Any of you ever auction your home?

Discussion in 'Homesteading Questions' started by mammabooh, Jun 6, 2005.

  1. mammabooh

    mammabooh Metal melter Supporter

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    We are planning to sell our house and two acres within the next few weeks. A guy from the auction place is coming to talk to us tomorrow.

    Have any of you ever sold your place with an auction...if so, were you glad you did, or do you wish you would have listed it with a realtor or sold it yourselves?

    The reasons we're thinking of using an auction are that we don't like to mess around...it seems like an auction would be easy compared to other methods...no (or probably only one or two) showings, no offers and counter-offers...everyone interested would be here competiong with each other...all that kind of stuff. There would be a set date for the sale and, as long as it went for at least our reserve price, it would sell that day.

    Anyone have any insight for us?
     
  2. Kenneth in NC

    Kenneth in NC Well-Known Member

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    I have a friend that put there MIL house up for auction. It was a diaster. They ended up paying an auctioneer (they get paid coming and going) DID NOT sell the house. The attendees left trash all over the yard.

    Be very careful when dealing with auctioneers. Ask lot's of questions like "How will they advertise the auction?", Do they have any "friends" that may want to buy outright before the auction? Will they take less money up front and be paid balance after the sale? (This gives them more incentive to help you sell).

    Who cleans up the mess left by the "bidders"? Whom furnishes seats for bidders?


    Kenneth
     

  3. mammabooh

    mammabooh Metal melter Supporter

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    I don't think it would be long enough that anyone would need seats. It will just be the house and two acres...sold together.

    He'll be here tomorrow evening at 6:30 and we'll be asking LOTS of questions.

    Anyone else have any input?
     
  4. Kenneth in NC

    Kenneth in NC Well-Known Member

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    I don't think it would be long enough that anyone would need seats. It will just be the house and two acres...sold together.

    He'll be here tomorrow evening at 6:30 and we'll be asking LOTS of questions.


    Will prospective buyers want to "walk" the property? Whom produces the paperwork for the sale? When was the last survey? Do you have copies of the topograph map? Platt? Whom will verify the ability to pay of the bidders?

    Land auctions with homes I've been to allowed walking of property and looking thru house and buildings 3 times before actual auction. Are you prepared for this?



    Kenneth
     
  5. deb

    deb Well-Known Member

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    I used to cashier for a couple of auctioneers so I'm going to be blunt.

    I would auction off a house only as a last resort.

    People go to house auctions to find bargains. Why? Houses sold at auctions are sold AS IS and the buyer is assuming all the risks of buying the house under those conditions.

    Most houses don't have big bidding wars. Many houses don't meet the reserve price. Some auction sales fall through because the buyer can't get financing on an AS IS house or they have credit problems.

    If the sale falls through, you will have that person's deposit check, but you will have to pay off the auctioneer from that. Then you will have to pay for the water & septic testing, the house inspection, the survey and who knows what else you did before starting showing of the house. Any money left over will probably go to repairing the damage done during the auction. Damages? Generally an auctioneer will have 2-3 public showings of the house prior to the auction. At the showings you may have 2 to 50+ people arrive to see the house. They will walk on your garden, kill your grass, clog your toilet, dump cigarette butts and soda cans in the yard. The carpet may require cleaning, wood floors and trim, on and on. Whatever deposit money is leftover is yours to keep, but the house will still need to be sold. The auction attendance and damages may be worse or better than the viewings and it depends on the various factors...the weather, which football, baseball or basketball teams are playing that day, if there's another auction in nearby or if the date is too close to a major holiday or Mother's or Father's day.

    Then there's the auctioneer...I worked for reputable auctioneers, but there were other auctioneers in the area that were NOT reputable. Some auctioneers actually do rig the auction bidding, do reduce auction attendance by poor ad placement, do give bad advice, do use confusing contracts on purpose.

    So I would suggest that you:
    Ask for several references (house & non-house)
    Ask about bonding & insurance
    Have a lawyer look at the sales contract
    Get the auctioneer's license number then call:
    the Better Business Bureau & the state agency that governs auctioneers to see if this person has a history of problems.

    Once again, I would consider auctioning off a house only as a last resort. I would go with a realtor.
    HTH,

    Deb
    in Wi
     
  6. Lt. Wombat

    Lt. Wombat Well-Known Member

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    We sold our house in California via auction but it was just our realtor standing in the driveway with buyer’s realtors holding cell phones talking to the buyers. Sold in about 15 minutes for $665k. Appraised priced was $490k, we paid $128k 6 years earlier …. Gotta love California real estate!!
     
  7. mammabooh

    mammabooh Metal melter Supporter

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    Well, the auctioneer just left a while ago and we are NOT going to auction it off...in fact, I think we might just keep it! Well, we'd sell it if someone came along and offered a wad of cash, but we're not going to pursue it for now. Thanks for all of your input!