Multifamily on auction.com

[Gretchen Roberts]

I got this in my inbox yesterday, a 95-unit, 4 property mutifamily up for auction in my area. Starting bid is $1M. 

http://www.auction.com/Tennessee/commercial-auctio...

I'm just curious about how a property would end up on the auction block, and if by the time that happens it's still potentially a good deal or if no serious investor would consider it, and that's how it ended up there. 

Not looking to buy it, just learning. Thanks.

[Joel Owens]

Auction company will try to bid it up so forget the starting bid. Usually even if it has a winning bid the buyer drops out and then the bank sells it or the seller through a listing broker.

Like anything it is a sales strategy that sometimes works and other times does not.

I generally stay away from buying properties where there are emotional bidders involved. I like to negotiate one on one for a property.