by their emotional investment and drive the price higher than it should realistically go. Competition and ego often encourage emotions. Nobody wants to lose so everyone keeps bidding. People get caught up in the auction and end up paying more than the actual value of the property. The house is sold ‘as-is’ so no fixes and repairs are expected to be done by the seller. You can also leave anything that you don’t need, anything that you can’t be bothered with, and it will be sold with the house. Other than repairs, you also won’t have to worry about city inspections; that’s the buyer’s problem. There are hardly any contingencies and the deposit is often high. The buyer will not have a way out of the contract and he will have to deposit at least 10% of the contract price or $2,500 immediately after the auction. If the property isn’t closed on in 30 days or less, the buyer forfeits the deposit, which will ensure that only serious buyers apply for the auction.
CONS
The biggest downside of an auction is that it is unpredictable. The outcome is uncertain, and you can be left with much less than you were hoping for. This can be mitigated by setting a reserve price, but remains a problem. You must hire a skilled professional, and skills come with a price tag. There is no guarantee that you will successfully sell a property at auction. In fact, only 75% of property auction listings achieve a successful sale.
Regardless of whether your property sells or not, you must cover
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