Things to know about selling homes by auction
Ever wonder if you should try to sell our home by auction. What should you know about this type of sale?
In a typical transaction done through a real-estate brokerage, Ontario law prohibits one potential buyer from seeing an offer from another potential buyer.
In an auction, the bidding process is open. Potential buyers can submit a bid knowing the amount bid by other potential buyers. Some would argue this makes the process more transparent.
It also means you won’t get the protections that come with working with a registered real estate professional.
Why would a seller choose to sell through an auction?
It may be a faster way of selling your property: You will quickly learn what someone is willing to pay for your property, good or bad.
However, there is also no ability to deal with individual bids once the auction has begun. As soon as that hammer comes down, your property will be sold to the highest bidder, assuming it reaches any reserve bid.
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