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If people are only paying $100 and they are genuinely interested in purchasing the house, at least 1 person out of the 10,000 in the auction is going to enter a high bid (close to what the house is actually worth). Someone may even go as high as $100 less than what they would offer in a normal offer. You aren't going to get 10,000 people who will submit a bid under $500. When you're dealing with such a large number of people, at least one of them is going to offer an amount that is close to what they'd offer in a normal transaction.
If you cap the bidding at a certain amount, then it essentially becomes a lottery (who is lucky enough to enter the maximum bid first). If you don't cap the bidding, and you're dealing with 10,000 offers, the sheer number of participants will drive the price up to a realistic amount. That's pretty simple economics.
Furthermore, I doubt that 10,000 people would be interested in buying the same house in this market. Nobody in their right mind would pay $100 and submit a bid of $500 because they would have no realistic chance of winning the auction and would simply be pissing $100 away. You'd never find 10,000 people that stupid.
When the auction is closed, and you've sold your house for $493.00, and the auction sold 6200 seats, how much does the auctioneer take from that $620,000. Off the top, they're going to take their expenses--termite inspection, appraisal, survey fees, land transfer fees, title searches, etc. Is there a cap on how much they can charge you for their up-front expenses, do you get an itemized statement, or do they get to charge you the amount at their discretion? And then there's their cut. Because they are in this to make money. Like the auction JustJulia cited, those people don't want the minimum number of bidders to buy seats, they sell seats for $250, charge a 20% handling fee, and even if they only sell 100 seats, that's $50,000 for NOTHING. What's the profit potential for dmccauley's auction house?
The auction wouldn't close only selling 6200 seats if the required amount is 10,000. The price of the home is predetermed... So lets say 500k. Out of the million (100x10k seats) the seller of the home is paid the 500k the taxes insurance, pool etc are all paid out of the million from the sale of the seats. If you bid 63cents and were the successful bidder you just bought a house for that amount. Your out of pocket expenses is $100.63 for a home worth $500k.
The auction wouldn't close only selling 6200 seats if the required amount is 10,000. The price of the home is predetermed... So lets say 500k. Out of the million (100x10k seats) the seller of the home is paid the 500k the taxes insurance, pool etc are all paid out of the million from the sale of the seats. If you bid 63cents and were the successful bidder you just bought a house for that amount. Your out of pocket expenses is $100.63 for a home worth $500k.
I have to ask, D; with all the evidence & facts that several people, myslef included, have presented, and with the evidence being fairly clear that this is AT BEST a lotterry and AT WORST a scam, why do you insist of defending it? What's in it for you?
You are all entitled to your opinions... All though there must be something to it. If you search the internet they are all over the place. I think what makes this one stand out from the others (and makes you all so sceptical) is because there is a home involved instead of a laptop.
You are all entitled to your opinions... All though there must be something to it. If you search the internet they are all over the place. I think what makes this one stand out from the others is and so sceptical is because there is a home involved instead of a laptop.
I PAID ATTENTION becasue it's a house and not a laptop, and I am involved in the sale of homes as my profession. What makes me skeptical is the fairly thorough examination I have made of the facts I have, and the analysis those facts return. It's not a house sale.
All though there must be something to it. If you search the internet they are all over the place. .
That's frightfully naive thinking. Every Christian kid in America (and most of the non Christion one too, truth be told) believe Santa comes down their chimney on December 24th to fill their socks with candy. Must there be something to that too?
I have to ask, D; with all the evidence & facts that several people, myslef included, have presented, and with the evidence being fairly clear that this is AT BEST a lotterry and AT WORST a scam, why do you insist of defending it? What's in it for you?
As I have told you many times Mr. Keegan there is nothing in it for me other then the fact I am interested as a seller. I haven't seen any evidence with supporting facts, other then peoples personal opinions, that its not an auction. I find it very hard to believe that this woman would put her career on the line only to defraud people and lose her reputation in the industry. You stated you contacted her. I am not sure if your questions were answered or not but the ones I asked had been.
As I have told you many times Mr. Keegan there is nothing in it for me other then the fact I am interested as a seller. I haven't seen any evidence with supporting facts, other then peoples personal opinions, that its not an auction. I find it very hard to believe that this woman would put her career on the line only to defraud people and lose her reputation in the industry. You stated you contacted her. I am not sure if your questions were answered or not but the ones I asked had been.
She emailed back to me wtih cutsey little sales phrases. No information. I asked a direct question about how it works, and she told me she'ds get back to me in a day. Still waiting.
You haven't seen just opinions. You've seen a discussion & analysis of facts. And it seems to me that you are simply avoiding the truth those facts present. I can't, for the life of me, figure out why. Perhaps it's becasue selling yrou house in FL has been so difficult to this point. Please, PLEASE, don't let that tempt you into closing your eyes to the obvious truth.
Do this. Since you are interested as a potential house seller. Ask her what happens to you & your house if she doesn't sell enough bidding seats. Do yo have to pay anything in advance? I'm willing to bet she keeps the money, handing out a "credit" to attend another lottery to those who wanted to buy your house. Do you get any of that?
I PAID ATTENTION becasue it's a house and not a laptop, and I am involved in the sale of homes as my profession. What makes me skeptical is the fairly thorough examination I have made of the facts I have, and the analysis those facts return. It's not a house sale.
I worked in an assessors office and it most definetly is a house sale. The transaction is both willing buyer and willing seller. M. Marcus buys the house from the seller. Then the home is sold to the new buyer. Sounds to me that all involved were willing.
She emailed back to me wtih cutsey little sales phrases. No information. I asked a direct question about how it works, and she told me she'ds get back to me in a day. Still waiting.
You haven't seen just opinions. You've seen a discussion & analysis of facts. And it seems to me that you are simply avoiding the truth those facts present. I can't, for the life of me, figure out why. Perhaps it's becasue selling yrou house in FL has been so difficult to this point. Please, PLEASE, don't let that tempt you into closing your eyes to the obvious truth.
Do this. Since you are interested as a potential house seller. Ask her what happens to you & your house if she doesn't sell enough bidding seats. Do yo have to pay anything in advance? I'm willing to bet she keeps the money, handing out a "credit" to attend another lottery to those who wanted to buy your house. Do you get any of that?
Yes its been almost 2 years and as you read from my other post I am out tons of money.
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