The Right Type Of Auction For Your Home
Some home owners choose to sell their property through a real estate auction. The real estate auction for houses provides a win-win situation for distressed borrowers to release themselves from the property that can be a great deal for real estate investors and savvy home buyers.
If you want to take part in a real estate auction, here are the two types of auction that is right for your home.
1. Absolute Auction. This is the standard type of auction process where the property will be sold to the highest bidder. This will not set a reserve price but there is also a risk that the highest bid may fall below market value. If you want to present your home to an absolute auction bidding list, check out your local Realty Association for a list of professionals in your area.
2. Reserve Auction. The seller has the right to set forth a minimum bid in the reserve auction. The seller can also reject an offer or counter a specific bid if the owner finds the price unreasonable. In some cases where the sellers could not move their properties fast enough, even through a short sale, the reserve auction allows them a chance to get the top dollar amount to put towards their mortgage balance.