Thursday, November 15, 2012
Are the banks doing sealed bid auctions
I just noticed a new trend with bank foreclosures in my St. Louis market, maybe you've noticed it in your market?
When a foreclosed property first comes on the market, the listing agent puts in the agent remarks that no offers will be reviewed for the first 7 days.
As you can guess, the goal is to get multiple buyers competing in a "highest & best" situation and I don't think it's a bad strategy. It creates the urgency and competition that can help the bank get the best price.
In thinking about it, I realized this is exactly how a "sealed bid" auction works. It may be a little less structured, but the concept is the same. Get as many buyers competing before a given deadline to produce the best price for the seller.
As always, every time I see sellers moving towards the "auction" concept to sell, no matter in what form, I'm grateful. It truly is the best way to market and sell real estate.