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  • February 9, 2014 at 8:23 PM #20959
    LAAFTERHOURS
    Participant

    Over the course of the past month, I have been monitoring some homes in SEH and watched three short sales in a row go pending only to show up on auction.com with a 3 day bidding war. I decided to monitor the first two on auction.com as they started and ended on the same days. Both of them initially didnt get to the reserve price but then as I watched the clock expire on one of them, auction.com kept adding 2 minutes everytime the clock expired. This went on for about 15 minutes and finally the price went up about 12K to surpass the reserve price.

    I did a quick search and came across this: http://agbeat.com/housing-news/agents-fume-nationstars-relationship-auction-com/

    Have any of you seen or heard of this? I would hate to think the short sale process would be extended even further. If I was a buyer who has my offer agreed to then watched it slip away or was told i have to bid against others even though I had an accepted offer, I would be livid. Not only do you waste a ton of time and effort hoping you are getting a home, but then the added stress to bid to win it plus a 5% premium on top?

    Say it aint so..

    February 9, 2014 at 8:55 PM #770733
    spdrun
    Participant

    They’ve been doing this on the East Coast for a while now. Actually, some decent deals to be had. Even if reserve isn’t met, they sometimes sell.

    Time only gets extended if there’s a last-minute bid, same as a physical auction. They don’t extend just because reserve isn’t met.

    February 11, 2014 at 10:25 PM #770833
    CA renter
    Participant

    While I have long advocated using an auction site for short sales (and bank-owned foreclosures), it’s not right to ask agents to find a buyer first, before listing on the auction site. I also have a major problem with the 5% fee. It’s enough to have to pay the regular agents’ commissions, but to add the 5% fee on top of that? Sickening.

    February 11, 2014 at 10:32 PM #770834
    spdrun
    Participant

    In the ones I’ve seen, they were *not* allowed to accept a regular offer before the property was auctioned. I don’t see ANY problem with the 5% fee. It’s very clearly stated up front on the web site, and buyers can adjust their max bids accordingly.

    Figure out what the property is worth to you, divide by 1.05, bid up to that amount and no more. If you’re overbid, move on, there will be others. The only people getting screwed are the banks, but I’d rather see money in the hands of an auction company than more money in the hands of banksters.

    February 11, 2014 at 10:43 PM #770835
    CA renter
    Participant

    [quote=spdrun]In the ones I’ve seen, they were *not* allowed to accept a regular offer before the property was auctioned. I don’t see ANY problem with the 5% fee. It’s very clearly stated up front on the web site, and buyers can adjust their max bids accordingly.

    Figure out what the property is worth to you, divide by 1.05, bid up to that amount and no more. If you’re overbid, move on, there will be others. The only people getting screwed are the banks, but I’d rather see money in the hands of an auction company than more money in the hands of banksters.[/quote]

    Since we’ve been backstopping the banks, I’d like to see taxpayers (and savers!) get a break on this, too. Not that the banks would ever pass the benefits on to their customers or taxpayers, though. 🙁

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