The numbers are starting bids, so don’t put too much weight on them. They are meant to stir interest. The sellers have an unpublished reserve price.
Here is a quote from the web site :
Reserve Price. All Properties have a Reserve Price, meaning the Seller of each Property has established an unpublished, minimum selling price. The starting bid is not the Reserve Price. In order to become the Winning Bidder for a Property, a Bidder must meet or exceed the Reserve Price and have the highest bid. The Auctioneer may open bidding on any Property by placing a bid on behalf of the Seller. The Auctioneer may further bid on behalf of the Seller, up to the amount of the Reserve Price, by placing successive or consecutive bids for a Property, or by placing bids in response to other bidders. If no bidders meet the Reserve Price, the Seller is under no obligation to sell the Property. The Seller may withdraw a Property at any time prior to the announcement of the completion of the sale by the Auctioneer. Auctioneer is not acting as an agent for any Bidder in any capacity, and is acting exclusively as the Seller’s agent.
So a potential buyer gets to bid against other buyers AND maybe even the auctioneer himself until it reaches the unknown reserve price.
Also, the buyer gets to pay a 5% premium above the auction price (this sounds like a real estate commission to me).
How much below market will these homes sell for at this auction ? My guess … not much if at all. I’m also guessing that the majority go unsold.
