Fake Auctions?

Hi Barbara,

Thanks for your post. Can you elaborate on why you would not bid if the reserve is not disclosed? Sometimes we won't disclose the reserve because we really don't know if it's too high or not and don't want to scare buyers away. If the reserve was too high; often we see the sellers still accept the high bid, even if under their reserve. I've seen it happen a lot. What do you think?

Thanks,
Linda

Hi Endea,

I agree with you that reserve auctions are necessary in some cases - but shouldn't be discounted by bidders because the reserve is confidential. Absolution auctions mean selling to the highest bidder regardless of price. Advertising the word "Absolute" has specific legislative meaning; abuse of the word could land someone into hot water. My take on "absolute auction after $XYZ" is a misrepresentation of the word. Just my 2 cents.

Thanks,
Linda

Thanks for your comment Rosario. Guess I've seen enough reserve auctions to know that buyers could even get a "steal" but they just have to show up. Sellers are most ready for closure on auction day.

Linda

Hi Endea,

On the aspect of how often and when do you have the property available for previews - it's an interesting discussion. We've tried many different ways for our auction properties. And there really is no rule of thumb because so much depends on the property. Realize that every auction company's goals is to get qualified bidders and the most bidders possible to participate in the auction. It's super important to have a positive enviornment on auction day with it feeling like the place you really want to be because it's fun, edgy and surprising. It's not a correct statement that those companies that hold the property open only for 90 minutes prior to the auction don't sell a lot. In fact, there's good reason for this approach. Usually, the truly interested and qualified buyers are going to show up for that 90 mintues.  Buyers are used to being able to conduct the transaction on their own time. However with an auction, it's all about seller's timeline. We've found that holding more previews over a longer time has in fact hurt the auction rather than helped it. I was a non-believer until I ramped up my own statistics.  I know it may seem unbelieveable that 90 minutes prior to the auction is adequate, but it's sometimes an awesome strategy. To have many people going thru a property at one time, inspectors crawling over each other, creates part of the auction enviornment that makes these successful.

As to "absolute after $" - that is probably an illegal / misleading advertisement as I'd mentioned earlier.  Love the idea of a discussion on it.

Again, thanks for your comment post.