Home Buying in Phoenix>Question Details

Mike, Home Buyer in 85224

What would a typical reserve price be at US HOME AUCTION?

Asked by Mike, 85224 Sun Feb 24, 2008

Does anyone have experience with US HOME AUCTIONS? I am wondering how much a typical reserve price would be for a home at these auctions. Are they typically the balance left unpaid by the seller to the lender? Are the reserves ever even close to the starting bids? Is there a way to get the reserve price on a home before bidding?

Thanks!

Help the community by answering this question:

Answers

6
My experience at auctions is as follows...

They advertise very low starting prices.
People bid them up a little, but end up with ending bids much lower than actual value.
In the fine print, it says all sales are contingent upon the lender or owner approving them.
Lenders or owners then come back a few days later with a counter offer.
The buyer says NO Way because they thought they were buying the home at a much better price than the counter offer.
The problem is everyone in attendance thinks the person stole the house, so they tell everyone they know.

I may be wrong here, but the only winners end up being the auction companies. They charge $2000-$3000 just to have the house included. Yes, they make more if it sells, but they make money even if it doesn't.

I would love to hear other peoples perspective on this one.

I think they are a waste of time. I think the best deals are lender owned properties...
2 votes Thank Flag Link Sun Feb 24, 2008
Mike,
The reserve price at the previous auction was about 10% of the previous ( last ) offered price.
Some auction, in my opinion are total scams. The auction makes it`s money from a listing fee paid by the seller. Waste of time and money.
Now US homes may change their ways, each home reserve is different.
The Best Home auction I went to was
http://www.hudsonandmarshall.com/
12/8th &9th of 2007 Mesa convention center. They auctioned off 200 REO properties. I was there. Most of them were sold at auction, without a reserve. The AZ Republic, reported 75% sold. Sorry to qoute the paper.

http://www.azcentral.com/arizonarepublic/business/articles/1…

Which is huge.
Depending on where you are looking, the savings were average 30%. up to 50% in Arizona city, way south outlying areas. The savings were huge.
Rember that these are Bank Owned Homes. Buyer Beware!

H & M are returning to have a 600 plus REO auction in late April.

As for U.S. Homes, I have a feeling that they may be more aggressive. 20% Maybe?
They may actually have some no reserve.

There is risk, however when done correctly there is great reward.

Good Luck
Patrick
1 vote Thank Flag Link Sun Feb 24, 2008
Mr.P, Other/Just Looking in Arizona
MVP'08
auctions were a great way to save a buck but lately have become overpriced. does anyone else agree?
0 votes Thank Flag Link Sun Aug 28, 2011
Is there anyway to find out what bank is auctioning off a house on-line and what the reserve is? When bidding on listed house and the reserve is met can the seller's still take offers on the house?
0 votes Thank Flag Link Sat Jul 31, 2010
Regarding all the negative remarks about auctions, consider this. It is estimated that 3 out of 10 properties sold by 2010 will be by auction. You can review the news in Santa Barbara at one of our auctions on my website at http://www.timesaverauctions.com/new/homepage.html . The highest price that was ever brought by anything of stature was most likely brought at auction.
Web Reference: http://www.resourceaz.com
0 votes Thank Flag Link Fri Mar 7, 2008
Ok, here's the deal about an absolute auction (no reserve) and a reserve auction (min auction requirement). Unless you have a property that is in fact a unusual property that will bring many interested bidders you should reconsider the auction route. If you hire an auction company and want them to due a reserved auction you automatically loose 50% if not more of your potential bidders. Why would they show up to compete for a property that they know the buyer is going to get what they want to get anyway? It's not an auction anymore but more of a ad to buy to a reserved (asking price) property. Auctions dont work that way! In the event of an auction for real property if the auction is absolute meaning the property brings what it brings regardless of cost, the buyers will flock. If it is an attractive enough property the bidders will start to get into competition mode againes other bidders. The bottem line to a successful auction is this: Everyone wants to get a good deal but no one wants to see someone else get a better deal. So the auction beings! Ego and pride and money put them all in a ring that last about 2-5 minutes. I am an auction specialist. Call me if you have any questions about auctioning your real estate. Free call and free advise!
Web Reference: http://resourceaz.com
0 votes Thank Flag Link Fri Mar 7, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer