Public auctions

[Wayne Igo]

At a foreclosure public auction there is usually an opening bid. Lets suppose a property is going up for auction at a starting bid of $87000. Repair costs are say mostly cosmetic at $3500 and the ARV is $160,000.00. Clearly, there is a deal here but only if the auction price is not too high.

My question is, on average, how much above the opening bid (if there is one) on a percentage basis, can one expect the winning bid to be.  I know it "depends".  But I would really appreciate any comments from those with auction experience.

Thanks

[Arlan Potter]

Not able to answer. In my opinion most house auctions that are close to move in ready, sell way too high at auctions. No room for investors because an end buyer will probably buy it and they will pay too much. The deals are usually in the "dog" properties.