When a home auction is appropriate
By Jay MacDonald • Bankrate.com

Auctioning a house is not for every homeowner. But in some cases, it could work to the seller's advantage.

According to the National Association of Realtors Auction Web site, a property might be a good auction candidate in situations where:

The market is:

• Changing.
• Dull (too much product, but buyer interest is expressed).
• Emerging.
• Lacking enough of the property type (unique, lake front, etc.).
• A seller's market, where there is known high demand and room for a lot of competition.

The seller:

• Needs immediate cash.
• Has a partnership or marriage breakup.
• Is moving out of state.
• Wants to liquidate an estate.
• Is retiring.
• Is an auction-minded seller.
• Has a listing that is about to expire.
• Has already purchased another house.
• Knows the auction will bring a fair market price.
• Has financial problems.
• Has high carrying costs on the property.

The property:

• Has equity or 25 percent or more.
• Is unique, but there is enough buyer interest to encourage competition.
• Poses high carrying costs for the owner.
• Is vacant.
• Is difficult to appraise.

Jay MacDonald is a contributing editor based in Mississippi.