Why Have an Auction? (And Why NOT To)

Let's start with the question nobody asks out loud: Why not have an auction?

There are actually some really good reasons. If you owe more on your property than it's likely to bring, an auction probably isn't the right move. If you're just curious whether anyone would be interested in your house — not really committed to selling — an auction isn't for you either. Same goes if you need to sell your current home for a specific price before you can buy your next one, or if you genuinely don't care when your house sells. Those are all completely valid situations, and the auction process isn't designed for them.

Now — why do people have auctions?

The sellers who come to us with real estate auctions have a few things in common. They're serious about selling. They want fair market value, and they want it on a defined timeline. They either don't have time to manage the showing-and-waiting game, or they simply don't want to. The auction process gives them a hard date, a clear outcome, and — more often than not — a result that surprises them in the best possible way.

Are people happy after the auction?

Usually, yes. Sometimes? Not as much as they hoped. Let's be honest — sometimes sellers expect more than the market delivers. Sometimes we expected more, too. Hindsight is always 20/20. But the flip side is also true: we frequently exceed what the seller hoped for, and that never gets old.

So why can't we tell you exactly what your property will bring?

Here's a question right back at you: if you listed your property traditionally, could you tell me exactly what it would sell for? If you can, you're psychic — and you should probably call me, because I could use that skill.

The truth is, everyone in real estate is making an educated guess. A CMA — comparative market analysis — is an educated guess based on what similar properties have done. An appraisal is an educated guess made by a certified professional whose entire job is to determine value based on past performance of comparable sales. Appraisers are skilled and credentialed, and their opinions carry real weight. But they're still working from historical data to project a future outcome.

Nobody — not your agent, not your appraiser, and not your auctioneer — can hand you a guaranteed sales price before the auction happens. What we can do is put your property in front of motivated, qualified buyers, create competitive conditions, and let the market speak for itself.

And more often than not? The market says something pretty good.

Happy Bidding!
Kara C. Belcher-Miller