If done correctly, an auction can help you get the highest price for any property. You must be willing to initially offer it for at least one-third below its current market value to generate interest. The property must show extremely well to attract the most buyers.

Then, your agent must market the heck out of it on all media. If you can hold in-person open houses only hold a limited number of them (like four). If everything goes right it will sell at or above the current market value due to the bidding frenzy that is likely to result. If not, most auction contracts allow you to back out of the sale if you don’t get a certain minimum price.

I’ve seen auctions be very effective even with non-distressed properties because people think they’re going to get a bargain and then get caught-up in the feeding frenzy. I’ve done the same thing without using a formal auction by just having the seller price their house at the lower-end of the value range getting 28 offers and $150,000 over the asking price.