More background info on the question I asked before.
Compare to the listed prices of on-market houses in the same community, the house could be somewhere between 235-250K. But it was on MLS for three months, asked for 23.9K before this auction. I chatted with two agents, and they told me that there is not a big margine between their final sold prices and listed prices, maybe 5%. They did see some salers accepted offers 10-15% below listed prices, but they are rare.
This house will be on acution on this Friday. I called the auctioneer and was told that there is not reserved price for the auction, but the saler has to prove the bid (to me, this says that the sale has a reserved price). At the end of auction, the high bidder need to put 5% of bidded price down, then wait for prove of the sale, if the saler declined the bid, bidder will get 5% down payment back (the process may take two months or longer). If the sale proves the bid, the bidder has to close purchase with 30 days. The bidder needs to pay the bid price, closing fee, and 5% of bid price to the auctioner as well. It seems that the properity still owes state tax, the auctioner said that the saler will pay the tax before its closing date. Buyer will get a clean title.
I asked the auctioneer who owns the property. But they refuse to lease the info. Then I did more search on internet, and found that Bank of American owns the house, and lists a price of 224K on their website. At mean time, I found that the bank owns quite a few forclosure houses in our area, and put them on MLS for sale. I am wondering how does Bank of American names their sale (listed) prices for these foreclosure houses? Is the market value the main factor or is the amount the previous resident owed it the main factor? If you offer a bid 25-30% below its listed price (224K), will I have a chance to get the bank to prove the bid?
Thank you!
