a new way to buy homes
Australia Has Hit On A Genius Way To Take The Guesswork Out Of Homebuying
Real-estate auctions are rare in the US but popular in Australia. They're a genius way to take the guesswork out of buying and selling homes.
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The Lede
Trying to buy a house can feel like playing a game of poker in which one player holds all the cards. When the seller's agent tells you they're weighing another bid, there's no way to tell if their claim is bluster or fact. When you lose, you may not know whether another $10,000 would have sealed the deal or if your insistence on an inspection tanked your chance. The nagging uncertainty isn't limited to buyers. But it doesn't have to be this way.
Key Details
- In Australia, about a third of homes sell via auctions that wrap up in a matter of minutes. Sellers get to see how far buyers are willing to go to nab their dream home; buyers gain a picture of what it takes to win in the market.
- The real-estate industry is notoriously resistant to change, but recent class-action lawsuits have rewritten the rules about how buyers pay their agents.
- Capitalizing on this feeling, a small cadre of companies are trying to bring versions of the Australian model to the States.
