Advice needed selling house at Auction
Question: Considering selling a house at auction. Generally speaking, what do houses bring in value at auction compared to selling retail? I read that houses at auction typically bring 2/3 to 3/4 retail value. Does this seem accurate?
Thanks for your input.
Answer: If they brought that, I would buy every one that I saw. I can live very well at 75% or less of value. But, reality is that lately they have been bringing 70 – 95% of value. Most of them anyway. I’ve seen them go for 115% of list price, and I’ve beeen lucky enough to get some at 50%. So, it varies.
the key is to NOT GO ABSOLUTE. No matter what teh auction company tells you about more buyers whenit is absolute, do’nt take that chance! I was once the executor of an estate and had to sell a piece of farm land. The tenant who was farming it offered 60,000. I declined, and later it was appraised at 75,000. Then, a lawyer suggested holding an auction, and the final selling price was 85,000. The lawyer guessed that it would have sold at around the appraised value if done through a real estate agency. Just one incident for what it is worth.
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