Auction homes

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jyeh74

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What are the reasons people do auction homes other than a quick sale?

I saw one today and thought the price was low.  The reason is they are doing auction sale.  If the price doesn't come back favorable in an auction, does the seller have to sell it?  i.e. can they start it at a certain price (like $699k in this case) and not sell it, unless it bids for $850k?
http://www.redfin.com/CA/Irvine/59-Sparrowhawk-92604/home/4687864
 
Homes not owned by the bank are not real "auction" homes.

Usually the fine print says that the winning bid has to be accepted by the seller.

This type of "auction" process is usually done because the sellers don't want to deal with their home being on the MLS for an extended period of time (only 1 Open House) or they think the "auction" atmosphere and initial low list price will drive up the offers.

Only a few I have seen use this process have actually sold for a "winning" bid. Others end up delisting and relisting as a normal listing later.
 
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