Thanks, the reason I ask is I just went to Clearwater beach recently to a high end area called Island Estate’s with the intent to purchase a winter home for the wife and I. The house up for Auction among 8 other properites I had interest in was a 3800 Sq foot home 4/3.5/2 on 80 foot of deep water canal that was worth (by CMA’s) $1.27 Million.
Of course I was hoping to get it for a lot less! Since taxes are so HIGH in Florida and insurance!
The Bids reached $892,000 and stopped and was not sold because it had a sellers reserve.
I was amazed that there were well over 100 bidders there who must have had experience doing this because they did not over bid.
It was actually my first action but I really like the idea and want to go to more after some due dilligence on it and was hoping maybe someone here could share some experiences.
Also on a side note I do appreciate feedback from folks who are full time investors and make their living off of Real Estate. Sometimes you feel really alone out here since I am basically a one man office.
I’d been on couple auctions. You should be really experienced and do your homework because auction house distributed their comparables that were way out of real price. In any case, auctioneers are squeezing a money from you, I kid you not! It was an ugly at some point, likely, my clients got their house at price they wanted. Anyway, there is a lot of gray area. For example, auction house could say or not say if this house has a reserve on it. That also happened with my friend from the office – they thought they won, but auction house announced that had a reserve. Many people heard it wasn’t mentioned before. It is just a warning message about how tricky it could be.