When do you know your house might be a good candidate for an auction?  Historically, the perception exists that auctions are mostly used for estate sales – to settle with the heirs.  This really is a great time for an auction, but there are also other times one should be considered.

1. If there is plenty of equity in a home.
2. If a bank agrees in advance to a short sale of a home and you know the minimum price. NOTE this is rare and you’d have to have a VERY GOOD relationship with the mortgage guarantor to make this happen.
3. Someone doesn’t want to make repairs – auction homes are sold as-is.
4. No budget for updating to get it in parade condition.  Caveat – buyers will take this into consideration and you’ll probably get a lower price.
5. Don’t want a home or land to languish on the market for a year – you need to sell it quickly.
6. You don’t want the hassle of people parading through your house with little notice. With an auction, a home is sometimes open for an advance preview – the time is predetermined and limited.  Otherwise, the house is open about two hours prior to the start-time of the auction.
7. Most importantly – we’re back to Number One.  In all cases unless it’s court-ordered, there needs to be plenty of equity for a homeowner to consider an auction.

Go to an auction sometime and experience the thrill and excitement.  If you think you might buy, be prepared to put a non-refundable 20 percent deposit down that day.