The majority of homes are purchased through an agent. Buying a house this way is highly competitive and the seller usually gets the better deal. However, by taking advantage of the home auction process, you can take control over pricing and only pay what a home is actually worth. Although there may be some drawbacks to purchasing a home at an auction, such as the inability to inspect properties, there are five significant benefits to using an auction instead of an agent.
1. Fair Price
Banks that sell properties at auction aren’t as interested in making a profit as they are recovering their losses. This means savvy buyers can get a great deal if they are patient enough to wait. Research is essential when it comes to housing auctions. Compare the prices of similar homes in the neighborhood and the costs to rehabilitate a home prior to bidding to ensure you don’t pay too much. Other more experienced investors will be bidding so this research is key to getting a fair price.
2. Leverage
Most homebuyers don’t have tens of thousands of dollars to buy homes with cash. This means those with a large amount of money on hand have a much better chance of winning the property they want at an auction. It’s unlikely that anyone other than an investor will be bidding on real estate at an auction. Instead of writing countless offers and counteroffers to compete with other home buyers working with agents, you can be confident you’ll get the home you want if you have enough cash on hand on the day of the auction.
3. No Need to Act Quickly
Homes are listed far in advance of an auction, giving potential buyers plenty of time to research the property and determine the cost of repairs. Unlike traditional sales, where buyers benefit from moving quickly, auction sale buyers are rewarded for taking their time. You won’t need to rush to buy an auction house. Take your time and ensure the cost to rehabilitate the house plus the auction price doesn’t exceed the potential value.
4. Variety
A typical auction has quite a few homes for sale. The best houses undoubtedly sell quickly and for the highest price. However, if you are willing to invest in repairs and have a contractor who will do the work for a reasonable price, you’ll have more options than other buyers. Instead of focusing on just one or two of the homes for sale, scan the list to find the best values and research them.
5. Speed
It can take months for a home purchased through an agent to get from the beginning stages to closing. On the other hand, buyers who purchase a Raleigh NC house for sale at an auction can start rehabbing it as soon as they pay the full auction price. Most auctions require at least 10% from the winning bidder at the conclusion of the auction. The rest is typically due within a month. If you are new to the investment community, you may be wondering, “Where can I find auctions near me?” The truth is, they are closer than you might think.
Carolina Auction and Realty has been connecting investors and owners for nearly 20 years. As an auctioneer that has successfully held more than 300 auctions, this provider has the experience to handle a property sale from start to finish. Most of these auctions have been held right in North Carolina, making Carolina Auction and Realty uniquely qualified to sell homes and broker deals within the state.