Roanoke, VA · Member since 2016 · 24 posts · 5 votes
Hey guys,
Please bare with me, I'm very green.
I see houses going up for auction, for dirt cheap. The house does not sell at auction, and then, the price is listed at 3 or 4 times the auction price. I see that the real estate company took ownership of the property.
If a 30k pre auction house goes up to 165k after auction, is the house still negotiable at the pre auction price? Will the real estate company consider the old price? Thanks!
Investor · Larkspur, CA · Member since 2014 · 9 posts · 4 votes
10y
What do you mean by "real estate company"?
Sometimes in auctions the "reserve" is not met, then the bank will attempt to put the property back on the market, using a real estate agent.
The price they are asking is usually the market rate or what is at least owed to them. Finding out what that number is helps when you make an offer.
Generally I find that if the party that holds the note is small- like a hard money lender, they want more. If it is a big bank, they will take considerably less. Either way, make an offer that you think is fair and see what happens. You might be surprised.
Investor · Larkspur, CA · Member since 2014 · 9 posts · 4 votes
10y
What do you mean by "real estate company"?
Sometimes in auctions the "reserve" is not met, then the bank will attempt to put the property back on the market, using a real estate agent.
The price they are asking is usually the market rate or what is at least owed to them. Finding out what that number is helps when you make an offer.
Generally I find that if the party that holds the note is small- like a hard money lender, they want more. If it is a big bank, they will take considerably less. Either way, make an offer that you think is fair and see what happens. You might be surprised.
Professional Auctioneer · Baltimore, MD · Member since 2015 · 1k+ posts · 1k+ votes
10y
Not all auctions are BANK sales, we only sell owner ordered or assignment auctions. We don't like to take an auction on for the seller if the reserve is too high, just a waste of time. If our reserve is not met, we continue to market the property as post auction sale, put it on MLS and continue to do all we can to sell the house, often times we'll have a second auction sale.