Why Are More Buyers BUYING AT AUCTION

Buyers often assume…

1. That auction properties are only for investors
2. That the homes are in poor condition, needing major repairs and renovations
3. That it is even more of a competitive market than the normal process of buying a home

With inventory being so low, more and more buyers recently have realized that opening up their home search to include auction properties unlocks opportunities for them that the normal market may not bring. It is not a secret that over the last few years the real estate market here in the Greater Philadelphia suburbs has seen unheard of sellers’ market conditions. This has enticed many sellers to want to take advantage of the market, however many of whom were still hesitant to sell because of the amount of energy that goes into selling a property. When a seller is going to sell their home it is not always actual repairs and maintenance issues that need to be done to get their home ready for market, more often than not it is just clearing out their items and cleaning the property that can feel just as daunting. It’s for this very reason that many sellers are turning to auctioning their home to take advantage of the truly full service nature of prepping and selling their home. Causing many move-in ready properties to be hitting the market at auction.

It’s also no secret that with inventory being low in comparison to the amount of buyers looking to buy, many homes are still receiving multiple offers which causes buyers to have to do things like price escalations, waiving inspections, appraisal gap coverage, etc. Buying a home at auction just takes what’s happening in the normal market and puts it into a transparent format. Selling at auction takes the guessing game out of the competition. You know the terms you are competing against, and you see the actual price someone is offering and can decide whether or not you want to go higher than that. Doing this takes the fear out of if you overpaid for the property, because you saw exactly what other people were willing to pay for it too, and you get rid of the fear that you just missed out on a property because you didn’t realize how close you actually were to winning.

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How Do I Submit an Offer?

Most people assume that buying a home at auction is a longer, more tedious process than the normal buying process, but it is actually simpler. Unlike the normal process you don’t have to deal with any of the paperwork until AFTER you already know if you won the property.

It’s also no secret that with inventory being low in comparison to the amount of buyers looking to buy, many homes are still receiving multiple offers which causes buyers to have to do things like price escalations, waiving inspections, appraisal gap coverage, etc. Buying a home at auction just takes what’s happening in the normal market and puts it into a transparent format. Selling at auction takes the guessing game out of the competition. You know the terms you are competing against, and you see the actual price someone is offering and can decide whether or not you want to go higher than that. Doing this takes the fear out of if you overpaid for the property, because you saw exactly what other people were willing to pay for it too, and you get rid of the fear that you just missed out on a property because you didn’t realize how close you actually were to winning.

Want to get on our list to receive regular updates of upcoming auction opportunities? Sign for our newsletter TODAY!