GTA<\/a>.<\/span><\/p>\n[\/et_pb_text][et_pb_divider show_divider=”off” disabled_on=”off|off|off” admin_label=”Divider” _builder_version=”4.18.0″ _module_preset=”default” height=”5px” height_tablet=”” height_phone=”1px” height_last_edited=”on|phone” custom_padding=”||0px|||” locked=”off” global_colors_info=”{}”] [\/et_pb_divider][wahi_wahiButton url=”\/ca\/en\/real-estate\/sign-up” button_font_color=”#000000″ button_color=”#EB7161″ circle_color=”#000000″ border_color=”RGBA(255,255,255,0)” focus_color=”#000000″ is_white_hover_text=”on” _builder_version=”4.18.0″ _module_preset=”default” locked=”off” global_colors_info=”{}”]<\/p>\n
GET STARTED<\/p>\n
[\/wahi_wahiButton][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||24px||false|false” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”23px||38px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n
The Cons of Selling a Home at Auction<\/b><\/h3>\n
The following is a list of cons that may come with selling a home at auction:\u00a0<\/p>\n
\u00a0–<\/span><\/p>\n\n- <\/span>There is no guarantee of a sale: One drawback of selling a home at auction is that a sale is not guaranteed. For example, if no one places a bid or if the highest bid does not meet the reserve price (in the case of a with reserve auction), then the sale will not go through.\u00a0<\/li>\n
- <\/span>A smaller pool of buyers: Fewer people buy homes at auctions than they do the traditional way, which means your buyer pool instantly narrows when you sell a house at auction. Beyond that, some auction companies have restrictions on bidders (for example, financed purchases are not allowed), which can further reduce the buyer pool and lower your chances of a sale.<\/li>\n<\/ul>\n
–<\/span><\/p>\nSelling a House Through a Traditional Realtor<\/b><\/h3>\n
One alternative to selling your home at auction is to sell it through a traditional REALTOR\u00ae. This is the most common way of selling a home, and it involves listing your home on the market and working with an experienced REALTOR\u00ae.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\nWhen you work with a REALTOR\u00ae, you have a seasoned real estate expert at your fingertips. They can save you time and money by helping you navigate the entire home-selling process from start to finish. For example, they will conduct a comparative market analysis on your behalf to help you determine the right listing price, they can reach out to their extensive network to find a pool of qualified buyers, and they can recommend a range of reputable professionals to help with your home sale, such as a home inspector, home appraiser, contractor, or real estate attorney.\u00a0<\/p>\n
–<\/span><\/p>\nOn the other hand, the buyer might have more power than the seller in a traditional real estate sale, which is generally not the case in auctions (remember how homes sold at auction are sold as is without contingencies?) In a buyer\u2019s market, homebuyers have the upper hand and can set the terms of the sale, including the closing date, purchase price, and contingencies. Not only could you end up with a worse deal but the selling process could be drawn out due to a long period of negotiations. However, if you\u2019re selling your home in a seller\u2019s market, there might still be a negotiation phase, but you would have the upper hand. There would likely be more competition, which could lead to a bidding war that ends in a much higher purchase price than if you\u2019d sold your home at auction.<\/p>\n
–<\/span><\/p>\nKey Considerations When Deciding Between Selling a Home at Auction or Using a Realtor<\/b><\/h3>\n
To decide whether selling a home at auction or using a REALTOR\u00ae is right for you, consider the following three factors.\u00a0<\/p>\n
–<\/span><\/p>\nCost<\/b><\/h3>\n
Cost is one of the top factors that must be considered when choosing how to sell your home. The cost of selling your home through an auction versus selling it with a REALTOR\u00ae varies. In an auction, the real estate auction company will likely demand a commission from the seller. The commission rates typically range between 6% and 10% of the sale price, which is far higher than the 2.5% commission you’re likely to pay when selling your house through a traditional REALTOR\u00ae. That said, real estate auction commission rates can be negotiated. For example, the seller could negotiate with the auctioneer to raise the buyer\u2019s premium in exchange for lowering the commission or include other fees in the commission price, like marketing and advertising.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\nBeyond the commission fees owed by sellers, the other financial aspect of selling a home using either method is the purchase price of the property. In some cases, selling a home at auction could garner a higher purchase price than selling a home with a REALTOR\u00ae. But in other cases, it might be the opposite. In part, it depends on the condition of the home (fixer-uppers might be better off sold at auction), as well as the current real estate market (in a seller\u2019s market, a seller may get more for a home if they sell it with a REALTOR\u00ae).<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.24.2″ _module_preset=”default” min_height=”35px” custom_padding=”0px||0px||true|false” da_disable_devices=”off|off|off” global_module=”1002″ saved_tabs=”all” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”54px||3px|||” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n
Speed<\/b><\/h3>\n
A second factor to consider is speed. Timelines for selling a home at auction and selling a home using a REALTOR\u00ae usually differ. Generally, selling a home at auction is typically quicker, taking just 30 days or less. The actual auction can take under an hour, and since properties are sold as is without conditions, there is no negotiation phase to drag out the home sale.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\nIn contrast, selling a home through a traditional REALTOR\u00ae usually takes a minimum of 45 days, and that\u2019s in a seller\u2019s market. The process can take much longer in a buyer\u2019s market when it\u2019s not uncommon for properties to sit on the market for months on end. Even if there is increased buyer demand, selling a home the traditional way usually involves negotiations, which extends the selling process. For example, going back and forth with counteroffers or adding financing, home inspection, or home sale contingencies, can make the process much longer.<\/p>\n
–<\/span><\/p>\nControl<\/b><\/h3>\n
One final consideration when deciding between selling a home at auction versus using a REALTOR\u00ae is control. Selling a home at a real estate auction tends to give the buyer a significant amount of control over the sale. As mentioned, auction homes are sold as is, which means the sale of the property is not conditional on a home inspection, buyer financing, or any other factor. This increased control is a major perk for many sellers.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\nOn the other hand, when selling through a traditional REALTOR\u00ae, the buyer has the power to negotiate. Though the seller is not required to give in to the buyer\u2019s demands, they still have less control over the sale, especially if they want the sale to go through. For example, to successfully sell their home (particularly if it\u2019s a buyer\u2019s market), they may have to agree to unfavourable terms like completing certain repairs on the home prior to the date of possession or a home sale contingency.<\/p>\n
–<\/span><\/p>\nThe Two-Thirds Rule for Real Estate Auctions<\/h2>\n
One last tip if you\u2019re stuck between selling a home at auction or selling traditionally is to consider the two-thirds rule. This rule works as follows: If two out of three of the elements that influence home sales lean toward selling your home at auction, a real estate auction is likely the best course of action. However, if only one element points in that direction, selling a home the traditional way might be the way to go. The three elements to consider when using the two-thirds rule are as follows:\u00a0<\/p>\n
\u00a0–<\/span><\/p>\n\n- <\/span>The real estate market: Selling a home at auction can be a great option in a seller\u2019s market when demand is high and inventory is low. Alternatively, auctions can also be well-suited to cooling markets in transition or if the home is unique enough to stand out from the crowd.\u00a0\u00a0<\/li>\n
- <\/span>The seller\u2019s needs: The seller\u2019s needs can also influence whether selling a home at auction is the right decision. For example, if speed and control are the top priorities, auctioning off your home could be the best choice. Auctions are ideal for sellers who want to sell quickly or want to get the best possible price for their home within a specified time frame.\u00a0<\/li>\n
- <\/span>The condition of the home: The condition of the home is the final factor that can determine whether you\u2019re better off selling your home at auction or through a REALTOR\u00ae. Homes that are fixer-uppers, difficult to appraise, unique, or have been empty for a long time may be well-suited to a real estate auction.<\/li>\n<\/ul>\n
–<\/span><\/p>\nThe Bottom Line<\/b><\/h3>\n
The bottom line is this: There are times when selling a home at auction makes more sense, and there are times when selling a home traditionally is the best move. Generally speaking, real estate auctions are best during markets that are in transition, for properties that have unique or difficult-to-value features, or that are attractive to a specific type of buyer, and for sellers who want an accelerated selling process, are looking to liquidate their property quickly, do not want to make any repairs, have already purchased a new home, or are not interested in paying commission to a REALTOR\u00ae.\u00a0<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#ffffff” custom_padding=”33px||3px||false|false” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||30px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text module_class=”BaseTitle” _builder_version=”4.18.0″ _module_preset=”default” header_2_font=”||||||||” header_2_font_size=”2rem” header_2_line_height=”2.5rem” header_2_font_size_tablet=”2rem” header_2_font_size_phone=”1.5rem” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”2.5rem” header_2_line_height_phone=”2.25rem” header_2_line_height_last_edited=”on|desktop” global_colors_info=”{}”]<\/p>\n
Frequently Asked Questions<\/h2>\n
[\/et_pb_text][et_pb_toggle title=”Will putting a house up for auction affect its price?” closed_toggle_background_color=”#ffffff” icon_color=”#BC4E40″ toggle_icon=”C||divi||400″ use_icon_font_size=”on” icon_font_size=”32px” open_icon_color=”#BC4E40″ open_toggle_icon=”B||divi||400″ open_use_icon_font_size=”on” open_icon_font_size=”32px” _builder_version=”4.18.0″ _module_preset=”default” title_text_color=”#000000″ title_level=”h2″ title_font=”|700|||||||” body_text_color=”#686e6e” body_line_height=”2em” custom_margin=”||3px|||” custom_padding=”||17px|||” border_width_all=”0px” border_width_top=”1px” global_colors_info=”{}”]<\/p>\n
Putting a house up for auction can affect its price. One of the main benefits of selling a home through auction is that it might sell for more than what it would have sold for traditionally. Typically, homes sold at auction are more likely to sell at market value. That said, sellers will need to account for other costs that come with selling a home through auction, such as commission and advertising fees.\u00a0<\/span><\/p>\n[\/et_pb_toggle][et_pb_toggle title=”What happens after a house has been auctioned?” closed_toggle_background_color=”#ffffff” icon_color=”#BC4E40″ toggle_icon=”C||divi||400″ use_icon_font_size=”on” icon_font_size=”32px” open_icon_color=”#BC4E40″ open_toggle_icon=”B||divi||400″ open_use_icon_font_size=”on” open_icon_font_size=”32px” _builder_version=”4.18.0″ _module_preset=”default” title_text_color=”#000000″ title_level=”h2″ title_font=”|700|||||||” body_text_color=”#686e6e” body_line_height=”2em” custom_margin=”||3px|||” custom_padding=”||17px|||” border_width_all=”0px” border_width_top=”1px” global_colors_info=”{}”]<\/p>\n
After a winner is declared, the auction company will collect the deposit from the buyer and send the necessary paperwork to the buyer and seller. Both parties will make the deal official by signing the purchase agreement. Please note that it is advisable to have a real estate attorney review the terms of the agreement before signing.<\/span><\/p>\n[\/et_pb_toggle][et_pb_toggle title=”Should a REALTOR\u00ae be involved in a house auction process? What are the fees?” closed_toggle_background_color=”#ffffff” icon_color=”#BC4E40″ toggle_icon=”C||divi||400″ use_icon_font_size=”on” icon_font_size=”32px” open_icon_color=”#BC4E40″ open_toggle_icon=”B||divi||400″ open_use_icon_font_size=”on” open_icon_font_size=”32px” _builder_version=”4.18.0″ _module_preset=”default” title_text_color=”#000000″ title_level=”h2″ title_font=”|700|||||||” body_text_color=”#686e6e” body_line_height=”2em” custom_margin=”||3px|||” custom_padding=”||17px|||” border_width_all=”0px” border_width_top=”1px” global_colors_info=”{}”]<\/p>\n
Sellers can choose to work with a REALTOR\u00ae when selling their home at auction. However, a REALTOR\u00ae may not be interested unless they will be compensated for their time. Therefore, the seller might need to agree to a commission rate in exchange for the REALTOR\u00ae\u2019s help. Commission fees vary and can often be negotiated, so be sure to ask about fees before hiring a REALTOR\u00ae.\u00a0<\/span><\/p>\n[\/et_pb_toggle][et_pb_toggle title=”Can you auction your house online?” closed_toggle_background_color=”#ffffff” icon_color=”#BC4E40″ toggle_icon=”C||divi||400″ use_icon_font_size=”on” icon_font_size=”32px” open_icon_color=”#BC4E40″ open_toggle_icon=”B||divi||400″ open_use_icon_font_size=”on” open_icon_font_size=”32px” _builder_version=”4.18.0″ _module_preset=”default” title_text_color=”#000000″ title_level=”h2″ title_font=”|700|||||||” body_text_color=”#686e6e” body_line_height=”2em” custom_margin=”||3px|||” custom_padding=”||17px|||” border_width_all=”0px” border_width_top=”1px” global_colors_info=”{}”]<\/p>\n
Yes, online auctions have dramatically risen in popularity. While in-person home auctions still exist, many real estate auctions are now conducted online. If you\u2019re interested in an online auction for your home, find a real estate auction company in your area that specializes in online auctions.\u00a0<\/span><\/p>\nOn the other hand, there are many reasons that REALTORS\u00ae and sellers continue to favour open houses. Open houses offer a more relaxed environment for prospective buyers to tour the home. They also generate foot traffic, and the heavier the traffic, the more likely it is that a serious buyer will schedule a follow-up visit.<\/p>\n
[\/et_pb_toggle][et_pb_toggle title=”What types of houses sell the best at auctions?” closed_toggle_background_color=”#ffffff” icon_color=”#BC4E40″ toggle_icon=”C||divi||400″ use_icon_font_size=”on” icon_font_size=”32px” open_icon_color=”#BC4E40″ open_toggle_icon=”B||divi||400″ open_use_icon_font_size=”on” open_icon_font_size=”32px” _builder_version=”4.18.0″ _module_preset=”default” title_text_color=”#000000″ title_level=”h2″ title_font=”|700|||||||” body_text_color=”#686e6e” body_line_height=”2em” custom_margin=”||3px|||” custom_padding=”||17px|||” border_width_all=”0px” border_width_top=”1px” border_width_bottom=”1px” global_colors_info=”{}”]<\/p>\n
Many types of houses are sold at auctions. However, some of the most common are fixer-uppers (those that have been neglected) and homes that have been foreclosed on.<\/span><\/p>\n[\/et_pb_toggle][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”48px||18px||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”Emily Southey” image=”http:\/\/wp-alb-dev-1973522971.ca-central-1.elb.amazonaws.com\/wp-content\/uploads\/2022\/11\/Screen-Shot-2022-11-02-at-7.46.57-PM.png” icon_placement=”left” _builder_version=”4.18.0″ _module_preset=”default” header_font_size=”24px” header_line_height=”1.2em” body_text_color=”#686E6E” body_font_size=”18px” body_line_height=”1.2em” width=”550px” max_width=”550px” module_alignment=”left” animation=”off” custom_css_blurb_image=”width:64px;” global_colors_info=”{}”]<\/p>\n
Wahi Writer<\/p>\n
[\/et_pb_blurb][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”0px||0px||true|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_socialsharing module_class=”wahi_socialsharing_2″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/wahi_socialsharing][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”60px||3px||false|false” global_module=”2115″ saved_tabs=”all” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_2_font_size=”2.63rem” header_2_line_height=”2.5rem” header_2_font_size_tablet=”” header_2_font_size_phone=”2rem” header_2_font_size_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n
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