Realtors who work hard to get the maximum price and best terms for their clients by and large resent the auction process. Hereâ€™s why:
1. It does not provide due diligence to ensure that the seller gets the absolute best price and terms. Itâ€™s a proven fact that proper preparation and staging will reap significant dividends when selling.
2. It is an easy way out for the listing agent â€“ all that is typically required is to put a ridiculously low price on MLS, then hold a 3-hour event where either an actual auctioneer is present to auction the home or, more typically, the listing agent collects written â€œbidsâ€ on a special, proprietary form and then, later that evening, works the phones trying to get the top few bids to bid against each other and raise the price.
3. By and large, the people who show up at these events are looking for a bargain. They are not there because they are willing to pay market price â€“ they smell blood in the water.
4. Since the home is typically not available to view before the auction Open House, it provides a very small window of time for a buyer to actually view the home. Many buyers cannot make it for the â€œeventâ€ and the one that loses is â€¦ the seller.
5. It sets up a higher probability for dual agency. Many buyers show up at these events and, if their agent cannot make it, ask the listing agent to represent them, thinking theyâ€™ll have a better chance to actually get the home. In reality, only one person will actually win the bid, and then the listing agent is free to market to all those who wanted to be represented by them. Itâ€™s a VERY tacky practice.
Bottom line, youâ€™ll be far better served by a traditional agent who will work with you to properly prepare your home, provide staging as required and then full, comprehensive marketing to showcase your home AND ample access to ensure that buyers can get in as often as they want to so as to ensure the house is right for them.
Here is a post that may be helpful:
Top 5 Questions To Ask A Listing Agent (And 5 Classic Questions That Are Meaningless)