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...
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
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.
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.