Would you buy a house through an auction?

The auction format would reduce the chances of shenanigans taking place.  In today’s market, with short sales growing and manipulating agents causing more suspicion, a pure shot at buying a house would be appreciated.

I think the auction format could catch on, and with some luck become a primary resource for buyers and sellers.  It would take the right ingredients to build the trust necessary:

  1. No reserve price – highest bidder buys it.  (or a low reserve to give bidders guidance)
  2. Inspection report made available to all buyers.
  3. Property is vacant and open 9-5 for inspection the previous two weekends, and on lockbox.
  4. Open bidding where you see the competition eye-to-eye, or a sealed-bid process.
  5. Seller pays 3% commission to buyer-agents, not tacked onto price as a ‘buyer’s premium’. 
  6. Preferred financing available with seller buydowns.
  7. Have the whole package bundled up and broadcast over the internet on Jim TV!

Include a full photo and video display on the first day of the listing, and have the entire production coordinated by an established long-time realtor with good looks and dazzling personality, and it could take off just for the entertainment value alone.  But it’s the purity that would be attractive to the those watching, and make them more comfortable with participating the following week.

You see more of them around, here’s a couple of recent examples:

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Jim the Realtor
Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!

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