Auctions vs. Traditional Sales: Which Is Right for You?

Auctions vs. Traditional Sales: Which Is Right for You?

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When it comes to selling real estate, you have options, and one of the key decisions you'll need to make is whether to go with an auction or a traditional sale. In this blog post, we'll explore the differences between these two methods and help you determine which one is right for you.

Auctions and traditional sales each have advantages and may be better suited to different situations. Understanding these differences is crucial when deciding how to sell your property.

With auctions, you can often achieve a faster sale, usually 30 days, and create a greater sense of urgency among buyers. The competitive nature of auctions can lead to higher prices, and sellers have more control over the terms of the sale. Typical terms are cash sale, 10% deposit upon signing a purchase agreement, as is, where is condition, 30–45-day closing, and good title is guaranteed.

Online real estate auctions usually have a low starting bid, and the competition drives the price upward to its market value.

Traditional sales generally choose an asking price using an Appraisal or Broker’s Price Opinion. This price is usually reduced as time goes on without offers. So, you can see that auctions and listings are opposites. One prices the property high and reduces until a sale is made; the other starts low, and the competition increases the price.

On the other hand, traditional sales may provide more time for negotiations and allow for contingencies. If you do not have any urgency to sell and do not want bidders to compete for your property, then maybe you should choose the traditional method.

We'll delve deeper into the pros and cons of both methods and guide you in choosing the right approach based on your specific objectives and circumstances. Knowing the differences can help you make informed decisions in the real estate market, whether you're a seller or a buyer.

Stay tuned for more valuable insights on this topic and other real estate auction process aspects.

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