[M04/S11] The Real Estate Auction Sales Model

The real estate auction sales model is not widely used in the United States. It may surprise you to learn that in many parts of the world, real estate is typically sold at auction.

It’s a system that has a number of benefits for the seller, including luring in buyers by low starting bids, a shortened marketing period, quicker sale, enhance competition among buyers, and also cut backs on the numerous private showings as is typical of home sales in the North America.

In North America, auctions are held primarily for distressed or foreclosure properties, and for this reason, selling your home via an auction could perhaps carry something of a stigma. Mainstream buyers are not accustomed to doing auctions, because that’s not a part of our real estate culture. For this reason, many would-be and well-qualified buyers are likely to avoid an auction, as they wouldn’t expect to find well-maintained, top quality homes at an auction.

Likewise, few sellers would think to sell their home via an auction, because auctions here are more associated with quickly disposing of damaged goods.  For this reason, most real estate auction web sites featuring North American real estate (auction.com, hubzu.com, and williamsauction.com) have few listings from owner-occupant home sellers.

However, given all the benefits of the auction model over the way real estate is presently sold here, should a savvy seller look into selling their home at auction?  It’s worth looking in to, but it’s likely that few sellers will go the auction route.  But by looking into the real estate auction sales model, sellers can learn a few things about how to sell their home quickly, and for the highest price possible.

The Savvy Seller Strategy is not an auction system, however it does incorporate some of the benefits of an auction model, to meet the primary objectives of an auction while maintaining true to the north American style of home marketing and sales.

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