Auction: Does buy Estate by Auction is back? What is happening in the market today why all these foreclosures?

With the housing market starting to slow up a bit in areas of the country. Sellers are using more tools at their disposal than to get a house sold in a timely fashion. While these methods vary greatly by region, nationally there has been a rise in the number of estate auctions seen.

Naturally, auctions are a new phenomenon. But to see them increasingly used a primary tool in selling estate is. 

The pitfalls are many in the auction and while it is certainly one of the quickest ways to liquidate a home, it is often wrought with a great deal of uncertainty. What if your home doesn’t sell for the price you were looking for? What if the auction fees take out such a hunk of the selling price that you see profit? These are questions to only ask yourself. But to brace for if you pursue the auction a selling method.

The uncertainty is compounded by the selling slow down that has precipitated these extra auctions. fewer homes are sold in a particular area. It becomes harder to peg down a selling price for your home on comparable listings. If there simply aren’t enough comparable listings to form a solid case. The true value of your home can be hard to determine. That can a fair amount of guessing to be done. When it comes down to an auction and estimating a final price.

Those sellers that hold speed a primary goal during their home sale. Will see the auctions perhaps the greatest way to perhaps sacrifice price. But gaining a great amount of speed. estate owners that have found their homes too expensive to maintain. The one who has quickly due to relocation. Or another life event might see the speed a welcome benefit of the process. Auctions eliminate the steps of a selling process that sellers see tedious or slow.

Auctioned homes also avoid the sorts of hurdles that conventionally-sold homes may face such financing contingencies. Auctions demand a cash payment, weeding out of the effort typically used to separate the financially-sound contract offer from one that may be tenable. 

Sellers need worry about the status of a prospective buyer’s current home, for example, and can instead feel assured that whatever day they decide for auction will be the final date of that property. That can be a great comfort and puts the pace of the transaction squarely under the control of the seller.

Of course, the drawbacks scare most away from the prospect of a estate auction. Sometimes, prospective home buyers will equate the words auction and discount, giving them the impression that the bidding should fall below the market price. If that is the case, bidders will simply stop bidding before the home reaches what they believe to be that market price, perhaps robbing the seller of a bit of the value of the home.

Additionally, fees on auctions can be steep and while avoid estate agent fees that would normally take place, they will typically pay a bigger to have the home auctioned off. The difference between those two percentage points could tell you a great deal about the validity of pursuing auction option. 

If the estate market in your area has slowed at any significant rate, auctions are perhaps something you’ll want to look in to, but only if you are prepared to sacrifice at least of your home’s value for the benefit of a quick home on your schedule.  

This is another original by Ernst Georges, co-owner of Yanex Real Estate Investing, LLC at http://www.yanexhome.com/. Are you looking for an experienced Brooklyn, Queens, Long New York Investors? With a based, experience, Ernst Georges and Partners work hard to serve home buyers and sellers for the Kings, Queens, Nassau and Suffolk Counties and surrounding areas. Below I put a list of books that may help you.