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Real Estate Auction |
Traditional Real
Estate Listing |
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The seller sets
the date and time for the sale of their property. |
The sale date cannot
be predicted. The buyer usually sets the closing
date. |
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The property receives
interest from many
buyers on a certain date and time. |
The property is "just
another listing" to a
realtor who has many properties. |
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Buyers bid
competitively to purchase
your property, which drives up the price. |
Buyers trying to
bargain can lower the
price of your property. |
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When buyers attend the
auction, they
have already decided to purchase your
property. |
Buyers are in most
cases "just looking"
and are in the early phases of purchase. |
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The auction encourages
buyer interest
by creating a sense of urgency. |
A reduction in price
is usually needed to
create a huge amount of interest. |
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The property will be
auctioned as-is,
with no warranties or contingencies. * |
The sale of property
could be cancelled
due to contingencies. * |
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No inspection is
required by the seller
for the property being sold. |
An inspection is
generally required and
could delay the sale of the property. |
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The seller pays
minimal closing costs
as required by law (preparation of the
deed, revenue stamps, and the seller's portion of taxes). |
The buyer normally
asks the seller to
pay for all of their closing costs, as well
as repairs on the property.
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A closing date is set
within 30 days of
the auction date. |
It can take months to
close on property
being sold in a traditional listing. |
* Using a
traditional real estate listing allows the buyer to set contingencies.
A contingency with financing permits the buyer to back out of the deal
if their loan is not approved. An inspection contingency
requires that the property be inspected and allows the buyer to
back out if the inspection is not satisfactory. A contingent
sale allows the buyer to back out of purchasing your property if
the buyer's own property is not sold within a certain amount of
time. You can avoid these contingencies by selling your
property using an auction. |
