Today is Thursday. 7/14/2016... A bidder at auction today was prepared to buy a home in a secluded canyon location in Palm Springs. This home, on a large corner lot, has charm and quiet to go with scenery and location. Market Value of $525,267 was matched by a similar amount owed, if not more, on the 1st & 2nd loans. The 1st lender foreclosed and took it to auction with an opening bid of $362,100. They were owed over $400,000 but chose to discount with a "Dropped" or "Specified " Bid. This is what we look for when we are placing bids prior to auction... a property with the features we want, with the potential for a lower opening bid to be announced at auction. We then set our bid amount and be ready to walk away with the ownership of the property.
In this case the buyer was obviously ready to spend around $400,000.00 on this property. But when the bidding started he or she only had to say... "and a penny..." So the bid was $362,100.01
Sometimes this type of great low bid starts a torrent on counter bidding. Up.. up... up... until it final culminates in a bid amount closer to market value. Sometimes the bids go up in large amounts. Sometimes the bidding goes up in small amounts. And sometimes.. like this time... You hear nothing but the gentle desert wind... And the Auctioneer says..." Going".... "Going"... "Sold!"