Home auctions sound great, but in reality no silver bullet
We are in a market where homes are languishing unsold.
So it’s with a strange twist of logic that some sellers are turning to auctions in hopes of finding a magic potion to attract those hard-to-find buyers.
After all, if you can’t find a buyer after multiple price reductions, why then should uttering the magic word “auction’’ attract hordes of eager buyers?
Still, it’s a phenomenon that appears to be taking off – check out this Christian Science Monitor story on a successful home auction in the suburbs of Boston.
Bidding on the 1830s federalist style home started at $200,000, dropped to $150,000 and wound up at $225,000.
As a counterpoint to that, I would offer up this story about a not so successful attempt to auction off this multimillion-dollar home on Beacon Hill.
In general, an auction works best if you have the flexibility to start off at a low price – if you are mortgaged to the hilt, that’s not going to give yo much wiggle room.
For readers here expecting to see a post on what you can find under $300,000 within 495, you will have to wait a couple more weeks. I announced plans to kick off this series today, only to quickly realize Labor Day weekend isn’t the best time to check out open houses.
I did happen across one “gem’’ in Dedham that was originally listed in the market for just under $400,000 but is now up for grabs for $299,000.
More on that later.
