Traditional List vs. Auction: What's the Best Way to Sell Your Home?
When you're looking to sell your home or the home of a family member, you may figure that the only choice you have to go about this is a traditional listing; however, that's not necessarily the case. Traditional listings have been made popular due to the convenience factor of being able to market homes to a larger database of potential buyers with a Realtor working as the intermediary between buyer and seller. Although this process works very well for some, it may not be for everyone, which is where selling a home at auction may be the best fit. When it comes to traditional list vs. auction, what's the best way to sell your home? Let us help you make the right choice when it comes to your real estate listing.
Traditional List: What You Need to Know
The traditional way of marketing a property has been the standard for years and comes with its own set of advantages and drawbacks. A traditional listing includes some key criteria that differentiates itself from auction listings, which include:
A price set by the seller, which is typically negotiated down.
Listing marketed to a vast database of potential buyers.
Contingencies can be negotiated.
Repairs, etc can be negotiated between buyer and seller.
Sale date depends on the buyer.
Listing may be impacted by changes in the market.
Traditional listings have been known to be the way to go about real estate listings for years, and with a professional Realtor on your team to help you market your property, it may be the right choice for you. However, there are other ways to sell your home, besides traditional list, which may prove to be more beneficial.
Auction Real Estate: What You Need to Know
Another popular way to sell your home is through an auction, which vastly differs from a traditional listing. Although a Realtor can help you with both a traditional list or auction property, they are not able to sell a property via auction without an Auctioneer's license. Realtors who are not Auctioneers would need to refer to a licensed Auctioneer who would help them sell the property, and the Realtor may still get their commission. When it comes to selling a home via auction, the way an auction operates is unique. You can expect the following when listing your property at auction:
A price that's typically negotiated up and sold to the highest bidder.
The property is sold “as is, where is.”
Fewer negotiations can be made.
Listing is marketed to a more targeted buyer pool with participation from the seller with marketing efforts.
Timeline for an auction property is typically less than a traditional list.
Sale date is predetermined.
When you have an experienced professional handling all of the details, this type of home sale is highly beneficial for the seller. Not only are you able to potentially get more money for your home, you won't have to worry about making costly repairs, since the property is sold “as is” and you're able to sell faster than a traditional list property.
What's the Right Choice for You?
Traditional listings are easy and convenient ways to get your home on the market to a large pool of buyers; however, you may not get what you're asking for the property and you may have to spend more money making repairs to meet your buyers' demands. Auction listings may allow you to get more money for your home; however, it's not a guarantee and you'll need to be prepared that your buyer pool may be smaller than that of a traditional listing. In the end, the choice is up to you, but with an experienced Realtor and Auctioneer to help, either way you choose to list your property is made easier.