Property is sold through auction for quick profit and to avoid lengthy procedures that happens with residential properties.

Auction , tender, private sale are 3 strategies.

DC Fawcett Reviews whether it is profitable or not. There are chances of property getting sold at higher price but there are situations where bidders don’t turn up or bidder quotes a less price and none to compete.

• Get a valuation before you set a reserve price that is, the bidders should not ask for a price lesser than that. The reserve price is actually under value price.

• Reserve price differs from guide price. Guide price is less than the property price. Reserve price is the minimum price that the bidder should ask for. It’s bad when bidding price is less than reserve price, it is loss.

• You should find an agent with auction houses to bid. Choose the property only if it is at the right location. Browse through their websites to know more about their previous auction sales. There are several sites who exclusively list auction properties, have a look at them, make assessment of similar properties. Find your auctioneer and ensure he has license. Get mortgage approval for financing.

• You can find online agents to market your property as they are affordable.

The costs you need to bear if you are selling your property through auction

• Commission: it is around 2.5 percent but varies depending on auction house you choose.

• Advertising: for promoting about your auction, you need to spend on various advertising agencies and you can choose how you want to advertise as well.

• Hiring fee: The room you hire for auction to take place, you need to pay for the number of hours you have stayed. If it is online auction, its free

• Admin fee: This is actually depressing, when property doesn’t sell, you need to pay.

• Legal fee: for the paperwork, you ought to pay the concerned persons. It is usually 30 to 45 days process.

Pros

• No contingency involved. The seller set all the terms and conditions

• No home inspection. This can be done if the buyers really want to check the property.

• No curb appeal improvements

• No closing cost and realtor fee

• Fast process

• Time for negotiation is very less.

• Determining market value is difficult

DC Fawcett complaints  about conducting an auction

• People who have bargaining mind often visit auctions so the statistics prove that properties are sold forty percent lesser than the actual price usually.

• When the reserve price is too high , the chances of bidding is less

• Auctioneer fees may exceed realtor fee in some situations

Online auction scam is growing day by day as it is easy to find deals online, at the same time it has invited lot of problems.

If you want to know more about selling your home through auction, its benefits and drawbacks, check out DC Fawcett virtual real estate investing club where blogs are written for investors. You can get an idea about virtual wholesaling also through these blogs as many new investors find it comfortable as there is no risk involved.