I get calls and emails asking about the homes listed in the MLS for one dollar. People either assume it is a misprint and ask what the price is, or they want to buy the home because it is such a good deal.
Currently there are 42 such listings in our MLS. Kind of deceptive because the seller is asking for more than a dollar. These homes are being sold by auction. Every home listed in the MLS must have a price.
The most common kind of auction I see for real estate is the reserve auction. The seller reserves the right to reject any and all bids. Sometimes a minumum bid is published and at other times it is not.
I have attend these auctions. Sometimes they auction off a few homes at a time, and it doesn’t take long. When I bid is accepted, a purchase agreement is written. The buyer must make a non-refundable deposit of between $5000, and 10% of the purchase price.
Homes to be auctioned are sometimes put on the MLS so that they can be easily found. Bidders have the opportunity to see the home and inspect it before the auction.
It is alright to ask about these homes, but I figure if I spread the word maybe it will clear up some of the confusion. The email I go Tuesday evening made me smile, the sender said: "if it is really only a dollar can I buy it right now? " . . you go! 🙂
Related posts: The Auction