Zuctions - Posted by Rich-CA
Posted by Rich-CA on October 13, 2007 at 17:51:52:
I went to a Treasury auction in Phoenix a couple of years back. There were two sets of bidders. One had notepads and stacks of paper (comps, budget figures, etc.). The others had a glazed look.
Before the auctioneer circulated and ask the people with file folders and clip boards what their max was. The highest of these was the starting bid - saving the time of starting from the minimum. After the first bid above this, one set of people checked their notes, some recalculated a few numbers, lots of heads shook “no” and the people with the papers faded towards the back. The property eventually went for $20k more than the same floor plan just one block away was listed for (one participant had pulled the info sheet), except at an auction there is no inspection or financing contingency to get out of the deal. You would have those things on a regular listing.
Conclusion: decide BEFORE you show up what your limit is going to be. Do NOT exceed it. Make sure you have room in case it costs more to fix than your estimate, that you make a profit, and that you account for holding costs, especially as you try to sell.