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7 Situations Well Suited for Real Estate Auctions

Manson Slik, August 30, 2012

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There are determining factors that can guide the decision-making process of how to sell a property, and it’s not always simple. Whether it’s quick cash, speedy sale, or maximizing profits, the decision to sell a house by real estate auction generally comes down to particular circumstances. There are certain situations that lend themselves well to this type of sale. For example:

  1. You are selling a relative’s home in another city
  2. A competitive mechanism would be an advantage, for example if two neighbours are eager to buy and are willing to compete
  3. You are in a hurry to sell for any number of reasons, including insurance cancellation, or a home vulnerable to break-ins or vandalism. With a traditional listing, the property could be on the market for days, weeks or even months, whereas an auction can be done in a single day
  4. There is a need for an objective third party to give two or more family members a fair shot at the home
  5. It is a unique or seasonable property that would benefit from the market’s attention at a particular time of year
  6. The home is in a high-demand area with lots of interest making it difficult to set a particular price
  7. There is a partnership of more than one heir and a fair price needs to be established so that one can buy another out

Before jumping in, it is important to talk about options with an expert in the field, and what will work best to increase closing price. With a clear understanding of your goals and motivations, they will help determine the approach that will enable you to achieve those objectives – whether that is through an auction or a traditional listing.

Written by Manson Slik

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