than repairs, you also won’t have to worry about inspections; that’s the buyer’s problem.
• There are hardly any contingencies and the deposit is often high. The buyer will have very little 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. • It's not uncommon that 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 if it's too high it may not sell. • 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, 1 out of 4 properties auctioned do not sell. • Regardless of whether your property sells or not, you must cover the costs of marketing and the auction.
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