Debunking Auction Myths

Manson Slik,

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.

7 Situations Well Suited for Real Estate Auctions

Manson Slik,

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