What Are the Pros and Cons of Property Auctions
Are you considering buying a property? What about selling a home or business? If so, you might initially consider going the traditional route of hiring a realtor, or you might even try to sell it yourself. Whatever route you choose, make sure you’ve considered all options before making any decisions. One alternative growing in popularity is property auctions. But how exactly do these property auctions work? And what are the pros and the cons? Follow along with Joshua Kodner to learn more!
Here’s what you need to know.
What You Should Know
There are a few basic elements to know about when looking to learn more about how property auctions work since they work differently than listing your home for market or hiring a realtor. The process is much quicker and requires registering prior to the auction—this is done to ensure transparency. Once registering, you can view the property online or if you are close enough to the property, visit it in person. Once the auction begins, potential buyers begin to bid, with the highest bid being awarded the property.
There is usually a deposit required once the auction is over. There are two basic types of property auctions. The first is an absolute auction, in which any amount can be offered as a bid. The other is minimum bid auctions, which require a minimum starting bid that is set by the seller. Property auctions certainly have their perks, but also have their cons, too.
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1. Safe and Transparent
One big benefit of property auctions is that they’re safe. Many auction houses or websites require verification of identity, as well as a credit card and a deposit. This is done to ensure that your home or property is sold to someone who can actually pay for it. No need to worry whether or not they can foot the bill—that’s all taken care of with an auction house or auction website. Talk about peace of mind!
2. A Good Deal
Another perk to property auctions is the potential for a good deal on a home. Auctions happen quickly, and depending on the type of auction, they can be quite a steal. Absolute auctions, for one, don’t require a minimum bid. This allows you to put your own price, no matter how low or how high. If there aren’t a lot of bidders, this can be a very good situation for you and your wallet.
3. Short, Sweet, To The Point
Property auctions go fast. The auction itself is set for a specific time period, in which afterward there is a clear winner. Thanks to the bidder verification, many sellers sell their properties and finish the entire process within a month. For anyone unwilling to wait months with a home on the market, property auctions make a good argument.
Are you looking to sell at an auction house? Joshua Kodner is a top auction house in Fort Lauderdale and Dania Beach.
1. No Financing
Many of these auction houses and auction websites don’t offer any type of financing. That means that buyers and bidders must have the money upfront, or risk losing the property to the next highest bid. If you think you may need a loan or financing, buying a house at auction may not be for you.
2. No Time to Inspect
Since auctions go so fast—especially online—it’s hard to know if you’re buying a good property. If the auction is online, you only have photos to look at before purchasing it. This can be risky, as homes and properties can have a lot of issues such as foundation cracks, poor plumbing, or even dangerously built. You can always get the property inspected after purchasing, of course, but keep in mind the potential for hiccups and issues along the way.
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Choosing the Right Auction House
Selling your property at auction should be quick, painless, and satisfying. Auction houses like Joshua Kodner have spent decades perfecting the auction process. With a talented and expertly trained staff as well as years of family experience, you can be assured that Joshua Kodner will sell or help you buy a property in no time. For more information, or to schedule a consultation, please contact us today.
Related Post: 3 Types of Online Bidding For Property Auctions