If you are considering selling your home or business through an auction, it is important to know what types of auctions are commonly used for selling real estate. Real estate auctions may include property only, property with residential homes, or property with commercial buildings. There are three different types of auctions that are commonly held for selling homes or businesses. This information can help you decide which one is right for you.
In an absolute auction, the real estate property is sold to the highest bidder. Even if the highest bid is less than the value of the property or less than what is owed against it, the sale is guaranteed. These types of auctions normally attract many bidders because they know they may be able to purchase real estate at way below what it would cost to buy it straight out on the real estate market.
An absolute auction can be very beneficial if you want to sell your home or business quickly. While selling real estate property at a lower price may not create a huge financial gain, it is better than letting the property sit for long periods of time without being sold at all.
Minimum Bid Auctions
Minimum bid real estate auctions give you the option to set a minimum bid price where the bidding must start at when the auction begins. For instance, if a piece of property has a minimum bid of $75,000, it will only be sold for a price of $75,000 or more. This is especially helpful if you still owe a mortgage against your home or business because you can set the minimum bid at an amount that allows you to pay off the loan.
When minimum bid real estate auctions are going to take place, the amount of the minimum bid must be advertised on flyers and brochures announcing the upcoming auction. This lets potential buyers know that they must be willing to pay at least the minimum bid if they want to purchase the property.
You can also sell your home or business at a reserve auction. In this type of auction, you will have already decided what the bottom dollar amount is that you will accept for the sale of the property. However, this does not mean that you are required to sell the real estate to the top bidder. You have the option to accept or refuse the top bidder's offer.
You may accept or refuse the top bid shortly after the auction or you may take a few days to make this decision. In a reserve auction, the set price you are asking for is not published in advertisements. Therefore, the bidders do not know before the auction if they will be able to purchase the property.
Some real estate auctions also include items such as furniture in residential homes or tools and machines in commercial buildings that are being sold. However, you may want to sell these items in a separate estate sale to increase the amount of money you make from the total sale. For more information, check with companies like North American Auctioneers.Share
24 May 2016
After my wife and I realized that we wanted to buy a house, we started saving like crazy. We skipped meals out with friends, wore older clothes for awhile, and put off family vacations. However, when we finally had enough money saved, we felt ready to buy the house of our dreams. However, finding that perfect paradise was a little more difficult than we anticipated. To help us to find the right place, we worked with a great real estate agent. This blog is about working with a broker to find a place you and your family will love forever.