Don't Counter Your Own Offer at Auction

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Don't Counter Your Own Offer at Auction

Aaron Norris
Lender · California and Florida · Member since 2008 · 319 posts · 194 votes

Dear Investor,

I just wanted to let you know of an important development. This is extremely important if you have won bids at a Hudson and Marshall auction this week or are planning on bidding at the auction this weekend.

We were the winning bidder at the Hudson and Marshall auction on seven houses. The auction company had countered our offer on five and rejected the other two. We refused their counter offer in each case and stuck with our original winning bid.

On one particular property in Riverside, Hudson and Marshall countered our winning bid of $112,000 at $139,500. We held firm at $112,000. Hudson and Marshall got back to us today and accepted our original winning bid! We also know this has happened to a few other investors that we spoke with today.

This makes me very happy, not just because of the profitable deal but it signals the capitulation of the lenders. The auction produced multiple 60% deals. I think that trend will continue. The fact that the lenders are learning they better take the final bid is very exciting. FINALLY!!!

I wanted to let you know this information in case you are attending the auction this weekend. From what we've heard of the many days of the auction so far, the audiences have shrunk and the majority of the bids are lower then they have been in the past.

If you win, expect to get countered. If you get a counter, don't take the bait!

Have a great weekend,

Bruce Norris
The Norris Group

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  • Michael Shadow
    Investor · Bellefonte, PA · Member since 2008 · 1k+ posts · 88 votes
    18y

    Thanks for the tip Bruce, I have been thinking about attending some auctions to see what some of the properties are going for. Many of the auctions in our area have a reserve price set which is already above what I am willing to pay but there is another auctioneer that is doing absolute auctions.

    Thanks,

    -Michael

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  • Stephen McKee
    Specialist · Riverside, CA · Member since 2008 · 382 posts · 72 votes
    18y

    H&M seem to be the best one. One of my clients bought 2 at the last one and they were at a huge discount. Same game, do you want to raise your offer buisness, we refused, original offer was accepted.

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  • Todd Bayer
    Flipper/Rehabber · Riverside, CA · Member since 2008 · 44 posts · 26 votes
    18y

    I wanted to go to the H&M auction so badly, but unfortunately, due to my lender taking a little longer than promised, I wasn't able to go. I suppose having the worst bronchitis of my life didn't help either. I waited since November '07 until now only to miss it. I agree with Stephen above, H&M seems to be the best auctioneer out this way -- if only they'll start with the absolutes.

    0Reply
  • Kevin Yoo
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    18y

    That is good news, Bruce. I attended several of your lectures and you talked about going directly to the lender and buying properties at discount. Are you doing that as well and if so getting the lenders to come down to your level of price for your homes?

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  • Shari Posey
    Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
    18y

    Aaron,
    60% is close to their starting bid amount in some cases...did you get some deals close to the min. bids?? I'm wondering if its even worth going to the auction if my max is close to their mins.

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