You can most certainly auction your own home using online services. You cannot, however, auction your home in person. In most of the states, you cannot host a public auction for your home without being bonded for well over $10,000 and having a licensed auctioneer there with you.
This is an option where you can do what is called a reserve auction. This is similar to a silent auction that is used within the eBay system. You will need to check your local laws to see whether there are any restrictions in your state for doing your own reserve actions for real estate. Basically, you prep everything for sale with mass mailings, posting handbills and creating ads to go in publications so you can attract buyers to the open house with a minimum bid that is set in place. It is quite safe to sell without agents or auctioneer; however, if this is your first time doing this, professional assistance might not be so bad.
There are many programs available to make your own house brochure online. From there, you can secure a broker to be there with you on the auction day. The best thing you can do to help your auction out significantly is to offer to call all bidders throughout the time to allow them a chance to top the highest bid before it closes at a certain time previously arranged.
If the highest bidder’s finance falls through, you can then move down the list to the second highest bidder. There is a problem doing it this way, and that is there is too much for sale inventory, so you may not merit a huge amount of attention as the rest do the same thing unless you have a well-located property with a very generous price for the reserve. This means you may need to put on offer a home that has been valued at $350,000 for a reserved price of $260,000. This is a game not for the soft-hearted.
While it is safe to do it yourself, it can be beneficial to get an agent to take over where they have far better marketing strategies than you have access to, which can reach more serious buyers. If given the right conditions, they can sell your own home fast with no hassle. Be aware that there are auction-house fees, which can be as high as 9% and are often split in various ways between the buyer and the seller, also known as the buyer’s premium. Most of the time, the sellers take on most of the fees.
Be prepared that auction attendees are only out to seek rock-bottom bargains. You have online auction sites that will command a smaller commission; however, they cannot get a huge frenzy like you see in live auctions. If you don’t use the words absolute auction, then your home will not be sold unless there is an agreement that you sell for a specific bid amount that can meet the minimum objective within the auction venues.
Making small changes to your home can also help increase its value before you auction it. Simple updates, such as repainting, upgrading fixtures, and enhancing curb appeal, can make a significant difference. Consider using wire and mesh to create attractive fencing or garden features that can boost the exterior look of your home. Wire forming can also be used for various decorative elements inside the house, adding a modern touch that appeals to potential buyers.
If you are not sure about setting the best value for your home, consider seeking professional help. Investment property advisors in Melbourne can provide expert guidance on pricing and market trends, ensuring you set a competitive yet realistic reserve price. A property advisor can also help you understand the intricacies of the auction process and maximise the potential return on your property.
All in all, auctioning your own home can be a viable option, whether through online platforms or with the assistance of a professional. By understanding the legal requirements, preparing thoroughly, and possibly making strategic home improvements, you can increase your chances of a successful sale. Ultimately, the decision to auction your home yourself or with professional help should be based on your confidence, knowledge, and the specific circumstances of your property and market.