Questions About Auctions: What You Need To Know! Part One

Part One: The Basics

Do you have a home that you would like to get rid of but just aren’t sure how? Maybe an auction is right for you. Auctions are becoming increasingly important to talk about. The worst thing you can do is agree to an auction (not knowing a thing about them). We are going to talk about auctions (some of the pros and cons) and how it can apply to you.

Most people wonder if there is there a minimum in terms of the price of the house that is recommended. It sure would be nice if there were a minimum bid for you to use as guideline, wouldn’t it?

But in reality there is no minimum bid. The auctioneer will ask you what is the least you can take and let us say for his case it is about $475,000.00. That should excite the auctioneer!
But is there a minimum price? Essentially, do you have a house that might only be worth about $160,000, and you’d like to see if you can auction the house out? Good thought, but in reality that is too low of a house to do an auction on. The auctions usually are for the higher priced properties and for junkers to investors. You have to be careful what type of auction is actually being held. If you have an auction being held that is going on for owner occupants, no investor is going to come in there and buy anything. Look at the value and determine if it is worth it.

Another thing you should question yourself on is your market. Are you marketing to out-of-town owners? You should ask the auctioneer who he is reaching out to. Who is the audience? He is certainly going to mail to his list but I think you are going to get a bigger bang for your buck right there in the market where it is.

Now keep in mind, he will mail to those but I think your newspaper advertising should be done in your surrounding area there. If your home is a significantly smaller amount (less than $200,000) then this might not be a big enough house to really attract. When you do national advertising like this you are talking multi-million dollar houses normally. Again you best bet is to look at the value and determine if it is worth it.