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Updated over 9 years ago on . Most recent reply
Real Auction Sites - with No Fake/Shill Bids?
Are there any legitimate auction sites available on the web, large or small, that do not use fake or shill bids?
Ran into this during due diligence on Auction.com:
Props to Auction.com for making a transparent disclosure and not burying it in the PDF downloads, but seriously??? Submitting fake bids to bump price is legal? Plus charging a $2500 minimum transaction fee?
Didn't see this on Hubzu's site, although I didn't pour through the documents as I did Auction.com's site, so would appreciate some feedback here.
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- Real Estate Professional
- West Palm Beach, FL
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Well, this may all be "new" or fishy to new bidders on these auction sites.
But, it's quite simple, and they all work the same:
The auction co. may bid on behalf of the bank/seller
There IS a reserve, and it is Undisclosed. So no, high bid doesn't necessarily get the property. Hence, why you sometimes see a "No Reserve" advertisement on an auction, when there is Not a reserve price.
If the high bidder hasn't met the Undisclosed reserve, the bank may or may not sell at that price. They may give a counter offer at a higher price.
This has been SOP in the REO auction world for years, nothing fraudulent to complain about. It's how the game is, paly it or not, it's up to you.