I bought a property in Eagle Idaho, from a builder for over $120,000 below all the comps in the area. I priced it $50,000 below, trying to flip it for a quick 30-40K profit. It was on the market for three months and now winter is approaching. I don’t live in the area and I am moving out of the country come February. I am putting it up for auction at www.downsauction.com. The auctioneer recommended doing an absolute auction to draw more bidders (meaning it will sell to the highest bidder). My ex-realtor thinks I have lost my mind. I haven’t even told my husband. Am I doing something completely stupid? Anyone tried this before? Anyone heard of downsauction?
ginaski,
Glad to meet you.
You will find more and more investors using the auction method to sell their properties in todays market.
The Absolute Auction is the purest way of producing the desired results as it sends a strong signal to the bidding audience that the property will be sold at their price. There in lies the psychological advantage of an Absolute Auction.
If a buyer feels thay can buy at his or her price the buyer is more likely to bid. If more people bid thereby creating greater competition true market value and sometimes more than true market value is realized.
Downs Auction is a member of the National Auctioneers Association http://www.auctioneers.org from reading his web site and has been in business since 1979 so I would say he knows how to get the job done.
John $Cash$ Locke
Real estate auctions are becoming a preferred method of marketing real properties. They work well in both declining and rising markets. In a rising real estate market, an auction ensures the seller that they receive maximum exposure and gain the maximum price possible. In a declining market, the auction will effectively “freeze” the market around the subject property and will garner maximum exposure.
Downs auction is a respected real estate auctioneer and should serve you well.
Thanks. I appreciate your feedback. Obviously not living in the area makes things harder for me. I am also concerned about the time of year. I am going to keep my fingers crossed, I can afford a small loss, I just don’t want to loose my shirt. Thanks for your feedback.