When it comes to the Bay Area real estate market, many people wonder what is the best choice for them: should they sell privately, or go with an auction? Of course, as with anything else, each one of these methods has their own sets of benefits and drawbacks. Knowing what those are can help an individual make the choice that works best for them. Indeed, there isn’t an easy answer to this question, as one has to take into consideration factors such as location of the property, style, and timing of placing the house on the real estate market.
An auction is essentially a sale that happens in a certain spot, at a given time and date. Because of the nature of an auction, a solid marketing campaign has to take place before the auction can happen, or else, the process may not be successful. An auction is run by a real estate agent, who hears bids called out by potential buyers until the ideal price is reached. There are rules and regulations in place for auctions, and they differ from state to state.
When it comes to Bay Area real estate auctions, they work best for properties on the market that are somehow unique or in high demand. The great thing about an auction is that they nurture competition and urgency, which can ultimately increase the sale price of the property. Thus, ensuring that the seller will receive the best price for their property. However, the fact that auctions happen out in the open can be a huge drawback for some, especially if they aren’t comfortable with everyone hearing what’s going on. A great solution to this is having a private auction, where only a few bidders are invited.
With a private sale, a house or an apartment is listed through a real estate agent. The property comes with an asking price, and potential buyers come to the agent to make offers. Then, the agent will go back to the seller and talk things through. At the end of the day, the seller decides whether they like the offer or not, and whether they want to accept it. The great thing about this method is that it is not as stressful, and is also less costly than an auction. If there are not a lot of offers, however, this method may last quite a while. Indeed, for properties that are not unique or in high demand, listing privately is the best way to go.
When it comes to making the decision between an auction or a private listing, it all comes down to what an individual is most comfortable with.