Question Details

Kdjuell, Home Buyer in West Milford, NJ

How come we had the high bid when the auction ended and then the offer was declined? Was there a reserve price? If so it wasn't shown on the

Asked by Kdjuell, West Milford, NJ Mon Mar 18, 2013

listing.

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Answers

4
How was the auction performed/handled?

Some websites, like Hubzu.com show if there is a reserve amount and whether or not it has been met.

Sometimes, the Seller still has the right to decline the highest bid (for reasons like proposed closing date, financing vs cash, etc).

Some auctions require a deposit be made before bidding begins, so it may have disregarded your bid if you did not have a deposit in.

It really depends on what type of auction and through what vendor it was performed.

Make sure to read the rules/guidelines/procedure with any auction situation. I just did an auction with a client that actually had a "buy it now" function and we did it that way and got the property even though we weren't the highest bid. It's allllll about the fine print.
0 votes Thank Flag Link Wed Mar 20, 2013
Refer to your 'Auctions 101" manual provided to you by your real estate professional.
In the reserves section will be the details regarding 'blind reserves.'
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If this part of the auction process is distressing you---you really, really, really, need to read the purchase contracts to get a grip on the full spectrum of risk to which you may be exposed. The bidding process is elementary.
0 votes Thank Flag Link Tue Mar 19, 2013
Ultimately the seller decides to take or not take a bid. The offer you made may not have been high enough to satisfy the bottom line for the seller/investor. Be cautious with auctions. The majority of these homes could not sale on the retail market usually due to issues associated with condition of home, improper permitting, clouds on title, etc. You should do your inspections before deciding if and what you will bid (if possible).

Fred Strickroot
HomeNet
Lic. Florida Real Estate Brokerage
(Contact Through Trulia Profile)
0 votes Thank Flag Link Tue Mar 19, 2013
You can check with your broker.

If you participated in a short sale or trustee auction, the lender may not accept your high bid as sufficient.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Mon Mar 18, 2013
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