Auction.com identifies itself as a "Market Validation Program" (MVP). MVP is just a label to disguise a strategy to drive up the real estate market.
This potentially benefits most everyone EXCEPT the buyer (although they hope to convince buyers it is to their benefit otherwise the strategy fails) and tax payers.
It breaks down as follows;
-Buyer's potentially loose the advantage of low competition by competing in a broader buyer base and are encouraged to bid against themselves. As for the MVP service's so called "definitive decision date", it as NOT a sale date but only a deadline for whether the offer will be approved by the lender.
-Lender potential benefits: The MVP service provides a way to potentially inflate the selling price of short sale properties.
-Agents potentially could be eligible for higher commissions.
-Sellers may appreciate a quicker sale and a pause of any foreclosure action.
-Community potential benefits: Potentially higher sales prices would lift the "fair market value" and the local tax base (thru increased taxes), which can benefit local schools and infrastructure within the community.
Bottom Line: No, I would not recommend this to a friend
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