Experts … Ever Sold a House Via Auction?? (long) - Posted by Sandy FL
Posted by Sandy FL on November 03, 1998 at 11:29:19:
Until recently, all HUD sales were done in my area by sealed bid. In July,
our area had our first of many HUD auctions. Investors, myself included,
attended to see if there were any bargains and possibly bid.
Well, most of us were surprised by the results-- retail prices being bid on
properties that needed major repairs— up to $10-15k worth of repairs!
Some of it my fellow investors have attributed it to “auction fever”. The
auctioneers have what I think they call “spotters” and when the bidding
gets down to 2, 3 or 4 people competing against each other, a spotter is
right there in front of each bidder, encouraging him or her to continue,
and the going price goes up up up!
So, one of the RE Club presidents here decides… “hey if these people
are paying that much for properties that need work… how much will they
pay for my rehabbed house?” and is having his own auction.
(I certainly hope he is hiring those same aggressive auctioneers which do the HUD auctions)
There is no fee for investors to list the property at the auction… there is
supposed to be extensive radio, TV and print advertising for the sale. There
is a 3% brokerage fee to pay if you accept the final bid. (it is not absolute) Bidders have to be pre-qualified, and I am assuming there is a way for bidders to inspect the properties prior to the sale.
I am pursuing the rest of the details about this, but I like the idea for one
reason so far: The auction is held Nov 21. If I do not have a serious bite
on my house by then, by all means, this could be a good chance to sell it
before years end. (I am under the impression that December is not a great
time to be trying to sell a house.) And if I do sell it myself, and withdraw it
from the auction roster, it costs me $100 to do so, big deal.
So finally, my QUESTION is…has anyone used this auction technique to sell a house,… and even if you have not, whaddya think??
Thanking All in Advance,