In our local area, it is currently a seller’s market. But what does that mean?
A seller’s market is when there are more people looking to buy homes than there are homes available for sale. Thus we see the current climate of houses being marked pending the day they hit the market. The demand is more than the supply and this means the seller is at an advantage. Houses will sell faster and buyers may have to compete with one another in order to make a purchase. This often means buyers will be willing to pay more in order to get the home they want. Sometimes even foregoing inspections and showings. This puts the buyer at a disadvantage.
Selling real estate at auction makes the process fair for everyone. Buyers can learn the date of the sale ahead of time and take the time to view the property and order inspections if desired. Then, they are able to make informed bids at the auction, knowing that there will be no contingencies. The seller knows they are getting the highest price the market can offer because potential buyers are bidding competitively against each other, not blindly making competing offers. They are able to bring their best offer to the table and know that their offer will be heard. It is a level playing field where the only factor is price – there are no escalation causes, no time expiration offers, no financing contingencies. It all comes down to the price.
Ultimately, an auction is the most transparent way to buy and sell real estate. Buyers are able to come to the table and give their best offer. Sellers can have certainty they are getting the best price.
For more information on selling real esate at auction, contact our Real Estate team today at (717) 731-8662.