Real Estate Auctions Becoming More Common

Have you wondered how those real estate auctions work that we are increasingly seeing advertised? Earlier today I had an opportunity to hear a presentation by a company that sells real estate through auction right here in the Sacramento area. The type of real estate auctions you hear the most about are the bank-owned properties (also known as REOs) that are sold "ballroom" style in large venues like the one some weeks back at Cal Expo. This company does smaller scale auctions on the front lawn of the homes and they are not necessarily bank-owned. Some sellers frustrated by a slow market are opting to go the auction route. Some of the benefits: a quick sale, no need to make any repairs or give buyers concessions and a very high closing ratio. There are several kinds of auction: absolute (where the home gets sold to the highest bidder, reserve (where the seller decides on a minimum price they'll take, and subject to seller confirmation. Ideally a seller should have strong equity in their home and be motivated to sell this way. Even if your home is currently listed you can ask your Realtor if selling your home at auction would be a good option for you and they can help you find a reputable auctioneer. By the way, home auctions are coming to Folsom too. There is one scheduled for early December. It'll be interesting to see how it goes. I'll keep you posted.