When the time comes to sell a home, a real estate auction may not be the first method that comes to mind. However, selling at an auction can help you get a lot more for your property than if you were to go through the traditional real estate process. There are a few main types of real estate auctions you should know about.
3 Types of Real Estate Auctions
1. Minimum Bid
Minimum bid auctions require that bidders start the bidding at a set price. If the highest bid received during the auction does not meet the minimum bid requirement, then the property is not sold. These auctions are usually used by long-term investors who don’t need to sell their home in a hurry, or by sellers who want to be sure that they won’t lose money.
Reserve auctions are used less frequently because the highest bid does not become the purchase price for the home. Instead, it then becomes an offer that is presented to the seller. The seller has up to 72 hours to accept or reject this offer. This option is typically favored by long-term investors.
Absolute auctions are used by individuals who want to sell their property quickly. In an absolute auction, there is no minimum required to start the bidding. Whoever places the highest bid “wins” the property. The sale is final — buyers cannot back out like they would with a standard real estate offer. Absolute auction properties tend to go quickly and attract many cash buyers.
If you’re interested in using a real estate auction to sell your home, let Greenway's do it! At Greenway’s Real Estate & Auction in Covington, VA, and White Sulphur Springs, WV, we have been selling properties for over 60 years and boast an 88% success rate and over $100 million in sales. Whether you’re buying or selling property in Virginia or West Virginia, rely on our top-notch customer service, including text updates at (540) 698-0883 and an app available in the app store. To learn more about what we can do for you, visit us online or call (540) 962-1155.