I’m pretty sure this auction will have the same results as the Bressi auction held a few months back. There will be bids on each property, but the bids will not meet the reserve. In the Bressi aution there were bids that went as high as 10% below MLS listings and the investors (owners) did not sell.
I believe that there may be a slight discount, but not more then a couple %. Im sure that there have been lowball offers on many of these homes and the REO’s did not sell them then. This is just another way to get buyers to look at these homes. If you bid 450K on a home listed on MLS for 500k, you will only save 25K after the 5% auction commission. I think eventually as REO inventory goes up, you will see more reasonable prices(desperation). This auction may help in future price reductions, but at this point prices will remain firm and near MLS listed price.
Your talkign about the one May 12th in SD convention center,
Yea I am going to that one as well, I looked at a few of the homes in Fallbrook area, Just my opinion, but These would not be a great buy even at Minimum bid. (maybe just OK but not great).
Read the fine print and you’ll see that the properties have a reserve and the Auctioneer will bid until reserve is met. I don’t know if by Auctioneer they mean the guy doing the calling or Auctioneer “company” which would mean the audience is laced with sanctioned shills. That part about consecutive bids leads me to believe the audience is going to be filled with shills.
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 All Properties have a Reserve Price, meaning the Seller of each Property has established an unpublished, minimum selling price.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. ”
IMHO, sucker them in with low-ball listed prices, get the hype flowing with rapid bid ups to the reserve and let someone blind step into “winning”.
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