Property Auction Site: The Future of Home Sales?
Today, most people using an online property auction site are looking for homes that have been repossessed by the government. But while using these sites for a regular home sale isn't common practice today, there are signs that it could become the norm in the future.
A property auction site creates competition among buyers by its very nature. When well promoted, it can attract bidders who may well go well over their intended purchase price when confronted with the possibility of losing the house to another bidder. There is also a psychological factor at play. A real estate agent can always tell her clients that "many people" are interested in buying a particular home, but this is a well known sales trick and seldom has much of an effect. Actually seeing others bidding on a house, however, has a powerful effect. People naturally want something that others want as well.
Buyers rule the roost when it comes to a typical home sale. While the seller is always free to put any asking price they want on their home, if it is rejected for long enough they will soon see that they are not the ones in charge of setting a price. Buyers will always be the ones who determine the price of any given object, be in a house or anything else. This doesn't change on a property auction site (in fact, it is even more pronounced), but there are other aspects of control that are restored to the seller. They get to decide many of the details of the sale, including the date and the reserve.
Get True Value
Putting your home up for sale in the traditional way takes some guesswork. You look at comparable homes in the area that have sold recently, you get it appraised, and you consult with a real estate agent perhaps. These are all effective tools in determining a price, but it's easy to undersell your value. Putting it on a property auction site (with the right promotion) nearly guarantees that your final price will be extremely close to the true value of the home in the current market.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR