Selling your home at auction in New Jersey is a growing practice throughout America because it offers an opportunity to sell your house fast, without paying real estate agent fees, and often with a profit. Despite its rising popularity, a lot still question, ‘Is auctioning your house a good idea?‘
As with all things, there can be downsides to auctioning your home rather than selling it through the traditional real estate sale process with an agent or to a real estate investment firm like Beacon Realty Investments.
In this article, We will dive into some of the dos and don’ts of auctioning your house in Delanco and surrounding areas and discuss the question “Is Auctioning Your House A Good Idea in Delanco New Jersey?”
Is Auctioning Your House A Good Idea in New Jersey?
If you are looking at auctioning off your New Jersey house, keep in mind that there are several preparations that you must make before the actual auction starts.
- In order to actually get your house auctioned off, you must first find an auctioneer in New Jersey. There are many auctioneering companies out there today, so do your research before picking one to represent your house. One place you can start is your local phone book, or a referral, or head over to the National Auctioneers Association website and do a quick search for auctioneers here in our area of New Jersey. Look for those with plenty of experience, and even try attending an auction or two, to get a feel for how they run things. Make sure to find out the fees that they charge for their services, as they can sometimes run quite high. In some instances, they may take up to ten percent of the house’s cost, greatly reducing the amount of profit that you will receive… sometimes much lower. Some even have additional fees excluding the commission, so you have to make sure you completely understand the terms and conditions of their services. Or heck, if you do not want to hire an auctioneer… you can do it yourself, this will allow you to retain more of the profit. A good auctioneer can really help drive the price of a house up with their skill… but you can run the auction yourself as long as you are clear about the rules of the auction with bidders, the starting bid price, whether they have to have cash and a deposit at the auction, etc.
- Decide which kind of auction you want to run – Absolute or Reserve? Once you feel that you have selected the house auctioneering company in New Jersey that is best for you, establish which kind of auction you want it to be, absolute or reserve. In absolute auctions, there is no minimum limit that your house must earn in order to be sold. This means that whatever the highest bid may be, is what you are going to get. Reserve auctions are those that have a minimum limit, and if it does not reach that limit, it does not get sold.Although it seems like a clear choice between the two, do not assume that reserve auctions are necessarily better. Sometimes if bidders are not willing to reach the limit, it will never be sold and you will be sitting on a house that you do not want. Also, auctions that are “no reserve” (or absolute) tend to attract more potential bidders to the auction looking for a great deal… and if one of them gets wrapped up in the bidding frenzy… that could mean the difference between selling the house that day and not selling it.Think carefully about making a decision, and try to decide what it is that you want more. Consider your urgency to sell, profit expectations, and the market conditions in New Jersey. If you want to sell your house as quickly as possible in New Jersey, then doing an absolute auction is the quicker option. However, if you have a specific price in mind and are willing to wait for the right offer, then perhaps a reserve auction would be more in your goals. A well-informed decision will increase the likelihood of a successful and satisfactory auction outcome.
- Don’t leave out any faults about the house from your auction description. A really important step in selling your house at auction here in New Jersey is to list all the problems that your property has. Full disclosure is essential to maintain transparency with potential buyers. Do not leave out any faults about your house, because if you do the buyers have a right to come after you through a legal repercussion for any flaws that you did not list out before the auction. Honesty is key to a successful and trouble-free transaction.
- Don’t go into an auction with fantasies of a bidding war erupting, leaving you with an enormous profit. Place a realistic price that you hope to earn, and do not be too disappointed if your house sells for less than you think it is worth. You may have an emotional attachment to the house that the people bidding on the house do not have. Auctioning your house in New Jersey may bring in less money than a real estate sale, but it is relatively quick and can spare you the heartache and stress of the more traditional approach.
- Don’t Overlook Market Conditions: Stay informed about the current real estate market conditions in New Jersey. Fluctuations in the market can impact buyer behavior and the overall success of your auction. Being aware of these conditions allows you to make strategic decisions, such as choosing between an absolute or reserve auction, based on the prevailing market dynamics.
- Don’t Underestimate the Importance of Timing: Timing is crucial in the auctioning process. Avoid scheduling your auction during periods of low market activity or when potential buyers may be less likely to participate. Consider the season, local events, and economic factors that could influence buyer interest and attendance.
- Don’t Neglect Proper Marketing: In the excitement of preparing for an auction, don’t overlook the importance of effective marketing. Ensure that your property is adequately promoted through various channels to reach a broad audience. Engage with professional marketing services or work closely with your chosen auctioneer to maximize visibility and interest.
- Don’t Disregard Legalities and Documentation: Ensure that all legalities and documentation are in order before the auction. Failing to comply with legal requirements can lead to complications and delays. Work closely with legal professionals to address any potential issues and ensure a smooth and legally sound transaction.
Why Are You Thinking About Auctioning Your New Jersey House Anyway?
You landed on this article for a reason… auctioning off your house has crossed your mind.
It may help you sell your house more quickly… so why not give it a go right?
Before you choose to auction off your local house… try another option first.
Our company, Beacon Realty Investments, buys New Jersey area houses. We are not looking to list your house… we are looking to actually buy it.
- In any condition
- Any part of town and even other parts of New Jersey
- ugly houses, pretty houses, houses in great shape, houses that need lots of repairs
- houses with lots of equity, and even houses with little or no equity
We will pay a fair price, we can close fast (in as little as 7 days), and you will not have to fix up the house at all.
If you would like to see what we can pay for your house BEFORE you decide to auction it off… reach out to us.
You can call us anytime at 609-531-4990 or just click the link below and fill out the form on the next page to start the process.
So, Is Auctioning Your House A Good Idea in New Jersey?… That is up to you to decide. But if you want to see if working with us makes more sense first before you jump into the “auction” world… submit your info below to get started today!
Is auctioning your house a good idea? Here is another great read that we found when writing this article on some more tips and questions you should ask yourself before you auction off your house.