Comparing a Real Estate Auction to a Traditional Listing

Auction: Sale takes place on a specific day that you determine.
List and Wait: Sale takes place whenever buyer comes in with suitable offer; could take several months.

Auction: Buyers are motivated and act on your schedule.
List and Wait: Little motivation for buyers; you wait for them.

Auction: Focus is on your property.
List and Wait: You compete with many, many other listings; buyers may—or may—ever see your property.

Auction: Extensive accelerated marketing program features your property exclusively; your property is the ‘star.’
List and Wait: Minimal advertising, with heaving reliance on multiple listing services; your property can get lost in the shuffle.

Auction: Auction provides catalyst that maximizes buyer interest.
List and Wait: Price reduction often encouraged to create buyer interest.

Auction: Results in offer in 30-45 days or less.
List and Wait: May remain on market for months or longer.

Auction: Eliminates guesswork in determining asking price for property.
List and Wait: Seller risks overpricing or under pricing.

Auction: One or two showings in a short period of time at seller’s convenience.
List and Wait: Dozen of showings over months; maximum inconvenience for seller.

Auction: Realizes real estate’s true market value; no upside potential limit.
List and Wait: Upside potential limited by asking price.

Auction: All conditions of sale set in advance; negotiations eliminated.
List and Wait: Seller must negotiate all aspects of sale.

Auction: Property sold without contingencies.
List and Wait: Contingencies are common.