Going once!....Going twice!.....SOO!...No it`s not.

Asked by Mr.P, Arizona Sun Oct 28, 2007

The Following is written in the description and remarks of a active listing in the ARMLS.
Disclaimer: I don't know this guy, never met him. I have no bad will towards, seller, agent , or Broker.
I just want an opinion for future refference.
*** AUCTION OF SPECTACULAR WATERFRONT PROPERTY IN *** ONLY AVAIL FOR INSPECTION DURING OPEN HOUSE SAT & SUN, NOV 3RD & 4TH, 10AM - 5PM. BIDS RECEIVED UNTIL 5PM SUN, NOV 4TH. Note: Highest Bid subject to Seller Acceptance - All Offers & Acceptance Non-Binding Unless Reflected in Written & Signed Contract. Call Listing Agent w/Questions ***
The Facts are that this home has 177 days on Market. Original list is $379,900. Just Yesterday The Listing price was reduced from 349K to 199K, and the description and remarks were changed. My question is can we actually do something like this? Is it legal? Merriam-Webster says nothing about "Highest Bid subject to Seller Acceptance " Myself, I have never found it healthy to P.O.
large groups of people.

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5
Lloyd Fox, , Phoenix, Scottsdale, 85254, 85255, 85258, 85259, 85260, 85020, 85018, 85014, 85032
Sun Oct 28, 2007
Patrick

It's a way of selling a property. I believe we should have an auction area of MLS to clean things up a bit, otherwise why don't we all list everythng for a buck and play the eBay game. We'll just call and tell them they haven't hit the minimum bid yet when they send in their contracts. It will generate interest and showings. The real question remains as to whether it will really help sell it at numbers the seller and bank(s) can accept. The sad part is it hurts pricing integrity and value perceptions in a community.
1 vote
Patrick Harf…, , Gilbert, AZ
Sun Oct 28, 2007
Patrick,
Like you, I am skeptical of what is going on here... Desperate times call for desperate measures, but this might not pass the ADRE "smell test"...
1 vote
Anna Goodman, , Phoenix, AZ
Sun Oct 28, 2007
I think auction can be a great way to move property in a down market. It is important to do research on the action company you are dealing with and of course read the contracts. You can sell a property at absollute action or subject to seller acceptance or impose a min bid. As long as everyone is aware of the process, I say go for it!!
0 votes
Diane Glander, Agent, Spring Lake, NJ
Sun Oct 28, 2007
It happened in my hometown 2 years ago. The township was auctioning off 3 lots. The high bidder was a man who had multiple lawsuits with the town from prior construction jobs. The town did not accept his bids. The lots still sit there, and I don't know what's happening. I know this is not the same scenario, but apparantly sellers CAN reserve the right to accept the high bid.
Web Reference:  http://www.dianeglander.com
0 votes
Sylvia Barry,…, Agent, Marin, CA
Sun Oct 28, 2007
Hello Patrick:

As we know, there are more auctions being conducted lately. Regardless of the history of the house (whether it was priced at certain price, lowered, etc), from reading what you quoted above seem to me it's fine; but I am not an expert in this - the famous disclaimer.

Basically, people have a concept of what an auction is, everything has to be in writing and in contract, the seller can change their mind and there is probably a specific price range the seller has in mind before they will sell the house.

They probably want to make sure there is an inspection period just like the normal contract once it's accepted, etc.

I wonder if there is something talking about the commission is based on the actual sale price and that it could be higher or lower and the split between the two sides - kind of like short sale and this is probably one of those. Also, will the commission be built in the sale price or not?

As this is on ARMLS, your MLS probably will come up with rules pretty soon to address that, if not, you might want to suggest that.

Just my gut feeling, again, not knowing everything, it's hard to say definitely.

Sylvia .
0 votes
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