This post may contain affiliate links which means that if you click through to a product or service and then buy it, I receive a small commission. There is no additional charge to you.

This is a collaborative post.

There are several circumstances when it might be a good idea to consider auctioning your home instead of completing a more conventional sale. Auctions aren’t just for repossessions anymore. Here are five reasons you may want to consider putting your home under the hammer.  

Quickly Sell at Market Value in a Slow Economy

We’ve all heard horror stories about houses that stayed on the market for years and years in a recession or just a slow housing market. A house’s value doesn’t always depreciate at the same rate as the market, resulting in a long lag before a sale. It can be maddening to have such a large amount of money tied up in a property that just won’t sell. Selling at auction ensures that you will get a fair market value for your home, almost by definition. And you will have the security of knowing just when the sale will happen.  Here’s how it works.  

Auction Buyers are Serious Buyers

Many buyers at property auctions are looking for investment properties. Others are looking for a fixer-upper. Either way, they are coming to auction prepared to lay their money down, unlike some browsers who just like to check out real estate listings. Avoid a situation where a buyer appears totally serious and committed all the way up until closing, when they suddenly change their minds, leaving you to go through the whole process all over again.  

You Know When Your House will Sell

Maybe you have landed a hot job in a new city. Perhaps you need the money from selling your old house to buy your new home. Or maybe you are in the midst of a personal emergency, and you need the cash from your sale sooner rather than later. There are lots of situations where selling quickly could make all the difference for you. Auctioning your property gives a set window of time, and you know the sale is final as soon as the hammer falls.

Auction Buyers can See Potential

There are lots of things that can make a property difficult to sell in a traditional real estate transaction. Dilapidated houses, quirky or niche properties, houses with current tenants in situ, or homes with any other considerations that may complicate the transaction may struggle to find buyers in a conventional sale. These types of property, however, are ideal for auction. And a reputable auction house will have regular buyers that they work with, email lists, and social media marketing capacity to make sure the word gets out about your rare gem.  

There is No Ceiling in an Auction

Selling at auction is like having a lottery ticket, but with a guaranteed minimum payout (your reserve price). If you get lucky, your auction might just get hot. The reality of being in a room together, or even in an online bidding war, brings out a competitive spirit among buyers. Their emotions become involved in putting in the winning bid. All of this can benefit you a great deal. This is especially true if are fortunate enough to be selling into a tight market. Your sale price might just go up and up!