Updated almost 7 years ago on . Most recent reply
Went to my 1st Real Estate auction.
I’ve gotten to the point where I am ready to purchase my first property. I’ve researched the market, completed over 50 property financials to get comfortable with it, and have read numerous books.
I WAS NOT READY FOR WHAT I WITNESSED!
I found an auction about 2 miles from my house. Went to the house, did my inspection, and ran the numbers. Perfect! The numbers work!
Even with 50 ppl there i still felt good. Until the bidding starts.... The house was valued around $80k. I knew what my high number was, and that was surpassed on the third bid. Crap! I stayed to see what happened. Once the bidding hit $90k I left.
Why (and this might be my inexperience) would someone bid so much higher than the valuation?
Most Popular Reply
That happens a lot with auctions. Sometimes people get caught up in the auction and winning. Other times to auctioneer has a bidder driving the price up. Some auctions even say they have that option to bid themselves.