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.
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