Quote:
Originally Posted by Tron_fdc
That's the whole point of it though. It's no different than ebay; I get involved in bidding wars all the time because it's something I REALLY want. From a selling perspective, having your wife chirping in your ear that she really really needs those granite countertops is a good thing.
Anyways, I'm going to list a rental property pretty quick to see where the market is. I had offers on it 4 years ago, so I should have a good indication of the market value in comparison to 2008.
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In a sellers market an auction style sale is most certainly a good way to squeeze extra money out of buyers and avoid conditions the sellers do not want to rep or warrant . If buyers are going to be stupid enough to get into a bidding war then more power to the seller. The problem I have with sellers is what they do when the market isn't as hot as they hoped.
I don't want to put words in AMG_G's mouth, but I think that the point of how shady the bidding war strategy is relates to what the seller does when things do not go according to plan and they do not recieve more than what they were hoping for. I've heard countless stories of sellers making a 'teaser' list price well below market value in order to try to incite a bidding war, recieve bids above list price but below what they deem as market value and then instead of accept any of the offers just pull the property from the market and try again months later. Effectively wasting everyone's time.
I think if you're selling strategy is the bidding war and it blows up in your face it's unethical and pretty shady to walk away from offers above your list price. How would you feel if you went to a car auction, bid above the reserve price and every other bidder and didn't walk away with car because the seller wanted more than your bid?