I attended my first Real Estate Auction in Lincolnwood, IL by Williams and Williams. I arrived early to preview the home before the Auction. The home is new construction and consists of 8 room, 4 bedroom, 2.5 bath. The original asking price for the home was $999,000 and on the auction date the opening bid price was $100,000. Needless to say there was a large crowd in the home on the day of the (25-50 people) auction. There were some people represented by agents and some were not. Those individuals who were planning to bid on the home had to pre-register by giving id, filling out a form, and were given a auction number to raise during the auction.
I started to talk to several people who attended the Auction and we quessed amongst ourselves what the final bid price would be on this home. I guessed the price would be between $500,000-600,000. When the Auction began it started with a frenzy. It did not take long for the bidding to go over $400,000. When the price started to creep up to the high $400,000 there were fewer buyers interested. Finally, the last bid came in and it was $515,000. Not bad for a guess..right.. well not really and here is why... the auction was not considered and abslolute auction. In other words the final bid was still subject to the sellers approval. I called Williams and Williams the day after the sale and found out the final bid was not accepted by the seller.
Final notes about this auction: This home was on the market for 445 days. It had an upaid mortgage balance of $826,000 according to the tax records from the MLS. The average price of a home in Lincolnwood, Il is $537,148
It appears that bidders were anxious to buy this home and bid on emotions and if successful would not have gotton a great deal. I am curious what the seller is going to do now that it did not accept the bid.
Comments(3)