So you’re looking to sell your home, and you have what you think are two attractive options: traditional sale and auction. How do you know which is best? It’s time to analyze the benefits of each. Here’s a look at the experience and advantages of both traditional sales and auctions:
Speed: The real estate market is unpredictable, but auctions have a reputation for being the fastest way to sell a home. Not only can you most likely go to auction faster than you can get your home on the multiple listing service (MLS), but homes sold at auction are also sold “as is,” meaning there’s no stipulations a buyer can come back with after the home goes under contract.
That said, traditional home sales can move quickly, too. It all depends on the market, your home and how your home is priced.
Market: A traditional home sale is more likely to draw a wide market. More prospects should mean more interest, which could drive up the price of your home. At auction, you have a single sale date and the only buyers are those who choose to show up, whether the auction is held in-person or online (or both).
Which of these is better? Again, it depends on your situation, but traditional home sales are more likely to create a wide market that helps secure the best price.
Costs: When you choose a traditional home sale, you’re going to pay realtor fees that ideally are worth the value your agent provides. There are fees related to auctions, too. Before you choose one or the other, make sure you have a full understanding of the costs associated with each. Then, think through the price you’re most likely to fetch on the open market versus at auction. This should give you a nice cost analysis and help you make a decision about which path is best for you.
Certainty: When you put your home up for sale at auction, you know when it will be sold — most likely. Auctions have a reserve (or minimum) price that must be met for the highest bid to count. If no one meets the reserve price, you’re back to square one. There’s far less certainty when choosing a traditional sale, but an experienced agent should be able to counsel you on what to expect based on current market conditions and how your home fits into that market.
Ease: Which is easier? Many think selling a home at auction offers the easy way out. Yes — when you sell your home on the open market, you must stage it and be ready for showings at almost any moment. This isn’t necessarily easy, but it can pay off big in the long run through the maximization of your home’s sale price.
At CENTURY 21 Core Partners, we work with home sellers each and every day. If you’re making a decision between a traditional sale and auction of your home in York, PA, we can provide expert guidance and help you analyze the possibilities with each.