Mar 25, 2022
Estimated Reading Time: 4 minutes
Table of Contents
What is a Real Estate Auction? A Real Estate Auction is a process where buyers are given the opportunity to place a bid (offer) on the property and must compete with other buyers being the highest bidder to purchase the property.
When you have multiple offers on a property, the competition between these buyers drives the final sales price above the list price. Does that sound familiar?
It should sound familiar. This is how Kansas City’s real estate market effectively operates today, even if you sell your home through a traditional list and sell real estate process.
In today’s real estate market, where Kansas City properties typically receive multiple offers and sell above list price, you are essentially having a real estate auction by another name. We are real estate auction experts! Call us to learn how to take full advantage of this high competition, low supply market. Read our Real Estate Auction to learn more.
In today’s real estate market in Kansas City, demand is high, and supply is low. This can result in multiple offers on your property. Knowing that a lot of people are putting in offers motivates buyers to submit their own offers quickly. This is how a real estate auction operates by default. We are experts at bringing in multiple buyers and maximizing the sense of urgency in any type of market. Let us use our expertise to bring in multiple highly motivated buyers to the sale of your home.
Another advantage of a real estate auction is that it moves potential buyers off the fence. A real estate auction is timed defined and interested buyers know they must take action if they don't want to miss out on the opportunity to buy your property. Also, the competitive nature of a real estate auction motivates buyers to bid up to their maximum price. This means your buyers in a real estate auction will be highly motivated and fully engaged in the process.
In a hot real estate market, it’s common for buyers to bid above the listing price. That’s great, but why put a limit on what you can make with a published list price? With a real estate auction, there is no ceiling on what your home can sell for. We are experts in creating a highly competitive environment where your home will sell for top dollar.
With a traditional sale, buyers are given several opportunities to back out of the deal. This includes financing contingencies and inspection contingencies. With a real estate auction, a buyer is welcome to inspect the property before the auction. A real estate auction buyer can use financing to purchase the property, but the property must be inspected, and the financing must be arranged before the auction. Once the auction is completed, the sale is final. There are no contractual loopholes for the buyer to back out of the sale.
With a real estate auction, the negotiation happens between multiple potential buyers. They compete with each other achieve the highest price and purchase of the property. This is a big benefit of real estate auctions over a traditional sale. Instead of the buyer negotiating with you to lower the price, multiple buyers are competing with each other to increase the price.
Today’s hot real estate market is great for sellers. The time-defined sales period of real estate auctions heightens competition and ensure that you achieve a high sales price for your home. A real estate auction maximizes the upside potential of a hot market!