Home Auctions

by | Apr 13, 2021 | Auctions | 7 comments

We should sell homes via auctions. They are open, fair, and effective.

In Australia, home auctions are the primary vehicle.

Here’s an example of dozens of people standing around in the street to auction a $2,000,000+ home:

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Jim the Realtor
Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!
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7 Comments

  1. lifeisradincbad
    lifeisradincbad on April 13, 2021 at 8:41 pm

    The benefits of home auctions seem clear. If they can do auctions for multi-million dollar artwork, why not $200K-$5M homes?

    Curious to know why you think this approach hasn’t taken hold in the U.S. Thanks in advance!

  2. Anonymous
    Anonymous on April 13, 2021 at 9:13 pm

    When a house goes for more at a foreclosure auction than a highly comparable (identical floorplan, nearly identical location value) brokered house that sold over list & was furnished…

    …the auction house needing at least some work….

  3. andrewa
    andrewa on April 14, 2021 at 3:09 pm

    How do you spot the shill bidder?

  4. JT
    JT on April 14, 2021 at 9:47 pm

    If I were the winning bidder I would have had a hard time continuing to bid based on how the auctioneer provided extra time for the other party.

  5. Jim the Realtor
    Jim the Realtor on April 15, 2021 at 7:17 am

    Yes he did work it hard at the end, but I think his patience with those increased bids in $1,000 increments did tack on an extra $100,000 to the eventual sales price.

  6. Ross
    Ross on April 15, 2021 at 2:19 pm

    lifeisradincbad, a huge amount of fraud and chicanery goes on in the art world, as well as most collectibles sold primarily for status and emotional value. For example, see https://driventoabstractiondocumentary.com

    I see real estate auctions as theater designed to inflate prices by creating artificial urgency, heightening and preying on buyers’ fear-of-missing-out emotions. The same reason auctions are used for art and collectibles.

  7. Jim the Realtor
    Jim the Realtor on April 15, 2021 at 2:39 pm

    I see real estate auctions as theater designed to inflate prices by creating artificial urgency, heightening and preying on buyers’ fear-of-missing-out emotions.

    Hey, nothing’s perfect! 😆

    But buyers would appreciate the transparency – and so would the sellers! The current blind bidding employed but virtually every listing agent in SD County is leaving loads of money on the table.

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