In a slow market, when conventional methods can take months if not years to sell a property, auctions can accomplish the same goal in as little as 5 minutes.  Real estate happens to be one of the fastest growing segments of the auction industry, and while auctions are not the ideal solution for everyone, they grab people’s attention, they create competition, urgency and excitement all while eliminating any sale contingencies and back and forth negotiations.

There are a variety of ways to perform Texas real estate auctions, here are a few:

1.  Live Single Property Auction

2. Live Multi-Property Auction

3.  Silent Bid Auction

4.  Phone Bid Auction

5.  Fax Bid Auction

The advantages to selling your house using an auction strategy are…

  • Auctions can capture buyers from all over the world using international marketing and online bidding strategies.
  • Property can be sold on the date of your choosing.
  • Property can be sold “as-is”.
  • The terms of the sale are already determined, eliminating back and forth negotiations.
  • Many times the property is sold prior to auction.
  • Property can be sold at true market value as determined by a group of buyers who have done their due diligence prior to auction as opposed to a single buyer offer and private negotiation.
  • All offers are received within a specific and pre-determined time period.
  • Property auctions gain more attention by buyers
  • Multi-property auctions held in a neutral location help homeowners share the costs of marketing.

The main disadvantage to selling your house using an auction strategy are…

  • Not getting the price you wanted or possibly hoped for.
  • Up-front marketing costs

In an auction, you can choose to set no reserve (an absolute auction), or  you can set a minimum reserve where if the bidding does not meet that minimum, you don’t have to sell.   Absolute auctions are proven to attract the most buyers and to achieve that same frenzy with a reserve auction, the lower your reserve, the more buyers you will attract.  However, you must be willing to take the high bid after it reaches your reserve, even if you only chose that reserve as a marketing tactic.

Some of the factors that make an auction successful are…

  • Unique Homes
  • Low or No Reserve Auctions
  • Famous Homes
  • Homes in hot and high appreciating areas