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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Depends on market, type of property, # of postponements, etc. Posted by Ward-CA- on April 25, 2002 at 6:37 AM In Reply to: how much do owners get at the auction? posted by Greg - CA on April 24, 2002 at 8:47 PM : Ward, : What can the owner expect back (overbid) from the auction these days? (San Diego). I'm talking about an owner with substantial equity.Say for example there's a $200K house, and he only owes $100K. : From what I've heard it will get bid up to 80% which means the owner would get the extra $60K. : But I've also heard that there is great risk that the bidders will form an alliance so that that the bidding stops at just over the initial bid. : The reason I ask is this: When I negotiate with such an owner, I'd like to be able to tell him what to expect. I'm concerned that if he can actually get 80% of value just by letting it go to sale, he might not want to take my offer for less. : Greg =•=•=•=•=•=•=•=•=•=•= Greg, Yes, frequently there are cliques at foreclosure auctions amongst competitive bidders who know each other fairly well. What throws their plans off are the independent amateur bidders who show up and aren’t part of any cartel. Such amateurs blow the bidding wide open and away we go to the 80%–90% bidding range in a seller’s real estate market. Amateurs show up in force for good, clean homes (in good, clean neighborhoods) that are coming up for sale for the first time Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : What can the owner expect back (overbid) from the auction these days? (San Diego). I'm talking about an owner with substantial equity.Say for example there's a $200K house, and he only owes $100K. : : From what I've heard it will get bid up to 80% which means the owner would get the extra $60K. : : But I've also heard that there is great risk that the bidders will form an alliance so that that the bidding stops at just over the initial bid. : : The reason I ask is this: When I negotiate with such an owner, I'd like to be able to tell him what to expect. I'm concerned that if he can actually get 80% of value just by letting it go to sale, he might not want to take my offer for less. : : Greg : =•=•=•=•=•=•=•=•=•=•= : Greg, : Yes, frequently there are cliques at foreclosure auctions amongst competitive bidders who know each other fairly well. What throws their plans off are the independent amateur bidders who show up and aren’t part of any cartel. Such amateurs blow the bidding wide open and away we go to the 80%–90% bidding range in a seller’s real estate market. : Amateurs show up in force for good, clean homes (in good, clean neighborhoods) that are coming up for sale for the first time : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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