Sellers have a new weapon in the housing market.
The auction of residential real estate property is becoming a more mainstream choice to quickly move property. Countering a slow market ? June figures by Metropolitan Regional Systems Inc. indicate that property takes an average of 82 days to sell in the region ? auctions help sellers avert the waiting game while maintaining control of the sale price.
“We are seeing people turn to the auction method more and more and do not want to be waiting months at a time not knowing when an offer will come in,” said Janice Nelson, director of project management for Fox Residential Auctions. “It?s a very fast and efficient method for the seller to sell their homes, and it ensures the buyer a fair market price and allows the buyer to be competitive in terms of knowing what other people are offering.”
Real estate is also the fastest growing segment of auctions nationally, up 8.4 percent in residential, 7 percent in land and agricultural and 4.9 percent in commercial, Morpace International Research reported. In terms of dollars, the National Auctioneers Association indicated that residential real estate sales accounted for nearly $14.2 billion in auction sales last year.
Typically, a real estate agent will discuss an auction as a possible option with a seller as a way to quickly move the house. While auctions may not always reach a desired price threshold, proper preparation, showing and advertising of the house may help increase the number of bidders, Nelson said.
“It depends on the area,” said Ilene Kessler, president of the Maryland Association of Realtors. “I have noticed more [auctions being conducted] in the Baltimore, Baltimore County area then Howard, Anne Arundel or Harford counties.”
And as auctions pick up, both Baltimore County and City find themselves beating the region?s average of 82 days on the market. A home in the city averages 81 days to sell, while a home in the county takes 72.
“When the market slows down or corrects itself, people try to do something to get a heads up on it,” Kessler said. “But in the end, if a home looks good and priced well, it sells, even in a slow market.”
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