buyer's market, it pays to evaluate new strategies as a means to get properties sold.  This is where real estate auctions can offer an alternative to the traditional method of selling real estate.   

Often, auctions are used as a last resort after a property has languished on the market for months.  This usually results in a lower sale price since the home has the stigma of being over-valued or undesirable. 

When auctioning is used first, the property has not been subjected to negative market conditions and a true market value can be established.  The seller can protect himself by setting a minimum bid and the buyers can establish the property value.  Sometimes this will exceed the seller's expectations.

Here are some facts about real estate auctions:

  • They are generally conducted "as-is, where-is".  Buyers are encouraged to have a home inspection in advance of the auction, but with no expectation of the seller addressing the issues found.
  • They eliminate buyers who are not serious.  Bidders are presented with the seller's contract and must pre-qualify for financing, make a substantial cash deposit the day of the auction and come prepared to close within the specified time period.
  • They often mean selling with no contingencies.
  • They are a call-to-action.  A traditional "for sale" sign tells potential buyers that the home is available for sale.  They can look today, tomorrow or next month.  An auction sign says, "this property is selling on this date and time."  Interested parties are given a sense of urgency and a reason to call.
  • Auctions are usually scheduled 4 to 6 weeks after the listing agreement has been signed. The closing is then scheduled 30 to 45 days after the auction.  This saves the seller carrying costs and gives him control over the timing of his move.

What if a property does not sell at auction?  Not all homes will be successful at auction.  For this reason, we will evaluate the home carefully before recommending this method.  If the property is considered to be a good auction candidate, it will probably sell this way.  However, if it does not, we will have identified a pool of interested buyers to whom we can market the home directly.

Keller Williams Capital Partners has partnered with Garth's Auctions, Inc. in order to provide the very best auction services to our interested clients.  Garth's has been conducting successful auctions since 1954 and is one of the nation's leading auctioneers of art, antiques and decorative objects.  Garth's is known throughout the country and beyond for its high level of expertise and integrity and for achieving excellent sales prices for their clients.

If you are interested in discussing the auction method of selling real estate, call us at 614-431-9111 or email us at  labuda@kw.com,