Unlike a traditional sale — where you advertise, hold open houses, put out flyers or email campaigns and wait for offers — Auctioning real estate doesn’t involve that open-end waiting game. At auctions, the traditional marketing methods are employed, but the difference is that the process is accelerated. Very extensive marketing is done in a short time and then, on a specific date the buyers must decide at that time — no more waiting for tomorrow to go and look at other choices.

The sellers can be protected during the process as well. The auction company works with the sellers before the auction, during the listing period, and there are several ways that the property can be sold. The sellers can set a reserve price auction where they set a price, and if a bid doesn’t come in at that price, the property is not sold. At a minimum bid auction, the auctioneer will announce to the buyers that there will be a minimum price they need to start their bids at. And, finally, the third way is an absolute auction where the property is sold to the last and highest bidder, regardless of what the price is.

In an auction sale, there are no contingencies – not on financing, not on the home inspections, not even appraisals and not on getting family members to approve the home. None. An auction does require a larger deposit and if the buyer don’t close they forfeit their deposit. This brings out the serious buyers. But, it is important to know that auctions force the buyers to complete their diligence before the auctions. Financing: if required, needs to be pre-qualified with a commitment from the institution before bids are made. Bring a home inspector out before the auction date.

The auction company will work with the buyers to answer all their questions, and satisfy all their requirements before they close, and before they make their offer.