As economic uncertainty continues to grip the economy of western society, causing continued decreases in housing prices and an alarming spike in home foreclosures, many home sellers are seeking new and innovative ways to market their homes. What is the strategy of choice that many people are adopting? The answer is the home auction.
Recent statistics certainly support this claim. In fact, a popular real estate auction website called PropertyAuction.com noted a recent 48% increase over just nine months in home auctions that were posted on its website. In addition, entry into the auction markets is currently a growing trend among real estate companies such as Prudential and Coldwell Banker. As property transactions via auction continue to rise, these companies are now recognizing the potential of lucrative profits to be gained by involvement in the auction sector. There is every reason to believe that this trend will continue to grow, as auctions have now become very popular with first-time home buyers and investors who are looking for property at bargain prices.
A key difference between current and past property auction trends is that many of the properties now up for auction are not the result of foreclosures or other forms of financial hardship at all. Instead, auctions are now trending toward sellers who are simply looking to get their home sold as quickly as possible by getting prospective home buyers and investors to take a look at it. In short, the auction is now recognized as a highly efficient way to sell a home, and possibly to make a profit.
What are some of the clear advantages a property auction can provide over other, more traditional methods of selling a home?
- First, an auction allows a property to be seen by everyone on a specified time and date, providing it with a moment in the spotlight rather than having it buried in the traditional real estate listings for months.
- Second, bidding can be highly competitive, which may translate into a rapid increase in the selling price. Additionally, buyers will tend to jump more quickly at the home due to the sense of urgency that is created by the quick showing of it via the auction.
- Finally, auction properties tend to close rapidly without dragging on for extended periods of time.