Auctions - Where's the Innovation?

[Roebuck Auction]

Was the third guy in the daisy chain smart enough to drop his bid?

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He could have tried, but we had someone else willing to buy it at the auction price if he did not want to.

 

[SHELLY]

He could have tried, but we had someone else willing to buy it at the auction price if he did not want to.

How do you know his financing wouldn't have fallen through like the other two?

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[Roebuck Auction]

How do you know his financing wouldn't have fallen through like the other two?

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I never said their financing fell through. They just chose to exercise their right of rescission. As far as his qualifications, all the bidders that were at the auction were required to bring a cashier's check to registration. We do not keep the check, it just serves us as a qualifier. The high bidders put down 10% on auction day and the cashier's check is part of that deposit. This particular final buyer was actually a cash buyer.

 

[SHELLY]

I never said their financing fell through. They just chose to exercise their right of rescission. As far as his qualifications, all the bidders that were at the auction were required to bring a cashier's check to registration. We do not keep the check, it just serves us as a qualifier. The high bidders put down 10% on auction day and the cashier's check is part of that deposit. This particular final buyer was actually a cash buyer.

Putting up a 10K check is a piece of cake...getting a banker to approve a loan for a Florida condo is a whole 'nother thing. I'd bet that their "exercising the rescission" was a result of financing falling through. IMO the "cash buyer" was a fool not to lower his bid when you came knocking.

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[elgordoboy]

Was the third guy in the daisy chain smart enough to have on offer a lower bid?

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Thrust

He could have tried, but we had someone else willing to buy it at the auction price if he did not want to.

Mal-parry

How do you know his financing wouldn't have fallen through like the other two?

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Beat

I never said their financing fell through. They just chose to exercise their right of rescission. As far as his qualifications, all the bidders that were at the auction were required to bring a cashier's check to registration. We do not keep the check, it just serves us as a qualifier. The high bidders put down 10% on auction day and the cashier's check is part of that deposit. This particular final buyer was actually a cash buyer.

Derobement

 

[Miss Critter]

Can we get a bit more negative here, guys? If you don't like the auction process, don't participate. Roebuck seems to be pretty straightforward in his/her posts, despite the continual bashing. I doubt many participants at auctions are neophytes in real estate. Certainly no one forces them to bid, or even to attend. I would guess that most recognize the difficulty in obtaining financing today, especially for Florida condos. And yes, there are cash buyers out there, some of whom still wish to invest in sowal real estate, thank God. Granted auctions aren't for everyone, and if you've got a great idea for moving some inventory, please share it with the rest of us, or better yet, start your own company and generate some wealth. Lord knows we could use the economic stimulus.

 

[poppy]

. IMO the "cash buyer" was a fool not to lower his bid when you came knocking.

Roebuck already said there was another bidder willing to take it if he didn't.
These units were a bargain, I doubt if the buyer felt like a fool. Sheesh--I'm done with this negative crap, If you don't like auctions, stay away from them.

 

[AAbsolute]

Can we get a bit more negative here, guys? If you don't like the auction process, don't participate. Roebuck seems to be pretty straightforward in his/her posts, despite the continual bashing. I doubt many participants at auctions are neophytes in real estate. Certainly no one forces them to bid, or even to attend. I would guess that most recognize the difficulty in obtaining financing today, especially for Florida condos. And yes, there are cash buyers out there, some of whom still wish to invest in sowal real estate, thank God. Granted auctions aren't for everyone, and if you've got a great idea for moving some inventory, please share it with the rest of us, or better yet, start your own company and generate some wealth. Lord knows we could use the economic stimulus.

I'd love to see all real estate sales go the way of ebay. You could post the property with descriptions as substantial as you desire. You could make the property available for inspection either fully open or by appt. You could set a "buy-now" price that might serve as the target price which would close the bidding. The recission period would be the last 3 days of the auction.

There's probably a version of this that will be successfully developed. I look forward to it.

 

[AAbsolute]

The rescission period does apply to real estate auctions. It would be nice if we could invite everyone back out to re-auction in these cases, but that is just not practical. What we do is record all the back-up bids. While a back-up bidder is not obligated to buy, they are usually still interested. We actually had a unit last month at The Sanctuary at Redfish that was rescinded and we sold it to the back-up bidder who also rescinded. We finally sold and closed it to the third back-up bidder. While this is not the norm, it illustrates the importance of recording all the back-up bids especially for condos.

What stops a group from making a co-ordinated series of tiered bids to take advantage of recission clauses? I see co-ordinated posts on this message board for example. I'm pro-auction, I'm just wondering how the indusry is dealing with this issue.