Traditional vs. Auction Method: Why People are Choosing the LatterBy Angela Smith, Communications Manager
March 11, 2017
While most of us automatically consider listing our home or property via the traditional method, there is another option out there...
Many sellers don’t realize that they have a choice when it comes to selling their property. While most of us automatically consider listing our home or property via the traditional method, there is another option out there for those who may want to sell for more money and a lot faster. United Country Real Estate office owner and auctioneer in Floyd, Va., Matt Gallimore, has increased his business in the last couple of years by double digits. A majority of the increase has come from auction real estate sales.
He said more and more people are choosing the auction method to sell their property for a variety of reasons:
- There’s no cap. At list price, there’s a chance you can leave money on the table if you don’t do diligence right. Auctions bring market value.
- The timeline is right. It creates a buyer urgency because it has a deadline. Normally, it is 45 days from start to finish.
- It creates competition. As Gallimore puts it, “I’ve had people come to an auction who were looking to buy another property that was similar, but they wanted to see what happened at the auction first.”
- It’s a cash deal. People have to put down earnest money at an auction. The earnest money also makes it more binding than a traditional real estate contract that is easy to back out of. That’s attractive to a seller.
- There are options within options. When you’re selling your property at auction, you can sell your land in one or in multiple tracts. There are also three different auction types: absolute auction, minimum bid auction and reserve auction. You are able to decide which fits your situation best.
There’s advantages and disadvantages. I always say it’s the most aggressive form of real estate marketing that I know of. It creates maximum exposure for a property solely from the word ‘auction’. People really start talking about it and it accelerates the whole process.”
If you’re interested in learning more about auctions or finding out if you are a candidate for the auction process, visit www.UCAuctionServices.com.