I Thought That A Reserve Bid Was Already Was A Joke

Category: Finance, Real Estate.

The lenders unwillingness to adjust the prices on their properties is affecting us greatly. A significant number of banks out there won t even respond to our fair offers.

We are getting consumed by all the vacant homes. I understand that they are taking huge losses but its not our problem. They are offering great rates and many other interesting things. The banks are becoming very creative with their advertising. They are starting to utilizing auctions today on their foreclosures a lot more. The boundary s are pretty much limitless.

Auctions have always been a very popular way to sell. If you have anything to sell an auction can be used. They are so simple to setup and finish that you could almost turn your head and it will be over. The simplistic nature of an auction is it s greatest attribute. Just like that you have missed that item you wanted to bid on. I assuming that the lenders are trying to get a higher price than on the open market. Everyday I drive through my neighborhood I see more and more auction signs popping up.

It is true than they can receive a higher price at auction. Auction houses like most business have to get paid for their time. I have seen it with my own eyes people bidding up properties more than they are worth. They usually work on a fixed percentage commission or a flat rate fee. Some of them even have a percentage and fee per winning bid. The typically percentage is around 3% to 5% . When bedding at an auction remember to calculate all of the costs when evaluating your bid.

Your maximum bid should include all your costs like auction fees, and anything other, closing costs you can think of. Make sure to have a maximum bid that you will not pass. I sometimes enjoy reading the small print of various things. One day I picked up an auction booklet and flipped to back. It makes me laugh how many disclaimers there are on everything. There were so many things that made me laugh.

I wish that when I went to an auction I could win a property for the opening bid. In the end I just thought auctions are becoming a joke. I wish that some body could, but even if I was the only one there I still couldn t. The reason why many auctions have such low beginning bid amounts is because they have reserve amounts. Those incredible low prices only exist to drive traffic to the auctions. Which enables them not to sell the property unless you bid the price above the predetermined acceptable price set by the seller. In the front of the pamphlet no where I can find a mention of a reserve.

The only place that talks about reserve amounts is in the small print in the back of their pamphlet. I wonder why? The worst one is that the seller has typically has seven days to accept you bid or not. I thought that a reserve bid was already was a joke. In other words at any winning bid amount it is there decision if you will get it in the end. One of things that I hate the most is wasting my time. I can see that the auctions are in the favor of the seller.

They make you fill out forms then make you pre- qualify to bid. I do think that the experience of an auction should be felt once. If I knew my final bid really meant I won that would be different. You never know you could get that deal.