Real estate sale by auction

This discussion is about one of those real auctions, not a bank's foreclosure auction. There's a big difference. More people are turning to auction houses to unload property because they want to get it done fast. They are sellers whose listings haven't moved in the sluggish real estate market we're in right now. Some have already bought another home and have to go. Others suffered a death in the family or were affected by a divorce. There are many reasons for speedy results.

The obvious number one benefit is the time line. A typical sale takes about 10 weeks. There's a six-week marketing period, then the sale, followed by a closing in 30 days. Done. And it's a cash sale, because auctions normally don't get into financing. Another major benefit for the buyer. Regarding the cost, auction commissions are about the same as in a conventional real estate transaction.

And the price you can expect? This is the ultimate path to discover what your house is worth at a given time. That's it. Nobody else's opinion or crystal ball counts. You have two options on pricing, though. If it's an absolute auction, you have to take whatever the highest bidder comes up with. Whereas subject to reserve allows you to set a minimum price.

Auction gives you another option to sell a home.