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Anointedrive…, Home Buyer in Florida

what about the homes that are being put up for auction starting at $1.00

Asked by Anointedrivers, Florida Tue Mar 25, 2008

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Most properties will have reserves--a minimum bid necessary to buy the property. Sometimes these reserves are made public; sometimes they're not. There is such a thing as an absolute auction--no reserve--but even then the properties won't go for $1.00. Sure, they'll start out there. Then they'll quickly rise.

It varies, of course, but between the reserves and the bidding process, many/most properties that are sold get sold for 75%-95% of what they'd sell for if a Realtor had listed the property. Then you factor in the buyer's premium (typically 10%), consider that auction properties are sold in "as is" condition (so factor in another 1%-5% for paint, carpet, or more substantive repairs), the quick closing required for most auction properties, and so on, and what it comes down to is that finding a bargain at an auction is far more difficult than you'd imagine.
0 votes Thank Flag Link Tue Mar 25, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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auction not a good deal
its not true
silent bidders
bid up the price
maybe you save 10-15% of already too high retail price
then you pay 10% comission to the auction company
in my opinon
beware of auction

anyways

good luck
0 votes Thank Flag Link Tue Mar 25, 2008
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