Can you auction off your house

And no neighbors investigating your medicine cabinets during open houses. Competition from motivated buyers should get you the true market value of the property. Eliminates the aggravation of showings and open houses. You won't have to negotiate with buyers. Auction houses market your property aggressively before the sale.

In a competitive bidding situation, you may get more than you expected for the home. Cons of selling a home at auction Of course, selling a home at auction has its downsides. Some buyers believe that all auction sales are distressed properties. Auction costs are higher than real estate commissions.

The pool of buyers is smaller because only those who can close immediately are qualified to bid. A "no-sale" auction in which no one buys the property can harm the perception of your property value. If the property doesn't sell, you still owe fees to the auction house. In an absolute auction, you may get less than you wanted or expected. But you have to take it. How to auction your own home Yes, you can auction your own home. Related: 5 Tips for First-time Home Sellers Before selling your home at auction It is helpful to make the transaction as transparent as possible for potential buyers.

Next, you'll want to decide how to structure the auction. Absolute auctions obligate you to sell the home to the highest bidder. They tend to attract more buyers and generate more bids. Many auction pros recommend this route to spark a bidding war and perhaps get a higher price. However, you also risk not generating enough interest and having to sell your home for much less than you want. Minimum bid auctions require anyone bidding on the property to submit a predetermined minimum bid. So you know that your home will sell for at least the minimum bid.

However, this does limit the pool of buyers and may not get you the highest price. If you get no bids, you'll incur a no-sale fee. Reserve auctions allow you to decide if you want to accept the winning bid or not.

You set a minimum price that you are willing to accept and don't have to sell if the highest bid does not meet or exceed that amount. However, because the reserve is not known to the bidders, many don't bother with these auctions.

These are held by governmental authorities. Each of these can break down into two other types of auctions. In a confirmation auction, the lender has the choice to accept or not accept the winning bid in other words, it could decline the sale if the bid is too low. In an absolute auction, the highest bidder wins the property. But before going through with a home auction, make sure you consult your fiduciary financial advisor , as there are risks involved. Remember why these homes were foreclosed on in the first place.

In some cases, they may have even intentionally done damage when they knew they were losing the home. And even if you can tour a home before the auction, you can only see so much. There could be severe problems behind the walls or under the floors. The property may have claims or liens against it from any number of creditors.

That burden shifts to you along with the keys to your new house. There are ways you can win big on foreclosure auctions. But you have to do it the right way. A good way to start is by narrowing your search to houses that allow pre-auction inspections. Or if you know an experienced contractor, you could ask them to accompany you to assess the home and estimate the cost of any repairs. Actively participate in the auction of your house.

Observe what kind of advertising the agent uses including listings in auction catalogues, fliers and newspaper ads. Discuss any concerns that arise. Bring your lawyer on the day of the auction, if required in your state, to assist with the sale documents.

You can also select a future date with the buyer to go through the paperwork. Personal Finance Home Finance. Ask about government programs through Fannie Mae and Freddie Mac designed to help you keep your home out of foreclosure. They normally extend the length of your loan to add missed payments to the end of the loan rather than requiring you to get caught up immediately.

Contact an attorney and file for bankruptcy, if you need that financial relief. The attorney must work fast to get the case on the court calendar, but as long as the proceedings are started before your house auction, the bank must stop the foreclosure process pending the outcome of bankruptcy.

The bankruptcy trustee creates a payment plan that allows you to pay back your past-due balance to the bank over time as long as you begin making your regular payments, as well. Pay the lender all of your missed payments along with any penalties and late fees in a lump sum, or ask the lender about breaking the lump amount into three or four large payments.