REO Auctions Attracting Competing Bids
November 11, 2019
Share of REO Auctions with Competing Bidders Rises to Highest Level in Last Seven Quarters
Three out of four bank-owned properties that sold at online auction in Q3 2019 attracted competing bids from at least two unique bidders, according to an analysis of bidder behavior on the Auction.com platform.
The analysis was based on data from more than 38,000 bank-owned (REO) homes sold between Q1 2018 and Q3 2019 on Auction.com, which has 5.2 million registered users who are potential bidders. Sold properties were considered to have multiple competing bids when at least two bidders bid on the same property during the same auction event. Over the course of multiple auction events, 93 percent of properties received bids from multiple bidders during the quarter.
The analysis also showed an average 6.3 unique bidders and an average of 24.0 bids for each REO sold on the Auction.com platform in Q3 2019 — up from an average 6.2 bidders and 23.7 bids per REO sold in the third quarter of 2018.
The 76.3 percent competing-bidder share for REO auction sales stands in stark contrast to multiple-offer activity in the retail housing market. Just 11.1 percent of offers submitted by Redfin agents faced competing offers from other prospective buyers in September — up from an eight-year low of 10.4 percent in August but still down from 41.3 percent a year earlier, according to the real estate brokerage
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