Selling your home via auction in New Orleans offers an opportunity to sell your house quickly with no real estate agent fees, and often with a profit.
However, there may be disadvantages when auctioning your home instead of selling the traditional routes with an agent or a real estate investment firm like Louisiana Direct Home Buyers.
In this post, I’ll go into some of the do’s and dont’s of auctioning your house in New Orleans and surrounding areas, and discuss the question of “Is Auctioning Your House A Good Idea in New Orleans, LA?”
Is Auctioning Your House A Good Idea in New Orleans?
If you’re thinking about auctioning off your New Orleans house, remember that before the actual auction begins, there are several preparations you must make.
- To auction off your house, you must first find an auctioneer in New Orleans. There are many auctioneer companies out there, so be sure to do your research before choosing one to represent your house. You can search in your local phone book, go off of a referral, or head to the National Auctioneers Association website and do a quick search for auctioneers here in our area of LA. Look for folks with a lot of experience, and even show up to an auction or two to see how they run things. Find out what they charge for their services because their fees can be quite high. In some cases, they might take up to ten percent of the sale, which is a large amount of the profit. If you don’t want to hire an auctioneer, you can do it yourself. An auctioneer’s skill can drive up the price of a house, but you can run it yourself if you’re clear on the rules of the auction with bidders, starting bid prices, whether they need to have cash and a deposit, etc.
- Decide which kind of auction you want to run – Absolute or Reserve? When you have chosen the auctioneer company in New Orleans that’s best for you, decide which kind of auction you want it to be. In absolute auctions there is no minimum amount that your house must earn in bids in order to be sold. Whatever the highest bid happens to be is what you will get. Reserve auctions are auctions that have a minimum limit. If your house doesn’t reach the limit, it will not get sold. Between the two, it seems like there’s an obvious choice, but with a little illumination, you will find that reserve auctions aren’t necessarily better. With reserve auctions, your property will never be sold if bidders aren’t willing to push it to the limit, and you will be stuck with a house that you don’t want. Absolute auctions typically gather more potential bidders who are seeking out great deals. The difference between selling your house at auction or not could be made if one of them gets caught in a bidding frenzy. Carefully make your decision based on what you want more. If you want to sell your house as quickly as possible in New Orleans, then an absolute auction is quicker. If not, then a reserve auction may be the better option for you.
- Don’t leave out any faults about the house from your auction description. This is a crucial step in selling your house at auction here in New Orleans. List every issue with your property and don’t leave any out. If you do, buyers have a right to come after you for any problems that you didn’t list before the auction.
- Don’t go into an auction with fantasies of a bidding war erupting, leaving you with an enormous profit. Choose a realistic price that you are hoping to earn for your house, and don’t be disappointed if it sells for less than that. Due to the emotional attachment you may have to your house, auctioning your house in New Orleans can quickly spare you the heartache and stress of the more traditional approach, although you may earn less.
Why Are You Thinking About Auctioning Your New Orleans House Anyway?
You clicked on this post because auctioning off your house has crossed your mind.
Why not try if it could help you sell your house quickly, right?
Before you decide to auction off your house, try another option first.
Our company, Louisiana Direct Home Buyers, buys New Orleans area houses. We’re not looking to list your house, we’re actually looking to buy it.
- In any condition
- In any part of town, even other parts of LA
- Houses with lots of equity, even with little to no equity
We’ll pay a fair price, we can close fast (in as little as 7 days), and you won’t have to fix the house at all.
If you’re curious about what we can pay for your house BEFORE you decide to auction it off, reach out to us.
You can call us anytime at (504) 500-5608 or just click the link below and fill out the form on the next page to start the process.
So, Is Auctioning Your House A Good Idea in New Orleans? That’s up to you to decide. If you want to see if working with us makes more sense before you jump into the “auction” world, submit your info below to get started today!
Here’s another great read that we found when writing this article on some more tips and questions you should ask yourself before you auction off your house.