Selling your home at auction in Southwest Michigan is a growing practice throughout America, because it offers an opportunity to sell your house fast, without paying real estate agent fees, and often with a profit.
However, as with all things, there can be downsides to auctioning your home rather than selling it through the traditional real estate sale process with an agent or to a real estate investment firm like I Buy SW MI.
In this article I’ll dive into some of the do’s and dont’s of auctioning your house in Southwest Michigan and surrounding areas and discuss the question of “Is Auctioning Your House A Good Idea in Southwest Michigan MI?”
Is Auctioning Your House A Good Idea in Southwest Michigan?
If you’re looking at auctioning off your Southwest Michigan house, keep in mind that there are several preparations that you must make before the actual auction starts.
- In order to actually get your house auctioned off, you must first find an auctioneer in Southwest Michigan.There are many auctioneering companies out there today, so do your research before picking one to represent your house. One place you can start is your local phone book, a referral, or head over to the National Auctioneers Association website and do a quick search for auctioneers here in our area of MI.Look for those with plenty of experience, and even try attending an auction or two, just to get a feel for how they run things. Make sure to find out their fees that they charge for their services, as they can sometimes run quite high. In some instances they may take up to ten percent of the houses cost, greatly reducing the amount of profit that you will receive… sometimes much lower.Or heck, if you don’t want to hire an auctioneer… you can do it yourself. A good auctioneer can really help drive the price of a house up with their skill… but you can run the auction yourself as long as you’re clear about the rules of the auction with bidders, the starting bid price, whether they have to have cash and a deposit at the auction, etc.
- Decide which kind of auction you want to run – Absolute or Reserve?Once you feel that you’ve selected the house auctioneering company in Southwest Michigan that’s best for you, establish which kind of auction you want it to be, absolute or reserve.In absolute auctions there is no minimum limit that your house must earn in order to be sold. This means that whatever the highest bid may be, is what you’re going to get.Reserve auctions are those that have a minimum limit, and if it doesn’t reach that limit, it doesn’t get sold.
Although it seems like a clear choice between the two, don’t assume that reserve auctions are necessarily better. Sometimes if bidders aren’t willing to reach the limit, it will never be sold and you’ll be sitting on a house that you don’t want. Also, auctions that are “no reserve” (or absolute) tend to attract more potential bidders to the auction looking for a great deal… and if one of them gets wrapped up in the bidding frenzie… that could mean the difference between selling the house that day and not selling it.
Think carefully about making a decision, and try to decide what it is that you want more. If you want to sell your house as quickly as possible in Southwest Michigan, then doing an absolute auction is the quicker option. If not, then perhaps a reserve auction would be more in your goals.
- Don’t leave out any faults about the house from your auction description A crucial step in successfully selling your house at auction in Southwest Michigan involves creating a comprehensive and transparent list of all existing issues related to your property. It is imperative not to omit any faults or defects concerning your house, as this could lead to potential legal ramifications. Buyers have the right to seek recourse if they discover undisclosed flaws after the auction has taken place. By being forthright and detailing all known problems beforehand, you not only protect yourself legally but also foster trust and transparency with potential buyers. This approach will contribute to a smoother auction process and help you avoid any unpleasant surprises or disputes after the sale has been completed.
- Don’t go into an auction with fantasies of a bidding war erupting, leaving you with an enormous profit.
When auctioning your house in Southwest Michigan, it’s important to set a realistic asking price that reflects the property’s true market value. Keep in mind that you might have an emotional attachment to the house that potential bidders do not share, which could influence your perception of its worth. Be prepared for the possibility that your house may sell for less than your initial expectations, and try not to let disappointment overshadow the benefits of a successful sale.
While an auction might yield a lower sale price compared to a traditional real estate transaction, it offers several advantages. Auctions are generally faster, allowing you to expedite the selling process and avoid the drawn-out, often stressful experience of a conventional property sale. By opting for an auction in Southwest Michigan, you can save yourself time, emotional strain, and potentially even financial burdens associated with a more traditional approach to selling your home.
Why Are You Thinking About Auctioning Your Southwest Michigan House Anyway?
There’s no denying that the prospect of auctioning off your home has captured your attention and brought you to this article. The idea of accelerating the sales process and potentially securing a quick deal is undoubtedly tempting. However, before committing to the auction route, it’s crucial to explore alternative solutions to achieve your desired outcome. One such option is our company, I Buy SW MI, which specializes in purchasing properties in the Southwest Michigan region. Unlike traditional real estate agents, our focus is not on listing your home but rather on becoming the direct buyer, providing you with a seamless and efficient transaction experience.
- In any condition
- Any part of town and even other parts of MI
- ugly houses, pretty houses, houses in great shape, houses that need lots of repairs
- houses with lots of equity and even houses with little or no equity
At I Buy SW MI, we pride ourselves on offering fair prices, swift closings (in as little as 7 days), and eliminating the need for you to invest time and money in property repairs or improvements. Before making a decision on auctioning your house, we encourage you to explore the possibility of working with us to determine if our approach better aligns with your needs.
Feel free to reach out to us anytime by calling (231) 392-3262 or simply click the link provided to complete the form on the following page, initiating the evaluation process. Ultimately, the choice of whether auctioning your house in Southwest Michigan is the right path for you is yours to make. However, we invite you to consider partnering with us to potentially secure a more favorable outcome prior to venturing into the auction realm. To begin the process and discover the advantages of collaborating with I Buy SW MI, submit your information below!
Here’s another great read that we found when writing this article on some more tips and questions you should ask yourself before you auction off your house.