Selling a flip house using a silent auction

[Justin Workman]

I have a house that is nearing completion. Based on the comps it should sell around 100k. My current fear is that inventory is high and days on the market is getting longer. I have been contemplating the idea of holding an auction. The process I have heard of is setting a date, advertise it, and hold some open houses, and at the auction have a piece of paper listing bids and names. It is treated as a silent auction, with prequilified bidders. The advantage is that I can reduce one side of the commission, possibly both, sell it fast, get an in-person bidding war. The downside is it could not draw the right buyers, I could loose out with conservative, or fearful bidders, and it might not sell, at which point I would loose a few weeks on the MLS, putting me in no-mans land listing near the holidays. I am looking for thoughts, ideas, or other challenges I would face with this selling tactic.