Why Sell Your Property at Auction? Let the Numbers Talk.

For years, I've been tracking key metrics like sales prices, closing times, seller costs, and the relationship between sales prices and property assessments. Recently, I've even started comparing sales prices to online estimates from sites like Zillow and Realtor.com. The results? They're compelling.

Sales Price vs. Assessment: Uncovering True Value

Property assessments can be subjective, often reflecting a value owners are willing to tolerate before appealing. However, they provide a baseline for comparison. Our data shows that auction sales prices average around 155% of assessed value, with a median of 135%. While there's a wide range (43% to over 400%), this means you can generally expect a sale price significantly higher than your assessment.

Seller's Costs: The Auction Advantage

Here's where the real magic happens. Our average seller costs are a mere 1.12% of the sale price, with a median of 0.9% and a range of 0.1% to 4.5%. How? We don't charge sellers a commission. Instead, a buyer's premium is added to the winning bid, covering any buyer's agent fees. This drastically reduces seller expenses, typically limited to recording fees, deed preparation, and document costs—averaging around $1,600 (median $1,100).

Think about it: a traditional agent sets a listing price, which often becomes the ceiling for offers. Factor in potential price reductions, and the final sale price can fall well below the initial listing. In contrast, auction seller costs hover around 1%. Traditional agent commissions add another 5-6% (or more!), a staggering 500% increase.

Essentially, auctions work for the seller, driving prices up through competitive bidding, rather than negotiating them down.

Data Speaks Louder Than Words

When selling real estate, consider an auction. It maximizes your return while minimizing your costs. I'll be diving deeper into these data insights in my next blog post, so stay tuned.