The word auction conjures up images of art at Sotheby's going for astronomical prices, or a fast-talking guy in a straw hat selling odds and ends at a frantic pace. In today's sagging real estate market, it can also apply to selling your home.

In tough financial times, it's not the strong who survive-it's the ones who adapt. For homeowners who need to sell their property because they can't get a mortgage refinance, a real-estate auction may be just what the doctor ordered.

Selling real estate in this rather unorthodox manner has helped motivate today's buyer in ways that more traditional methods cannot. It's helped the auction grow in popularity, especially in areas like Florida and California, where people are suffering from declining home prices.

Creating a sense of urgency

One of the big problems with a down market is that home shoppers don't want to purchase until they know that the downward plunge is over. No one wants to buy unless they're sure that they've got the right value for a property.

A real estate auction eliminates that problem in a gavel beat. By being exposed to a property with competitive bidders, a buyer gets an immediate sense of exactly how much a home is really worth. There's no need to bother with an appraiser' estimation-the actual price tag becomes apparent in a matter of minutes.

Sellers like the auction format, as well, because it tends to light a fire under the buyer. With a number of people submitting a bid on a property, buyers feel a sense of urgency akin to buying property in a hot market. It's a herd mentality, and it's proving much more effective than traditional selling methods.

Auctions not for everyone

A real estate auction has proven to be highly effective for sellers who have been unable to refinance, as well as buyers-but the format isn't for everyone. Sellers must be prepared to sell their homes quickly, and should have a decent amount of equity in the property in case the price tag drops. It should be noted that there are safeguards to prevent prices from dropping below a seller's comfort level-minimum bids can be established.

Buyers also need to have their ducks in a row. Before making a bid on a property, they should extensively research the home prior to the auction. Visiting the property, and ordering a home inspection, is strongly recommended. A homebuyer should also have his financing in line, since often a buyer must agree to a contract without contingencies.

The topsy-turvy home marketplace has got sellers who can't get a mortgage refinance desperate to light a fire under buyers. It also has buyers eagerly trying to find accurate ways to assess property values in a plummeting market. The real estate auction satisfies both parties, which is why it's gaining in popularity. In this market, only the strong will survive, and they'll do it by adapting to innovative marketing methods like the real estate auction.