Auction in Brooklyn

can you provide a little more info please

http://www.nyc.gov/html/kcpa/html/auctions/auctions.shtml

http://malcolmcarter.wordpress.com/2010/04/26/heres-your-chance-to-bid-on-a-brooklyn-property/

thanks for the info. i see only 4-5 properties in good neighborhoods and the starting bids are not that great to have to deal with auction.

agreed. there are plenty of similarly priced bed stuy multifamilies languishing on the market without having to go thru auction.

How do auctions work? Does the auctioneer try at the opening bid first then calls for any offer?
I haven't seen the properties, but the opening bids don't seem that far from market price. With all the extra transaction costs and the uncertainties of a fast transaction, why bother?

Nothing is sold below the starting bid. I'm not sure what you mean by extra transaction costs that result from an auction, maly, though do be aware that these are all-cash transactions. As for pricing, in my experience, it is impossible to know the fair price without inspecting a property and also conducting a comprehensive analysis of comparable properties.

from my understanding, the openning bids are the minimum. at least that's how it usually works.

this auction is for estates and is handled by a different body of the gov't.

In my experience, the Public Administrators do not offer dramtic bargains, at
least on the 1st time a property is offered for sale.

True, they do not always offer "dramatic" bargains, but they: 1. limit the competition at or below market value; 2. may offer a bargain; 3. may have prices driven up even, or especially, when they begin at a lower starting point. I've never bought at such an auction and don't intend to (partly because I don't want to buy anything), but my view is that if nothing is ventured, nothing is gained.

I am not familiar with this type of auction, but I have attended real estate auctions in other states, and antique auctions in the city, and in every case there was an auction premium (typically 10-15% of the bid). Is it not the case in this instance?
I would expect a discount for a property that can not be financed, in as-is condition, with extra risk involved. If the cost is at market-price, why bother?

What happens if no buyer meets the minimum asking price?

Do they withdraw that offering and go back to the seller and see if he is willing to bring it out again later at a lower minimum?

thanks.

I tried to get the auction results from the Brooklyn Public Administrator to blog about them but ran into a stone wall today, about which I've written.

In answer to Maly, all the terms are available on the Public Administrator's site and do not include a buyer's premium.

In answer to Graffiti Grammarian, the original owners are dead. The city is the seller. Unsold properties will be put up for auction one more time at, I think, the same starting bids and then turned over to a real estate broker if no one buys such properties.