However, as with all things, there can be downsides to auctioning your home rather than selling it through the traditional real estate sale process with an agent or to a real estate investment firm like Oahu Home Buyers.
In this article I’ll dive into some of the do’s and dont’s of auctioning your house in Oahu and surrounding areas and discuss the question of “Is Auctioning Your House A Good Idea in Oahu Hawaii?”
Is Auctioning Your House A Good Idea in Oahu?
If you’re looking at auctioning off your Oahu house, keep in mind that there are several preparations that you must make before the actual auction starts.
- In order to actually get your house auctioned off, you must first find an auctioneer in Oahu. There are many auctioneering companies out there today, so do your research before picking one to represent you and your house. One place you can begin your search is your local phone book, or head over to the National Auctioneers Association website and do a quick search for auctioneers here in our area of Hawaii. Look for those with plenty of experience, and even try to attend an actual auction, just to get a feel for how the process is run. Be sure to find out their fees, as they can sometimes run quite high. In some instances they may take up to ten percent (10%) of the home’s cost, significantly reducing the amount of profit that you would receive… sometimes much lower. If you decide this is too much and if you don’t want to hire an auctioneer… you can do it yourself. A skilled auctioneer can really help drive the price of a house, but you can run the auction yourself as long as you’re clear and upfront about the rules for all potential bidders, the starting bid price, whether they have to have cash on hand, any deposit requirements, etc.
- Decide what type of auction you want to hold – Absolute or Reserve? Once you’ve selected the auction company in Oahu that’s best for you, decide which kind of auction you want it to be, either absolute or reserve. In absolute auctions there is no minimum limit that your house must go for in order to be sold. This means that whatever the highest bid ends up being is what you’re going to get. Reserve auctions are those that have a minimum limit, and if the sales price doesn’t reach that limit, then it doesn’t get sold. Although it seems like a clear choice between the two, don’t assume that reserve auctions are always better. Sometimes if bidders aren’t willing to bid up to the chosen limit, it will never be sold and you’ll be stuck with a house that you don’t want. Also, auctions that are “no reserve” (or absolute) tend to attract more potential bidders to the auction looking for a great deal. If one of them gets wrapped up in the bidding frenzy, it could mean the difference between selling the house right there that day and not selling it at all.Think carefully about making a decision, and try to decide what it is that you truly want. If you want to sell your house as quickly as possible in Oahu, then doing an absolute auction is the better option. If not, then perhaps a reserve auction would be more in line with your goals.
- Don’t leave out any faults about the house from your auction description. A really important step in selling your house at auction here in Oahu is to list all the problems that your property has – and just about all houses have some faults, whether serious or not. Don’t leave out any faults about your house, because if you do the buyers have a right to come after you for any flaws that you didn’t list out before the auction.
- Don’t go into an auction with fantasies of a bidding war erupting, leaving you with an enormous profit.Place a realistic price that you hope to earn, and don’t be too disappointed if your house sells for less than you think it’s worth. You may have an emotional attachment to the house that the people bidding on the house don’t have.Auctioning your house in Oahu may bring in less money than a real estate sale, but it is relatively quick, and can spare you the heartache and stress of the more traditional approach.
Why Are You Thinking About Auctioning Your Oahu House Anyway?
You landed on this article for a reason… auctioning off your house has at least crossed your mind. You’re considering it.
It may help you sell your house more quickly… so why not give it a shot, right?
Before you choose to auction off your house… you may want to try a different option first.
Our company, Oahu Home Buyers, buys Oahu area houses. We’re not looking to list your house… we’re looking to actually buy it.
- In any condition
- Any part of town and even other parts of Hawaii
- ugly houses, pretty houses, houses in great shape, houses that need lots of repairs
- houses with lots of equity and even houses with little or no equity
We’ll pay a fair price, we can close fast (in as little as 14 days), and you won’t have to fix up the house at all. That’s right — no repairs required.
If you’d like to see what we can pay for your house BEFORE you decide to auction it off… contact us today.
You can call us anytime at 808-377-4379 or just click the link below and fill out the form on the next page to start the process.
So, Is Auctioning Your House A Good Idea in Oahu?… that’s up to you to figure out. But if you want to see if working with us makes more sense first before you jump into the “auction” world… submit your info below to get started today!
Here’s another great read that we found when writing this article on some more tips and questions you should ask yourself before you auction off your house.