- 12 May
If It’s a Seller’s Market, Let’s Have an Auction
We’ve all heard the term “It’s a Seller’s Market,” but do you know what that means?
If you live in Nashville, you probably already know we have been rated and ranked among one of the top cities for growth. It seems the residential real estate market can’t keep up with the demand. Our housing market has rebounded and is 11% stronger than pre-recession prices. According to Greater Nashville Association of Realtors (GNAR), closings for April 2015 are up 6.3% from last year at this time. Want to know what I think and how those numbers translate in the auction world?
Well, think about this…how would you want to sell your home if you happened to own a home in an area where demand is great, knowing homes don’t typically last more than one week on the market? Would you want to get the most money, or would you want to take the first offer? What kind of sale would you have if people were invited to participate in competing for your home? Let me answer that question; an auction.
I tell people who own homes in areas of great surges of growth, “I would be afraid not to have an auction.” With so much competition, it just makes good sense. I hear stories from potential buyers who have made back up offers to the back up offers. I also hear these potential buyers say, “They should have had an auction.”
If you are one of the sellers who received an offer within days from the initial listing, I’m sure the first thing your brain said to you was, “Thank goodness.” I’m quite sure shortly thereafter, your brain said, “Well maybe I didn’t ask enough for my property.” There is something conflicting and unsettling in this scenario; it’s simply human nature.
Now, as a potential buyer, you may want to live in an area where it seems everyone else wants to live; it validates your choice so to speak. We have a lot of these areas in Nashville. Also, as a potential buyer, you probably want to feel like you didn’t overpay for your new home. This is when I like to interject the auction philosophy.
The auction method allows a buyer to feel more in control of the situation because ultimately the buyer is naming his/her price. We all want to feel like we’re in control when making a decision as important as buying a home. We want to work with a real estate professional we can trust to make good decisions for us moving forward. By the way, auctioneers selling real estate at auction must hold a real estate license as well as an auctioneer’s license and auctioneers work with real estate licensees everyday in coming up with auction solutions for their sellers.
I know an auction sounds scary and unpredictable, and I know it’s not the first thing that comes to mind when wanting to sell a home. Quite frankly, every situation is not a good auction situation. However, I strongly recommend you consider the auction method of selling as a viable option. Talk to an auction professional. There are many great real estate professionals in Middle Tennessee, and an auctioneer can be a great partner in a real estate transaction. Couple a strong market with a strong auction professional, and you’ll most certainly be glad you considered (had) an auction.
About the Author
Patti Baldini has been in the auction industry for over 20 years. Her auction services are full scale and specialty areas include Estates, real estate, antiques and fine art.
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