Property Auctions Question

[Jazzman]

Any brokers with any experience in home auctions, not to be confused with trustee sales. I am interested in an REO , and the lender has decided to place the property in an auction. Opening bid is $100k, and the homes is currently listed at $714k. Is this a big gamble for the lender, or have auctions in this market been successful for sellers. Is there usually a reserve, and can the lender bid up the price? Any information on how this process works, and whether is presents an opportunity much appreciated.

[SD Realtor]

Actually this is no risk at all for the lender. Most all auctions have a reserve price and it is highly probable that the seller (lender) has a right of refusal of some type for the winning bid. There also may be shills at the auction as well. One never knows. Different auctions have different rules and the best way to get experience at any of them is to simply go and attend a few. The price is free and the experience is priceless.

[SD Realtor]

Actually this is no risk at all for the lender. Most all auctions have a reserve price and it is highly probable that the seller (lender) has a right of refusal of some type for the winning bid. There also may be shills at the auction as well. One never knows. Different auctions have different rules and the best way to get experience at any of them is to simply go and attend a few. The price is free and the experience is priceless.

[SD Realtor]

Actually this is no risk at all for the lender. Most all auctions have a reserve price and it is highly probable that the seller (lender) has a right of refusal of some type for the winning bid. There also may be shills at the auction as well. One never knows. Different auctions have different rules and the best way to get experience at any of them is to simply go and attend a few. The price is free and the experience is priceless.

[SD Realtor]

Actually this is no risk at all for the lender. Most all auctions have a reserve price and it is highly probable that the seller (lender) has a right of refusal of some type for the winning bid. There also may be shills at the auction as well. One never knows. Different auctions have different rules and the best way to get experience at any of them is to simply go and attend a few. The price is free and the experience is priceless.

[SD Realtor]

Actually this is no risk at all for the lender. Most all auctions have a reserve price and it is highly probable that the seller (lender) has a right of refusal of some type for the winning bid. There also may be shills at the auction as well. One never knows. Different auctions have different rules and the best way to get experience at any of them is to simply go and attend a few. The price is free and the experience is priceless.

[Jazzman]

Thanks SD. From what you say, a sale is not sure-fire as the banks are holding all the strings. Not the spirit of an auction IMO, so probably best left alone. From what I’ve managed to glean, this type of auction is a marketing ploy for homes that have sat for a long time, but you can expect up to 20% off list. The downside is seller carries auction fees. Comp auctions in my area show mostly lower priced homes, so this home is an outlier. Apparently, multi-million dollar home auctions with $$$ marketing budgets have not all been successful. I expect many brokers therefore will be watching this one.

[Jazzman]

Thanks SD. From what you say, a sale is not sure-fire as the banks are holding all the strings. Not the spirit of an auction IMO, so probably best left alone. From what I’ve managed to glean, this type of auction is a marketing ploy for homes that have sat for a long time, but you can expect up to 20% off list. The downside is seller carries auction fees. Comp auctions in my area show mostly lower priced homes, so this home is an outlier. Apparently, multi-million dollar home auctions with $$$ marketing budgets have not all been successful. I expect many brokers therefore will be watching this one.

[Jazzman]

Thanks SD. From what you say, a sale is not sure-fire as the banks are holding all the strings. Not the spirit of an auction IMO, so probably best left alone. From what I’ve managed to glean, this type of auction is a marketing ploy for homes that have sat for a long time, but you can expect up to 20% off list. The downside is seller carries auction fees. Comp auctions in my area show mostly lower priced homes, so this home is an outlier. Apparently, multi-million dollar home auctions with $$$ marketing budgets have not all been successful. I expect many brokers therefore will be watching this one.

[Jazzman]

Thanks SD. From what you say, a sale is not sure-fire as the banks are holding all the strings. Not the spirit of an auction IMO, so probably best left alone. From what I’ve managed to glean, this type of auction is a marketing ploy for homes that have sat for a long time, but you can expect up to 20% off list. The downside is seller carries auction fees. Comp auctions in my area show mostly lower priced homes, so this home is an outlier. Apparently, multi-million dollar home auctions with $$$ marketing budgets have not all been successful. I expect many brokers therefore will be watching this one.

[Jazzman]

Thanks SD. From what you say, a sale is not sure-fire as the banks are holding all the strings. Not the spirit of an auction IMO, so probably best left alone. From what I’ve managed to glean, this type of auction is a marketing ploy for homes that have sat for a long time, but you can expect up to 20% off list. The downside is seller carries auction fees. Comp auctions in my area show mostly lower priced homes, so this home is an outlier. Apparently, multi-million dollar home auctions with $$$ marketing budgets have not all been successful. I expect many brokers therefore will be watching this one.

[Jazzman]

I just googled Williams and Williams the auctioneers to find out if pre-auction bids are a way of teasing out the reserve and came across this …http://williams-and-williams.pissedconsumer.com/williams-and-williams-auction-good-deal-or-rip-off-20080626125421.html

Thought it may be useful to anyone else thinking of going down the auction route. I know, I know only bad publicity get’s aired, but no smoke as they say.

[Jazzman]

I just googled Williams and Williams the auctioneers to find out if pre-auction bids are a way of teasing out the reserve and came across this …http://williams-and-williams.pissedconsumer.com/williams-and-williams-auction-good-deal-or-rip-off-20080626125421.html

Thought it may be useful to anyone else thinking of going down the auction route. I know, I know only bad publicity get’s aired, but no smoke as they say.

[Jazzman]

I just googled Williams and Williams the auctioneers to find out if pre-auction bids are a way of teasing out the reserve and came across this …http://williams-and-williams.pissedconsumer.com/williams-and-williams-auction-good-deal-or-rip-off-20080626125421.html

Thought it may be useful to anyone else thinking of going down the auction route. I know, I know only bad publicity get’s aired, but no smoke as they say.

[Jazzman]

I just googled Williams and Williams the auctioneers to find out if pre-auction bids are a way of teasing out the reserve and came across this …http://williams-and-williams.pissedconsumer.com/williams-and-williams-auction-good-deal-or-rip-off-20080626125421.html

Thought it may be useful to anyone else thinking of going down the auction route. I know, I know only bad publicity get’s aired, but no smoke as they say.

[Author]

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