Selling a House at Auction: Proven Tips That Work Like Magic

selling a house at auction

Have you been trying to sell your house but have no positive result? Do you wish to sell your property within the shortest time possible? Or have you been looking for a way to sell your house at auction without stress?

If your answer to any of these questions is yes, then you are in the right place.

In this article, we will show you the nitty-gritty of how to sell your house at auction within the shortest time possible.

We will also guide you on the steps to follow and give you some proven tips to instantly make some money whenever you desire to sell your house at auction.


What is Auctioning?

Auctioning, in its simplest form, takes place when different buyers tender competing offers either online or on-site. And at the end, the house is sold to the biggest or highest bidder. It is an effective means of selling your home, especially if you want security and speed.

You can opt for auctioning if your property requires many repairs and you find it hard to sell the house on the open market. After the auction bidding is concluded, the buyer has to pay a deposit immediately.

If they fail to complete the payment, not only will they forfeit the deposit, they will also pay some fees and face some penalties, as the case may be.


Advantages of Auctioning

Auctioning has many advantages. They include the following:

 pros and cons of selling a house at auction

  • The sale process is simple and does not need any negotiation from your side
  • Your buyer covers every real estate commission with a non-refundable deposit
  • Auctioning deadline is usually within 30 days or less and reduces carrying costs
  • The deadline leads to an urgency for the buyers, which pushes them to buy the house on time
  • Due to the competitive process of the bidding, you will get the market price of your property
  • The sale does not depend on checking and inspections
  • The buyer does not require you to do an additional job on the property because you sell it as-is
  • You don’t need to stress yourself. Experienced professionals in auctioning are responsible for carrying out the promotion, paperwork, marketing, and auction event


Tips for Selling Your House at Auction

Contemporary Indian architecture 6 Bedroom house plan - ID 26705

Auctioning your house can be overwhelming, especially if you are a first-timer. You have nothing to worry about because we will be sharing tips that can help you to sell your property quickly and with minimal stress.

If you practice the following tips, rest assured that your house auctioning outcome will be nothing less than magical.


1. Find an Auction House That Knows the Local Market

    Before you start, you need to search for an auction house or real estate agency. Seek companies that have experience in auctioning homes around your area or neighborhood.

    You can search online for the top auction houses in your location by inputting the the name of your city or town plus the phrase ‘house auctioneer’ or ‘auction house’. Check websites like Zillow, Loopnet, Trulia, and Rightmove.

    View the contact details on the listings and compare their prices from the results of recent sales. Check the number of properties they have successfully sold.

    You can also attend their auction before you decide; this will help you to have a greater sense of how they will handle your auction. 


    2. Set an Accurate Reserve Price

      what is the process of selling a house at auction

      You also need to select a feasible reserve price, depending on the current property sales. The reserve price is the lowest price you can sell the property. You can discuss it with your agent.

      To select your reserve price, you need to compare the asking price of houses similar to yours and then check the price they are eventually sold. Make sure that you select a reserve price that people are comfortable with, depending on the true worth of your property.

      You might chase away your buyers with a high reserve price. So, ensure that your reserve price is customer-friendly. Note that you should keep your reserve price as a secret between you and the auction agent. It would be best if you do not expose it before the auction time.


      3. Reach Your Target Customers Through Multiple Channels

        After you’ve consulted with the auctioneer, the next step is to promote your property. If you want people to develop an interest in your forthcoming auction, you need to market and advertise your home effectively.

        It’s best to inform the buyers that your home is on the market by displaying its best characteristics. It would help if you utilize different channels for promoting your property because auctions generally have a short window with a particular deadline. You, therefore, have only a few weeks to attract your potential house bidders.

        Consequently, you have to use multiple channels to reach as many prospective clients as you can. You have to engage in saturation marketing that uses various channels concurrently and repetitively in the short advert period. Some of the channels you can utilize are:

        • Print media
        • Digital marketing
        • Word of the mouth
        • Signage
        • Social media marketing
        • Listings
        • Press releases
        • Outreach to buyer’s agents
        • Dedicated website
        • Promoted social networking

        Note that your budget for advertisement should be between 0.5% and 1% of the final sales price. This is because you are to pay the whole cost of advertising and marketing, even if your property does not end up getting sold at the auction. Therefore, you have to effectively utilize your budget so as not to run at a loss.


        4. Ensure that Your Property is Looking Its Best

          Note that a vast number of people will come to your home to check it out and decide if they will bid — even before the auction. You need to make the house look its best, especially if you hold the auction on your property.

          Multipurpose commercial building - ID 29801

          Clean your home thoroughly from top to bottom. Make it clutter-free, arrange the furniture, and make the home inviting. This will facilitate easy movement for your buyers without bumping into things. You can also keep bulky stuff in the storage. 

          Also, pay particular attention to the curb appeal of your home. Your home’s exterior is the first thing any buyer will see as they inspect. You can improve the curb appeal by doing the following:

          • Planting flowers
          • Painting the front door
          • Sweeping away the debris and spider waves from porches, windows, and eaves
          • Pruning the trees, lawns, and shrubs
          • Washing the windows
          • Fixing broken mailboxes and light fixtures

          Having a clean exterior is not only nice but also shows potential customers that you took care of your property. 


          5. Handle Quick Repairs

            selling a house at auction

            Due to the little time you have for the house sale, you might not have time for major renovations. Therefore, you have to focus on fast repairs to handle issues that may discourage your potential customers. Check through the house and handle easy fixes such as:

            • Fixing loose tiles
            • Removing carpet stains
            • Tightening leaky faucets
            • Tightening door knobs and handles

            You can also purchase new appliances, install new hardware on the cabinets, and paint the interior of the house to give it more value during the auction.


            6. Present Your House in the Best Possible Light

            selling a house at auction

            During the open house inspection, you need to present your house in the best possible light and showcase its best features. Wow your target buyers with your house; it would be best if you attract as many interested buyers to your auction as possible. 


            7. Make the House Deal-Irresistible

            This can be achieved when you offer buyers bonuses that they will love. You can contribute to paying some of the closing costs. You can also provide them a transferable home warranty. With these, a potential buyer will be more at ease and assured that the home is protected. And they will be more than likely to buy the house.


            Other Ways to Sell Your House

            You can also sell your house by yourself or through a traditional realtor.

             how does selling a house at auction work

            1. By Yourself

              The process of selling your home or property yourself is also called “For Sale by Owner” or FSBO. It is not the same as auctions and a lot of private real estate sales.

              Here, you don’t require a professional to put you through or take care of the selling and advertisement process. Self-motivated homeowners mostly practice FSBO sales. It is believed that many people jump into FSBO because they want to avoid paying real estate commission.

              As a norm, realtors usually charge some commissions, and sellers generally pay them when their homes eventually get sold by the realtors. But when you use FSBO in selling your property, you get to save a lot of money and enjoy the profit alone.

              However, this method can be quite ineffective and slow as some of the houses don’t sell, and when they do, they are sold for less than the regular price. Successfully selling your property by yourself often requires extra effort and expertise from you.


              2. Through a Realtor

                This is the most standard method and accounts for up to 89% of homes sold. It entails working with an agent to sell your home.

                In this method, you will have to contact a realtor who will advertise and market your house until a buyer is available or the listing agreement expires. The realtor is responsible for representing you during negotiations with your prospective clients.

                The only downside of this method is that it is expensive, as realtors often charge high commissions for their services.


                Get It Done Successfully

                If you want a quicker and hassle-free way to sell your home, auctioning is your best bet. The process can be a daunting task. But with the above tips and information, you will be able to sell it with minimal stress and get your return on investment in no time.

                Recommended Articles