Be Careful Of Kentucky Real Estate Auctions.

How can a Auction company have a buyers bidding AGAINST EACH OTHER, however they are bidding on DIFFERENT PIECES OF PROPERTY!  Does this seem corrupt or border line fraud to you?  Read for yourself and decide.

Before you go to a Kentucky real estate auction, you really need to read my opinion first.

Normal home real estate auctions are a great resource to potential investors, first time home buyers or even new home builders looking for a good flip.  I'll even say that normal land auctions are a great place to find property as well.

MY MAIN POINT!  I went to a real estate auction the other day south of Louisville Kentucky.  The auction was set-up like this...and it is going to sound confusing, but I'll do my best.  There was 150 acres for sale in 15 different tracts.  They auctioneers were using a computer software program to make things "easier".  At any time, potential buyers could put tracts of land in a group and bid on it at a per acre price.  Ultimately, this is what happened.  There was an old time farm there and wanted to purchase the entire 150 acres and began bidding on the farm at $800 per acre.  Several other bidders were going against him and took it up to $1,200 per acre.  Guest what!  The other bidders were interested in a 1 acre piece of land.  Of course they were willing to pay much more per acre than the old timer farmer wanting to buy the entire chunk of land.  Ultimately, they were bidding on 2 different pieces of land.  To me, in my humble opinion, this is a form of fraud.  This is putting a bidder willing to pay a total of $6,000 for a piece of property against a bidder willing to pay $175,000 for the entire chunk of land.  Do you think this is right or wrong?  Doesn't this border fraud?  Read more about this topic on my Louisville Kentucky real estate website.

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