I was in naples fl this past week, noticed a property listed on auction.com for 125,000. Similar properties in the neighborhood seemed to be selling for 300,000+. Went to the open house, hoping for a potential sweet deal.
Talking to the listing agent, said it is a short sale, he had two previous contracts on it that fell through.
Had said a couple weeks ago he presented the bank with an offer for 325,000 he expected them to accept, then last minute they decided to list it at auction.com to try and get more money.
He said in order to buy it, the offer would have to be better than the one currently on the table. While I was aware of the games played by the auction companies, I was surprised at the the "list" price vs the amount it would take to have an offer accepted. Interesting.
This is a game being played by NationStar. Once they get an offer, they list the property on auction.com for three auction cycles to see if anyone outbids their retail buyer. It's a way to use us RE investors to do their appraisal for them, and a total waste of our time.
Banks are like investors, they want all they can get when they sell.