However, 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 Boston Wholesale Property.
In this article we’ll dive into some of the dos and don’ts of auctioning your house in Boston and surrounding areas and discuss the question of “Is Auctioning Your House A Good Idea in Boston MA?”
Is Auctioning Your House A Good Idea in Boston?
If you’re looking at auctioning off your Boston 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 Boston. There are many auction 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, a referral, or head over to the National Auctioneers Association website and do a quick search for auctioneers here in our area of MA. Look for those with plenty of experience and even attend an auction or two to get a feel for how they run things. Make sure to find out their fees for their services, as they can sometimes run quite high. In some instances they may take up to ten percent of the house cost, greatly reducing the amount of profit that you will receive. If you don’t want to hire an auctioneer, you can do it yourself. 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’re 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’ve selected the house auction company in Boston that’s 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 it will sell for the highest bid, whatever that may be. Reserve auctions are those that have a minimum limit. If the auction doesn’t reach that limit, the house doesn’t get sold. Although it seems like a clear choice between the two, don’t assume that reserve auctions are necessarily better. Sometimes if bidders aren’t willing to reach the limit, it will never be sold and you’ll be sitting on a house that you don’t want. Also, auctions that are “no reserve” (or absolute) tend to attract more potential bidders to the auction looking for a great deal. If you want to sell your house as quickly as possible in Boston, then doing an absolute auction is the quicker option. If not, then perhaps a reserve auction would be more in line your goals.
- Don’t leave out any faults about the house from your auction description. An important step in selling your house at auction in Boston is to list all the problems that your property has. Don’t leave out any faults. Buyers have a right to come after you for any flaws that you didn’t list out before the auction.
- 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 don’t be too disappointed if your house sells for less than you think it’s worth. You may have an emotional attachment to the house that the people bidding on the house don’t have. Auctioning your house in Boston 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.
Why Are You Thinking About Auctioning Your Boston House Anyway?
You landed on this article for a reason. Auctioning off your house has crossed your mind. Before you choose to auction off your local house, try another option first.
Our company, Boston Wholesale Property, buys Boston area houses. We’re not looking to list your house. Instead, we’re looking to actually buy it.
- In any condition
- Any part of town and even other parts of MA
- Houses with lots of equity and even houses with little or no equity
We’ll pay a fair price, we can close in as little as 7 days, and you won’t have to fix up the house at all. If you’d like to see what we can pay for your house BEFORE you decide to auction, reach out to us. You can call us anytime at (617) 752-1768 or just click the link below and fill out the form on the next page to start the process.
Is Auctioning Your House A Good Idea in Boston? It’s up to you to decide. If you want to see if working with us makes more sense before you jump into the “auction” world, submit your info below to get started today!
Here’s 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.