You’ve heard about real estate auctions and you may be wondering if this is a good way to purchase your next home. Some people have had a successful experience…some have walked away with what they thought was a great deal! Others have sorely regretted the experience. I recently went to a real estate auction with one of my clients and I was greatly surprised. Here is what happened.
We arrived about 10:00 am. There were four huge buildings and a large tent outside. The auction was going on simultaneously in all the buildings. (and tent). The spotters were communicating the bids to the auctioneer via walkie talkies from each building. The properties were viewed by the audiences via big screen monitors and speaker systems simultaneously each building.
Before the day of the auction my client and I had gone to look at several of the properties that he was interested in. Most importantly, I had talked to a past client of mine who told me that his sister had worked for the auction company. She had hired him & several others to bid. He was paid a $100 each day. He was given a list of properties and told to bid on them if they didn’t reach a certain price. He was a shill. These people are hired by many of these auctions companies just to make sure that nothing is sold below the minimum that the seller wants for the property. I don’t know if all auctions operate this way but how can you know?