Selling properties at auction in Miami has become a growing trend throughout America. Selling at an auction allows the seller to avoid paying real estate fees, close on a sale quickly and often turn around a profit.
However, as with any practice or industry, there can be drawbacks to auctioning off your home rather than selling it through traditional methods – with a real estate agent or by letting an Investment firm such as us, at Sunshine State Buyers, buy your home.
Read Our Tips & Strategies Before Auctioning Your House!
In this article, we’ll dive into some of the Dos and Don’ts of auctioning your house in Miami and the surrounding area.
If you’re interested in auctioning off your Miami house, keep in mind that there are several tasks you must complete before the actual auction starts.
- Find an auctioneer in Miami with PLENTY of experience. There are many auctioneering companies out there today, so do your research before choosing who will represent your house.
To find an auctioneer check your local phone book, look for a referral from a real estate firm, or head over to the National Auctioneers Association Website and search directly for auctioneers here in our Florida.
- Attend a couple of auctions. By doing this, you’ll get a feel for how things are organized. Plus, it’s an excellent opportunity to see an auctioneer in action.
- Find out what the fees are. In some instances, auctioneers will charge exorbitant fees for their services. They may take up to 10% of the cost of the house, dramatically reducing YOUR PROFIT! A qualified and expert auctioneer, however, will drive up the sale price of your property. You need to think carefully and decide what’s best for you.
If you don’t want to hire an auctioneer, you can do it yourself! Make sure you’re clear to bidders about the rules of the auction, the starting price, and whether cash and a deposit are required on-site, etc.
- Absolute or Reserve? After selecting a house auctioneering company in Miami that suits you, you need to establish which kind of auction you prefer.
In absolute auctions, there is no minimum limit – meaning you’ll receive whatever the highest bid reaches – even if it’s not very high. Reserve auctions have a minimum threshold. If it doesn’t reach that limit, it doesn’t get sold.
- Don’t immediately assume that reserve auctions are better. If no one bids to the minimum limit, your property will never sell. You’ll be left burdened with a house that you don’t want.
Auctions that are “no reserve” (or absolute) tend to attract more interest and potential bidders in the hopes of getting a deal. It only takes a couple of buyers to get dragged into a competitive bidding war. Going for an Absolute auction over Reserve could be the difference between selling your house that day and not selling it at all.
Think carefully about making a decision, and try to decide what’s best for you. If you want to sell your house as quickly as possible in Miami, then an Absolute auction is the smarter option. If not, then perhaps a Reserve auction would be in your best interest.
- Be upfront and honest in the auction description. A crucial step to selling your house at auction here in Miami is to list ALL the problems that your property has explicitly. Don’t leave out any faults or issues. If you do, the buyers have the right to demand some form of penalty for the flaws you failed to mention.
- Don’t expect a phenomenal bidding war. Every homeowner at auction secretly fantasizes that their house will sell for tremendous amounts, making them rich in profit. But this is not the norm. You need to set a realistic price.
Don’t get too emotional if your house sells for less than you expected. Remember, you’re the one that has a connection to your home. The people bidding on the house do not – for most buyers, it’s just a building.
Auctioning your house in Miami may bring in less money than a real estate sale, but it is relatively quick and can spare you the heartache and stress that can accompany selling your home slowly through an estate agent or listing site.
Why Are You Thinking About Auctioning Your Miami House?
You landed on this article for a reason. Auctioning off your house has crossed your mind.
It may help give you the quick sale you’re looking for, so why not give it a go, right?
BUT, before you choose to auction off your local house, how about you take a look at what we can offer.
Our company, Sunshine State Buyers, buys houses in Miami. We’re not looking to list your house – we’re looking to buy it. Outright. In cash.
We buy Miami houses with or without equity in:
- Any condition (modern, dated, unattractive, etc.)
- Any part of town and even other parts of Florida
- Great shape or demanding A LOT of repairs.
We’ll pay you a fair price, and we can close fast in just 7 days. Plus, you won’t have to fix up the house at all. If you’d like to see what we can pay for your home BEFORE you decide to auction it off, reach out to us.
You can call us anytime at (305) 916-3328 or click the link below and fill out our short form on the next page.
So, in conclusion: “Is Auctioning Your House A Good Idea in Miami?”
The answer is entirely up to you! Your home = Your decision.
However, if you would like to find out whether working with us is better for you (before you jump headfirst into the deep end with the “auction” world), submit your info below to get started today!
Click here for another great read that we found while writing this article. The link includes some more tips and questions you should ask yourself before auctioning off your house.