Why would someone choose an auction over selling in a listing with an agent?"

I was recently asked, "Why would someone choose an auction over selling in a listing with an agent?"

A home owner may consider an auction if the home owner wants an immediate sale (45 days to advertise & auction, VS. 120 days in a Realtor's hands).

There's different types of auctions: absolute auctions mean a sale will occur that day, even if the highest bid is $1. If you are considering selling your home at auction, I would recommend an auction with reserve (meaning that the bids must reach a specific $ amount for a sale to occur). The property owner must pay all advertising and auction's premium (like a commission), whether or not the home sells.

As a buyer at an auction, you will be buying the home "as is" condition. Your good faith deposit may include a 10% down payment the day of the sale. You will also need a pre-approval letter from your bank as well. or if paying cash a source of funds letter.

If a home owner wants an immediate sold, then auction is a viable option.

If however, the home owner is wanting to the best possible price the market will give (maximuming equity), then listing a home thru an aggressive listing Realtor is still the answer.

Look for more answers to frequently asked questions from Angela Clark coming soon! And please, free feel to ask Angela via website, www.AngelaRClark.com