5 Auction Myths You Thought Were True

What comes to mind when you hear the word "auction?" Chances are it's a misconception or a myth.

KIKO has been successfully selling real estate at auction since 1945 and as an industry leader, has seen a thing or two over the years.

As the auction scene continues to grow in popularity, let us dispel the most common auction myths.

Myth 1 - Auctions are a last resort for desperate sellers or foreclosed homes.

Fact: Auctions are for sellers who want to control their sale from start to finish. Our auction sellers set the date, time and terms of their sale.

The property can be sold “as is, where is” with no contingencies.

All of this control means sellers can make a plan and get ready for their next adventure!

While it’s a common myth that only distressed property is sold at auction, that’s not the case. Less than 10% of KIKO auctions are foreclosures or bankruptcies. Our real estate sellers are people who want the power to decide how and when their properties move through the market.

Myth 2 - I’ll be giving my house away if I sell at auction.

Fact: That really isn’t the case. Professional auctioneers are committed to marketing an auction using websites, social media, signage, print advertising and more to draw the most bidders possible on sale day. And, those interested bidders will compete to give you the true market value of your home. Sometimes that competition can even drive up the value of your home.

Myth 3 - I am in charge of selling my parents’ house. My siblings will be upset if I auction it.

Fact: In the event of an estate, an auction is the best way to divide interest to the beneficiaries. An auction is an open, public transaction. If you’re dealing with a parents’ estate, siblings or extended family can watch and even bid on a piece of property if they want – giving them direct input on the property’s value. In our opinion, auctions are a game-changer when it comes to dividing assets among family members.

Myth 4 - Buying at auction is a risk. I won’t be able to see the property.

Fact: Most professional auctioneers will hold open houses or make the property available for inspections before sale day, so buyers know exactly what they are purchasing.

Myth 5 - You must be present to bid on and buy property at auction.

Fact: A buyer is not required to be present at auctions where online bidding is available.

With the rise in popularity of online transactions remote bidding is secure, easy, and accessible to buyers who may not be able to attend in person.

Bonus Myth - KIKO only does auctions.

Fact: We sell about 500 properties as private for sale listing transactions as well as conduct nearly 1,000 auctions each year.

Even more than that, KIKO is an advisor on buying and selling real estate, land and personal property.

At KIKO we understand that every property is unique. We analyze the property, location, market conditions and more. Wouldn’t you want advice tailored to match your specific real estate needs?

Questions? We have answers! Call KIKO today at 800-533-5456 to learn more about buying and selling at auction or check out our current and upcoming auctions.

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