Thursday, March 04, 2021

Comparing Auctions to the Typical Selling of a Home

In today’s technological and unpredictable economy, selling real estate can be a frustrating and sometimes intimidating process. However, there are more options to sell your home than ever before. Of all the methodologies of selling one’s home, the single most attractive method, is via ZERO COMMISSIONS being paid by the seller or using a real estate agent!

An important and critical note:

An "iBuyer" is the catchall term for online real estate investors who seek to reduce transactional property costs via digital tools. The “i” is for instant and not Internet. Entities such as Zilow, Offerpad and Opendoor have a singular purpose – separate you from your equity and “steal” your home.

Plus, as opposed to selling via auction, you may not even have a sale because the iBuyer is going to send an inspector to evaluate the condition of the property. Should any problems be found that need repair, they will be itemized and presented to the seller for review. Trust the fact that EVERY possible issue will be included in their list. At this point, the client has the option to repair the items from the list or deduct the cost for the repairs from the offer made from the iBuyer. Once the final repairs are complete or price is adjusted, the home is sold, if and when the buyer decides to move forward. You have lost control.

Almost every iBuyer such as Zillow, OfferPad, Opendoor or similar operator, will offer at least 25% less than your asking price. Don’t give up your equity!

An auction is one of several choices available to sellers. The auction process offers many unique benefits to property owners who wish to maintain control of the selling process. When buyers search for property or homes for sale in Palm Springs, Cathedral City, Rancho Mirage, Indian Wells, La Quinta or Indio, they recognize’s property as a unique opportunity.

Many sellers of homes are turning to options like house auctions and “For Sale by Owner” – FSBO- as an alternative to using a real estate agent. While there are benefits to using these selling alternatives, owners must be aware of the costs and timeframe differences. The typical timeline for an auction is 30 days or less, ideal for owners who want a simple sales process. The FSBO sales process, as the name implies, allows owners to avoid large commission fees.

Whether you are just beginning to consider selling or you’ve already tried multiple methods, you are wise to explore the auction option. To see if the auction method gets you to where you want or need to be, please call us. We’ll consult with you regarding the process and provide a recommendation for your property. Complete the Free Property Auction Analysis today to so we can discuss whether an auction is right for you!

Our website contains numerous resources to assist you in this process. The “Auction vs. Typical” section will give you a side-by-side comparison of auction and a traditional sales approach.

In the FAQ section we’ve collected some of the most common questions sellers have asked us over the years and provided the answers for you.

Special Message for Realtors:
If you are a realtor assisting a current or prospective seller, we have several partnership programs available to allow you to offer a professional auction to your clients.

We are happy to help you determine if an auction is indeed the appropriate strategy for your seller.

Auction vs. Typical Sale

Auction Event - When selling a house via auction, the auction house takes care of all the promotion and marketing for your listing. Using the auction company’s network to market your property is a major advantage.

  • Singularly focused attention on your property alone.
  • Seller sets the day of the Auction.
  • You know when the property will be sold!
  • We employ aggressive target marketing including and not limited utilizing both onsite & directional signage, brochures, print ads in newspapers and magazines, promoted social media ads, Email campaigns & blasts, Internet press releases, direct mail, telemarketing, a dedicated web site, MLS with promoted listings, radio ads, pre-sale site inspections & more.
  • Seller sets the terms of the Auction.
  • Auction creates a sense of urgency aka “Auction Fever”.
  • No limit on upside potential.
  • Realizes the property’s true market value.
  • Eliminates guesswork in determining the asking price of the property.
  • Eliminates prolonged negotiations.
  • Buyers compete to own and all offers are presented at the auction.
  • Property usually is sold in 30 days maximum, thus eliminating expensive carrying costs.
  • Property sells contingency free.
  • Non-refundable earnest money is placed in escrow.

Typical Sale

  • Yours is one of many properties being offered for sale.
  • Property may remain on market for months or years.
  • Heavy reliance is placed on the Multiple Listing Service, minimal advertising.
  • Seller must negotiate all aspects of the sale.
  • Price reduction commonly used to create buyer interest and activity.
  • Upside potential limited by asking price.
  • Seller risks overpricing and thus, property sitting on the market; or underpricing and selling too cheap.
  • Negotiations can draw out over a long period AND buyers and their agents like to play “games” whether to lower the price or extend the closing.
  • Multiple offers at one time are rare.
  • Mortgage payments, taxes, insurance, etc. continue until property is sold.
  • Length of time to sell is unknown.
  • Normally contingent upon buyer’s financing, inspections, appraisal, etc.
  • Refundable earnest money, buyer can back out easily.
  • Almost every iBuyer such as Zillow, OfferPad, Opendoor etc, or similar operator, will offer at least 25% less than your asking price. Don’t give up your equity!
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