My online short sale auction counts down. Have you experienced one?

Janna -- I don't like it for each and every reason mentioned here. I have one coming up and if the sellers are offered, will definitely show them this post.  Unless I get evidence of a more positive experience otherwise, I would likely advise them to opt out and stick with the traditional route....one that we KNOW works.  Good luck with your short sale.

Janna,

I have to give you credit for trying.  Let us know how it all turns out.

The only way I would agree to this. .is that the Short sale gets approved at the highest price and move on!

That is whatr an auction is for. .

to sell it and be done. .

not to try it. .and see what happens. .

 

I would have to see the terms including their intentions in regards to the remaining balance but seems like an interesting idea. 

I agree with Elizabeth #15.  B of A's suggestion that an agent use an outside auction company implies that they don't have faith that an agent can get the job done.  I can't speak for every market, but in Orange County, most short sales draw multiple offers and the properties are in contract within 14 days.  

Why would I want an auction company intruder stick their nose into the process, especially when they get a buyer's premium, raising the cost of the home to the buyer??

I wonder what B of A's motivation is..my dad always said "Follow the Money"..hmmm

Hi - I had been watching for the results however had to leave.  Are you able to tell us if the auction met reserve or what the high bid was?  I see the status as "Bid Pending Confirmation".  

With a reserve it cannot hurt.

Had seen a high end home sell for just under 20 million in O.C., CA using Auction.com, was court ordered with no reserve.

Janna - I'm not sure that based on the comments I've seen above that I'd recommend this to the seller thought it's obvious their decision.

Janna, I have not been involved with any short sale auction as the listing agent.  As the buyers agent, I have used the site www.auction.com quite a bit.  Best of luck with your auction.  I look forward to reading about the results.

This is a new program that they are piloting. You are the first person that I know of who has participated. Please post again to let us know how things end up.

Janna,

 

I doubt that an auction bid for a short sale property will rise to the approved price that a lender will take. If it was that easy, why wouldn’t the lender simply take the lowball offers that we often get on our short sale listings?

 

I have not seen a short sale marketed through an auction company in my market. We do see REO’s sold that way. It appears to be an act of desperation in that the seller was not successful in selling the property as a traditional listing.

 

I have attended an auction. It was fascinating. Many of the properties did not sell because they failed to meet the reserve price set by the seller.

Nightmare from my side. My seller was "strongly encouraged to take advantage of the opportunity" of an online auction. Long story short. Got a buyer,, the auction company middle-manned the short sale negotiations and weeks and weeks later, after the servicer was replaced, the investor denied the "winning bid". And I can't get any usable information from anybody. Next time? There won't be a next time!

Janna:

When did Bank of America start using an auction site like Auction.com?  Good luck to you and your owner. 

Janna, I only have experience purchasing trustee's sale properties at Auction.com, not short sales or traditional sales or any MLS-listed property. Their trustee's sale auctions are similar to how other trustee's sale auctions are run. However, from the comments above, it doesn't seem like their online auctions have good feedback! :)

Leilani

Janna, since we are also in a rural area, I was pretty interested in the concept. We don't do them around here. I am going to reblog it because it is relevant for sellers around here to, to avoid the pitfalls in the concept and implementation. Thanks for your post!

I've had short sale listings with B of A but none using this method.  Good luck to you and your home owner.  Curious to see how things end up.  Thanks for sharing.

Thank you Janna for the update.  I am an Auctioneer and do believe in effectiveness and efficiency of this sales method.  Not all auction companies are the same and it is disappointing that some leave such a negative impression.  I also agree and have issue with online auction transaction fees.  The Auction method can totally be customized to a specific clients situation including buyers premiums.  There are options - seller could pay or split to eliminate or reduce the buyers premium.  Furthermore most Auctioneers want to work with agents both on the listing (it is your listing) and buyer side.  When we work together we are an extremely powerful and knowledgeable team. If BoA thinks the auction method is a good option for the seller and the seller agrees maybe agents could inquire if you are allowed to use a local auctioneer.  Find them on www.auctionzip.com by zip code.  Some states, including mine, require that we are also real estate agents. Sorry for the lengthy response. 

Richard is right. In our state, a short sale property involved in a live auction cannot be listed on the MLS. The agents are cut out of the loop. They want you to show the property for them. The buyers agent only gets 1% according to their website. They say that if the bid is accepted the short sale is automatically approved, but it takes more to sell it via Auction.com since the lender doesn't adjust their net. It just means, the buyer has to pay a 5% premium in addition to what it would be if sold via regular MLS.