Real Estate Auction Rip-off?

Going once, going twice, sold! Real estate auctions are becoming a popular way for foreclosures and other houses to change hands, especially in areas of the country hardest hit by the real estate crisis. But in some auctions, when the gavel comes down, the bidding isn't over: Bankrate.com explains.

Category:

News & Politics

Tags:

• Real
• Estate
• auction
• rip-off
• scam
• economy

[LuJackCity1964]

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[DwiteTheSpriteKnight]

Why bother going to an auction if that's how it works.

[Nerdicusable]

@raywhitemackaycity

Yes, yes, America sucks. That's the mentality that is causing so much hate in the world. How about instead of thinking of everyone as a separate entity, i.e. "my country vs your country", just categorize everyone as a human being.

[Fyeagass16]

Its Stupid

[raywhitemackaycity]

Luckily in Australia, all the terms & conditions are read out & must be placed on display prior to the Auction. So we don't have this 'escape-out clause'. This is a legislation problem ! Our Auctioneer's in Australia, arent what I would consider doddy in any way either given the amount of legislative knowledge they must know, & on-spot (unknown) checks they also undergo as well. USA - you need better Real-Estate Legislation! It's as water tight in down under !

[HunterMann]

I think if I was there and had the winning bid, I'd then call out "Everyone here, you are witnesses to the auctioneer ending this auction, declaring my final bid as the winner." Then ask the auctioneer to state right then & there that I had in fact won the house auction. I think if you did a background resume check on most auction people, they had probably been swap meet sellers in the past. Don;t let the tuxedo fool you, these guys are just lowlife crooks with bow ties.

[MyAuctioneer]

I so agree that many Auction companies mislead uninformed buyer/bidders. All auctions in the U.S. are considered to be 'reserve' or with a 'minimum selling price'. An unscrupulous auctioneers will use the terms 'No Minimum Opening Bid' to mislead the buyer... the opening bid and the 'reserver' are two different terms. I'd suggest that buyer only attend auctions that state "ABSOLUTE AUCTION" - will sell to the highest bidder regardless of price. Don't waste your time - report to attorney general

[auctioneer1366]

@LordBwithU This is true!!! Please be sure to make sure that the auction is advertised as ABSOLUTE or not.

[auctioneer1366]

@akivjen This is true in your instance. The auctioneer should have told you at the time of sale. He should NOT have taken your money as a deposit! This kind of action is the very thing that gives us other auctioneers a bad name. I hope that you don't let this get you down from buying at auction., Auctioneers are supposed to give an opening statement at time of beginning the auction, as well as a reputable auctioneer will be on top of his game and know before the gavel falls if it can sell.

[LordBwithU]

No kidding Dumbasses! You have no business bidding if you didn't read the fine print. There is a difference between an Auction and an Absolute auction!