I wanted to add our experience with an auction. For us it was a disappointment and waste of time. I'll admit that we had never been to an auction and didn't know much about how it all works.
A few years ago we heard about a condo being auctioned. We always admired them but the original $399,000 price was out of our range. We watched as year after year For Sale signs were posted and the price eventually dropped to $299,000 (still too much for us).
When we heard about the auction we decided to attend and be prepared to bid up to $150,000. We didn't think it likely that we'd win but thought it was worth a try. We drove up to the lake for the auction and were surprised that there was only one other person in attendance. The auctioneer then told us that there was a $269,000 minimum bid. That information was never mentioned in their website or emails.
As we were leaving we asked the agent if he'd like to take down our name and phone number in case they would consider a lower price. The agent said "no, we'll just put it back on the market if it doesn't sell here".
Our conclusion was that the "auction" is just another sales tool to get you in the door. It worked with us since we took a day off and drove all the way up just for this.
We later learned that what we were hoping for was an "absolute auction" where the property is sold for the highest bid with no minimums. Does anyone know if absolute auctions ever occur around the lake?
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07-20-2011, 01:02 PM
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