Tuesday, October 18, 2011

Real Estate Auctions - Part 1

Everybody is familiar with auctions for antiques, artwork, automobiles and other items. Real estate auctions are now also gaining in popularity every year.
Since the recent downturn in the economy and the increased number of properties in foreclosure, a misconception has arisen concerning auctions. We need to emphasize that auctions are not a last resort for distressed properties, but represent a viable option for all sellers. All types of homes can be sold at auction, from luxury properties to land and mobile homes.
Another misconception is that auctions bring property values down. Depending on the trend in a given neighborhood, auctions tend to close at market value or above. If the prices go down, then you may not expect to sell above the market price, but if the trend is positive, then you have a good chance of selling for more.
It is not unusual for a property sold at auction to sell for more than its appraised value. If a property is unique, the best way to sell it is by auction, because doing so will enable you to generate higher demand and let buyers compete openly in order to sell the house at the best price.

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