Here’s what happened . . . - Posted by JoeKaiser
Posted by JoeKaiser on December 03, 2002 at 24:16:49:
Well, we just closed on the sale of the Seattle house a week or two ago, only we didn’t end up doing so with the auction.
It was “interesting” to see lawn chairs on the grass, a dozen or so bidders with $10k cashier’s checks paperclipped to their registrations, and a guy doing the “who will give me?” thing.
The bidding stopped at $172k. With a buyer’s premium, that means they pay around $180 for the house.
With the commission, that means we’d net $164k (next time I’d negotiate that premium/commission thing way down from there).
This was a “seller confirmation” type sale so we could say “yes” or “no.” We left the sale thinking we would accept the deal and just move on. We were into the property $148k and had hopes of seeing $200k as a sales price, so it was a little disappointing.
Just to be sure we drove the neighborhood again, called all the agents who had houses for sale, and asked them to check out the place and let us know if they could do any better. One agent called that very afternoon and faxed us an all cash offer, $175k, no commission. We accepted it the next morning.
I called the auction guy to tell him we had decided to decline the offer he acquired for us (we were obligated to him through the auction only). He failed to contact the winning bidder to advise him the bid was declined.
He called later that afternoon, agitated. The winning bidder had gone to his lender to get his loan started, only to be told someone else had already been in that morning applying for a loan on the very same house. The winning bidder called the auction agent, telling him the whole thing was a scam.
The auction agent called me, “smelling a rat.”
I just told him what happened, as it happened, and felt no obligation to him whatsoever. We both entered the auction arena knowing the ground rules and both accepted the fact that neither of us might get paid.
He said something that made me decide not to use his services again. I had intended to do a half dozen or so to see if it was a viable method of selling. At this point, I’m still undecided.
We did okay for the 10 days work we put into it, and we closed it as quickly as time permitted, so everyone (except the auction guy), including the original seller, was happy.
We could have just listed and probably done better. Probably should have, looking back. Still, I’d like to try the auction thing again. Seems like all those buyer’s with cashier’s checks in their hands have got to be worth something.