Are you sitting with a problem property that you’d like to market yourself? Although you may not have heard of a quick sale auction, this is a known strategy that works.
Apart from more conventional strategies, a quick sale auction could be less complicated than anticipated. This simple process does involve some time and effort, along with minor marketing expenses but these will be offset when the property sells.
What’s a Quick Sale Auction?
Although, the tactic is called a quick sale auction, no auctioneer is required because the bidding process is more like a silent auction. With a quick sale auction, the object is to first generate interest among as wide a group of investors and buyers as possible. After that, you will need to focus on creating a sense of urgency around the sale.
Before you begin marketing your property via auction, you’ll need to decide the type of quick sale auction this will be. All auctions are either an absolute auction or an auction subject to reserve:
- With an absolute auction, the property must be sold to the highest bidder
- With an auction subject to reserve, a minimum price is set that must be reached to sell the house
- Prospective buyers must know this information; their strategy will depend on these terms
Preparing for Auction Day
You’ll want to create some appeal but not too much. The idea here is to have the property appear desirable; highlighting it’s potential without detracting from the idea it’s a wonderful bargain.
- Price to sell: When selling a problem home, your asking price must be fair and competitive – here’s where researching other properties similar to yours, in the area will help. Couple the right price with willingness to negotiate and you’ll have the formula for success.
- Curb Appeal: The fastest and most effective way to up visual allure is with curb appeal. Consider making small improvements like mowing the lawn, tidying walkways or planting a few flowers. First impressions count and go a long way in attracting buyers.
- Clean Up Clutter: Take control over any clutter and do some basic cleaning. Buyers should be able to check under sinks and in closets without fear. A clean house is always more appealing to viewers.
- Smell Control: There’s nothing trivial about a bad smell. When you’re marketing a problem property, you don’t need disturbing odors hanging around. A bad smell can make your potential buyers just want to get out of there as soon as they can. Opening up the building to fresh air and adding some air freshener or a candle can help.
- Little Fixes: Small fixes, properly done, can add to the overall appeal but once again, you don’t want to do too much. Touching up the paint or fixing a broken porch rail can freshen up the house.
Quick Sale Auction Process
When selling a problem property, experts recommend the 5-day, quick sale auction technique. This strategy involves marketing the property intensively for five days. Plotting your marketing strategy and preparing any documents can be done before you begin the process.
You will need to create an auction bid sheet for your property – this document is the key to the procedure and the central point of the entire auction. This sheet is where potential buyers will place their bids and can view previous bids.
Your document is basically a form for bidders to fill out: There must be lines for the name, main phone number, address, email address and the bid. The auction bid sheet must be placed in an easily accessible area where people can gather, such as the kitchen.
On the fifth day, you will need to hold an open house for a few hours – 2 is recommended. Those who attend will have the opportunity to view the property and then make their offer. By getting all the potential buyers together at the same time, you are creating impetus for action and encouraging bidding.
If this all sounds too overwhelming, you can always contact the trusted professionals at KForce. With our extensive experience serving homeowners in the DFW Metroplex, we can help you find the solution that best suits your circumstances.