I'm considering selling my own home by auction and could use some input. Could use a full rehab (fancy) but it's fine as is. The ideal buyer in my mind is a buyer that could move in and do the rehab himself. I don't think there's enough room for a flipper. The neighborhood is doing well. I would like to get $275.000. The auction company suggests starting the bidding at $175,000. Cash buyers only. ARV is $375,000. 1700 square feet. Thank you for your wisdom.

Steve,

I tried the auction route. Never again.

It's all about getting the sale in front of more people.

Most auctioneers are not promoters. They place an ad in the paper (my newspaper is now digital and I don't bother with it), and maybe on his website.

I see auctions but forget to go. If an agent had approached me I would have made an offer.

There is no one making a fat commission to HUSTLE the deal.

Me? My neighbor opened a new RE office 1% commission. Posts on MLS, big on social media marketing, the whole works. Other agents come to him with buyers for 2%. Total commission paid by seller 3%.

Last month he sold 14 listings BY HIMSELF! $41,000 commission working from home.

I cannot find that buyer willing to accept outdated or worn with the intent to fix it up themselves. Today's buyers DEMAND perfection. They have been trained by HGTV's beautiful makeovers.

Anything less than perfect will drag down the price and the timing. Investors will lowball.

I HIGHLY recommend watching Katie Spaniak on Youtube to learn what today's buyers expect- FIXER UPPER: HGTV HAS DESTROYED THE REAL ESTATE MARKET

BRAD

I agree with Brad's take on auctions.

I've found there are about 5 types of buyers.

1.Flippers and rehabbers - will offer the lowest price

2.Landlords. May pay a bit more. Generally buy "C" or "B" properties. Generally do basic fix ups to the level of local rentals.

3.Those who want to live there and are willing to do the repairs. They may pay a little more and do the repairs themselves or hire them done. Often do upgrades and they plan to live there.

4. Retail buyers. Pay the most but expect perfection as Brad said. Those with money generally want "A" type places.

5.Entitled types - These want "A"places at 1/2 of "D" prices and are quick to call you greedy. Not worth bothering with - ignore them.

The big challenge with an auction is that you limit your buyer pool to "cash buyers only." Those will be investors who don't want to pay full retail price.

You want to market to homeowners, who are going to be willing to pay much more than investors. Get on MLS.

Why are you considering an auction instead of going the traditional route?

Toss my vote in for not selling at auction.

Dealing with cash only is one thing, but I think you will get more investors than owner occupied types.

You could do like GKARL did and list it yourself. Have a marketing blitz with some open houses. He had all the info available for the prospective buyer.

I am too lazy for that. I turn it over to my realtors. They come up with a selling price and I decide if I like it or not. Last few I bumped up and still sold within a couple days at most. Neither of those were 100% finished either. I knew I was leaving money on the table, but life got in the way. I only regret selling one of them.

Why cash only buyers?

Around here you can buy for about 80% of the retail price. Auction might be a good idea if there are significant defects with the house.

Around here you can buy for about 80% of the retail price. Auction might be a good idea if there are significant defects with the house.