Home auctions, while quite common, still have a stigma attached to them – based on inaccurate myths and misinformation. As a seller, dismissing this option can be a mistake as auction sales are, at times, the best and only opportunity to maximize your profits in a real estate transaction. The hesitations I have encountered most often come from these misguided (unnecessary) fears:
Myth #1: “I Won’t Get Market Value”
This is certainly not a risk if your property is suited for the format of an auction. For example, if you are selling a seasonal property and it shows best in June, an auction allows you to choose the day when the property will be sold, leveraging and optimizing its peak value. Similarly, when there are multiple known buyers (for example, two neighbours) interested in the property, the competitive mechanism of an auction works to the seller’s advantage.