At several of the "Auctions" I attended, the operations were not quite "Cricket". All the buyers who came in were asked to sign in to a book at the entry with their name AND THEIR HIGHEST BID, and show proof of either cash, or a bank preapproval letter. This book was open to anyone who walked up, and they could see the other's high bids. Interestingly, about 80% of the "Bidder"-Buyers had only qualified for about what the low starting price was, or perhaps 5% or 10% more.
When the "Bidding" started, the auctioneer quickly asked for bids of $50,000 over the asking price. Sometimes he got them, or at least $25,000 over, then quickly on up to $100,000 over This immediately knocked out about 80% of the "Bidders" who had come to the sale expecting to get a very good bargain. From then on, they were just spectators. The result was that only a handful of bidders continued to be in the game. At least there was crackers and cheese and wine there.
What I thought was unfair, was that the auction company had other "Bidders" (were they real?) on the phone bidding against the bidders in the room. These phone bidders were being represented by the auction company, I was told. The auction company already knew from the registration book what the stated high bid would be from all the bidders who registered. Ooooh. Interestingly, these phone bidders never were the successful bidders at the auction. Were they just there to drive up the bidding price?
Now, here is another way this is not really an "Auction". You see, it was explained that the successful highest bidder had ten days to back out without any penalty. What, you say? Yes, the highest bidder could back out soon, or later. AND, it was said that if that happened, the auction company would go down the list of the next highest bidders, offering it to them at the same price. Yes, THE SAME PRICE. Again, is the highest bidder a real buyer? Was the highest bidder just there to win, then back out when the fun was over? Did the home actually sell for that price eventually?
Finally, as the auction went on, the highest bid bounced back and forth between the last two high bidders in the room with increases of as little as $500, until one gave up. The resulting price was a so-so good deal. I saw the highest bidder back out before leaving the house at least once, after thinking about the price they finally got. Other highest bidders backed out within a day or two.
So, don't believe you will be allowed to buy that home for anywhere near the original asking price. Once the "Auction" begins, that price is trounced right away, one way or another. I came to the conclusion it was all really just a marketing gimmick to get lots of attention for the home that was for sale. The "Auction" did not commit the highest bidder to actually buy the home!!! There were also lots of opportunities for the Auction Company personnel to manipulate the bidding with unfair knowledge and methods. Did they? I don't know, but it surely was possible. The resulting sale price was not even good enough to keep the highest bidders on the line in some of the cases I saw.
Oh, by the way, the auction company may get a commission of 10% or more from the seller for holding the auction. I suppose that if the house HAS to sell fast, regardless of price, because of impending foreclosure or for other reasons, it MAY be worth it. However, what if all the bidders back out unless they get a discount from the final bid price? Maybe a normal sale with a realistic low price would work just as well or better. In todays market in the San Francisco Bay area, it would work.
reasonably priced listings are up for auction,....
they are probably listed under price as they are short sales. This in no way means the property will be sold for the low amount in fact they usually are not. That which looks like a deal may not be. Short sale listing prices mean nothing. the sellers lender can deny the sale in a heartbeat and will usually wait 40 days before you get to hear that the price was too good to be true.
ahhh I just realized what you meant,...
TRULIA ACTION listings,....
these are usually not even listed. this is info showing how much they are in default usually. It is info from realty trak. it is misinformation.
If you are looking for a home look for ACTIVE in the status section.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate Broker License # 01312992