What are the pitfalls of selling a home auction style? Are there better ways to sell a home fast?

Profile picture for raskd
Because of health issues we cannot deal with showing our house many times during the long process of a traditional sale nor is there enough equity left in our house to pay a realtor commission.  We would like to advertise our house as an auction sale, show the house specific hours over one weekend, and take bids within a specific timeframe shortly after showing. We will have a house inspection before the auction and sell it "as is" with a required minimum starting bid and proof of buyer financing. We would also hire a real estate attorney to do necessary paperwork.
Is it possible to sell a house this way?
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August 14 2009 - Morrisville
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Answers (3)

Hi Raskd,

#1 First check to see if there are any state laws preventing you from doing this or certain restrictions.

#2 Check to see if you can get a discount broker and fee service to post your house on MLS in a price range you can afford. You may or may not get full service but you may get some good support.

#3 Learn the market to know what your competition is and to see what similar houses are selling for. 

#4 Remember, "as is" is a relevant term and buyers can have a full inspection that can take a couple of hours and may come back with something.

$5 Lastly, your house has to appraise, which is a pain lately so go back to #3.
 
Good luck.
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August 15 2009
You will need to advertize like it's going out of style. There are so many forclosures around it's sort of amazing. Many houses have auctions where no one shows up. (This isn't to say they are all deals, some houses aren't a bargain even if they are $1)I'm not sure if this is an extremely effective tool in your market. Definitely involve an attorney if you go this route.
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August 14 2009
Profile picture for wetdawgs
It is possible, but chances are very good you will get quite a low price. 
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August 14 2009
 

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