Attending an Auction - Posted by Marcus Chicago

Posted by Rich on December 09, 1999 at 07:28:01:

Marcus,
It has been my experience with auctions that if the property doesn’t bring what they want, it doesn’t sell. They might let it go for less than the $300k, but that will be up to the owner to decide. As long as it’s not a ‘forced sale’, more than likely they are just trying to create interest, and hope that two people will show up and bid the property up to their selling price. You could always call the auction company and ask what the ‘reserve’ is. If they tell you, you’ll know up front what the least amount you’ll have to pay. If they don’t tell you, it’s probably a waste of your time to attend. Good luck!

Attending an Auction - Posted by Marcus Chicago

Posted by Marcus Chicago on December 09, 1999 at 07:13:11:

I went to look at a piece of property yesterday evening. It was a rehabbed house. A beautiful loft on the second floor and a storefront on the first floor.

What happened was that the person that bought it was an electrician and did all the work by himself. He put it on the market a year ago with ReMax for $300,000 and couldn’t sell it (WAY overpriced)

Now, some auction company decided that they could sell it faster. Opening suggested bid is $100,000. The auction will be next week, done open outcry bidding.

Any tips or experiences?
Marcus Chicago

Re: Attending an Auction - Posted by charles (del)

Posted by charles (del) on December 09, 1999 at 09:37:25:

i auction residential lots all the time. i typically get very near market price. Thus auctions are not necessarily a “deal”.

One way to get a deal is to go to auctioneer before the auction and ask whether they would consider an offer before the auction. You will have to know what your target price is. they may take your offer before the auction or gamble that you will bid at the outcry later.

Either way be careful bec your 10% deposit will be NON-refundable.