For the savvy homeowner, the selling activity is always an exciting and rewarding experience. However, there will be instances where things will not turn out the way you expect them to be. There are simply a lot of variables that are beyond your control. The moment you put your home on the selling block, the length of time of your stay on the market will also be measured, until your home is finally sold.
One of the issues that you have to take into account is the emerging trend of moving homes for sale through auctions. It is seen as a logical option when selling homes on the fast lane, albeit with some downsides that tend to deter most homeowners. Going for better selling opportunities by putting homes on the auction block is turning out to be a viable strategy for those who want a quick sale of their properties. This is especially viable when conditions allow for more flexibility when it comes to the final selling price of the home being sold through auction. That being said, it is still important to note that despite the high probability of making a sale in as fast as 3 - 4 weeks, not all homeowners will find the final selling price attractive.
If you find auction an attractive proposition, then it is important that you observe due diligence and adopt this simple procedure to ensure that you get the most out of this selling option.
1. Determine your profit margin
You primary concern is your allowable spread when selling your home through an auction. How much money are you willing to accept when selling your home? It is essential that you are aware how low you can go as far as your selling price is concerned. The amount must be sufficient to cover your mortgage and help you get settled in your new home. There will be instances that the auction price will not be sufficient to cover these two critical cost items. This means that you will have to provide the bridge fund to cover the deficiency. However, this is not a real concern if you have sufficient equity.
2. Compute the fees and charges
The auction house will take a certain percentage from the auction price of your property. The fees will normally start at 6% and upwards. Thus, you have to make sure that you get the sharing arrangement with the auction house in writing and consider all scenarios so you don't get blindsided by hidden charges. The last thing that you want to happen when selling your home through auction is getting hit by expense items that were not taken into account prior to the determination of the minimum margin.
3. Choose the right auction house
Most major cities have good auction blocks that cater to homes for sale. It is best that you gather relevant and current information so that you can link up with the right auction house. Your ideal choices are those companies that actively advertise their service and have a reputation of being a consistent fast seller of properties.
4. Consider absolute auctions
There are two routes to choose from when you decide to go for auction. The absolute auction involves the sale of the property to the highest bidder. This auction type is a surefire way of selling your property when your primary concern is the speed by which you can make the sale.
However, this type of auction will leave you with no other recourse but to accept whatever amount the winning bidder submits. This makes it a risky proposition, and you have to seriously assess your chances and manage your risk so that you don't get burned when you opt for this type of auction.
Learn how to sell your own house here: For Sale By Owner
If you're looking to buy a home from an FSBO listing check here: FSBO Listing
Article Source: http://EzineArticles.com/?expert=Laurel_R._Lindsay
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