reo: Is an Auction a Good Deal?
- 01/14/11 05:20 PM
Many buyers have the notion that buying a home at auction (not sheriff sale) will bring them a rock -bottom price. What they don't realize is that an auction is just a marketing technique used by some agents to initiate a sale. The agent lists the property with an auction company but there is a reserve price requirement that must be met before the property can be sold. So if you thought you could bid $10,000 and win the auction if nobody else bids, think again. The reserve price is usually close to market value. There are usually fees that the buyer … (6 comments)
Many buyers have the notion that buying a home at auction (not sheriff sale) will bring them a rock -bottom price. What they don't realize is that an auction is just a marketing technique used by some agents to initiate a sale. The agent lists the property with an auction company but there is a reserve price requirement that must be met before the property can be sold. So if you thought you could bid $10,000 and win the auction if nobody else bids, think again. The reserve price is usually close to market value. There are usually fees that the buyer … (6 comments)
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