Wes Mazurek writes a monthly column for the Kalamazoo Gazette regarding real estate auctions. This article is an expanded version of the February, 2001 column.

Q. How much less will I get for my home if I sell it at auction?

A. The auction method does not always bring less, although I do understand your concern. Sellers automatically think that auctions bring less simply because it's an auction. That's what auctions do you know. This is not always the case. Please understand that market conditions and the condition of the property determine what price a property brings, not the auctioneer or the auction. The auctioneer is merely soliciting bids from the audience in an effort to get a figure that is acceptable to the seller. The amount that a seller needs has nothing to do with what a buyer is willing to pay. Have you ever heard a seller say," We'll list a little high and see what the offer looks like"? Listing too high can lead to a property being on the market a very long time.

If the expected monetary return of the seller is based on what he/she thinks the property is worth and not what the market is willing to pay, then, of course, they would think that the auction method brings fewer dollars. A property is worth only what someone is willing to pay for it. Buyers are buyers, meaning that they look for bargains in all buying situations.

The advantage of selling your property via the "Auction Method" is that it brings buyers to you at a specific time and place. Sellers know when their property is going to sell and under what terms and conditions. No more waiting and wondering when a buyer is going to come along and make an offer. Your negotiating is almost reduced to zero. So, how much less will I have to take if I sell my home at auction? It is all in the eyes of the beholder. Our job as auctioneers is to bring the seller an offer. It's the seller's job to decide if they want to accept or not.

Email to Wes@DreamHomeAuctions.com