There are many different approaches for home sellers looking to avoid the usual real estate issues. The biggest options are auctions and selling for cash. Both options have positives, but which is better? Here are 5 comparisons between real estate auctions and selling to cash buyers.
5. Ease of Operations
Real Estate Auction
Real estate auctions tend to follow the same pattern – list the property with the auctioneer, advertise the auction for upwards of six to eight weeks, sell the property on the auction date, and close within the usual 30 days. Auctions tend to sell property “As-Is”, but homes need to be cleaned out. Any items left in the house will technically be sold with the house. So if you want to keep your stuff, you better clean.
Cash Buyers
Cash buying does not follow a timeline. There is no marketing, there is no advertised sale date, and there is no closing period. Cash buyers will buy your house. Period.
Winner – Cash Buyers
4. Excitement
Real Estate Auction
Auctions are full of excitement! Pre-approved buyers show up from any number of places near or far to compete with one another for your property. You can sit and watch paddles fly and the prices steadily climb – the prices won’t climb usually much higher than the market value of the house, but it’s still fun to watch!
Cash Buyers
Cash buying does not provide any excitement other than the excitement of selling your home.
Winner – Auctions
3. Quickness of Sale
Real Estate Auction
As stated above, real estate auctions tend to follow the same pattern – list the property with the auctioneer, advertise the auction for upwards of six to eight weeks, sell the property on the auction date, and close within the usual 30 days. This process can be much quicker than a traditional listing, and it is definitely much more predictable than selling a home on the open market. So the total time until you sell the house is roughly 2 months, depending on the auction company.
Cash Buyers
Cash buying happens quickly. A buyer will come to the house, view the property, and pay cash. Seven to ten days is necessary for the title company to prepare the proper documents. This means you can close on the house in as little as one week.
Winner – Cash Buyers
2. Number of Competing Offers
Real Estate Auction
Auctions hinge on creating competition. The idea is to whip a crowd into a bidding frenzy and drive up the selling price. Auctions will bring multiple offers to the table.
Cash Buyers
Cash buying does not induce competition. Cash buyers simply want to buy your property at a fair price and close quickly.
Winner – Auction
1. Cost to Seller
Real Estate Auction
Auctions cost money. Auction companies have to cover listing prices, advertising, market research, and sometimes even the auctioneer’s time. And they will pass these fees onto the buyer and seller and call the fees ‘premiums’. A seller premium can be as high as 10% at auction. That is a huge chunk of the home’s value.
Cash Buyers
Cash buyers don’t charge a dime. They’re looking to buy the home, not sell it for you. There are no hidden or agreed-upon fees. It’s a pretty simple process.
Winner – Cash Buyers
So there you have it! Cash Buyers win 3-2!
What cash buyers lack in excitement, they make up for in efficiency. Selling your house for cash is the easiest way to go about it, even if cash buyers lack a certain flash and salesmanship. If you’re looking to sell a house quickly and without Realtors, sell to Local Cash Buyers! Give us a call at 469-701-1666 or fill out an online form to get started!