No reserve, no minimum online auctions of condominiums. I'm not sure I'm in the market for a condo, but I am always interested in making a profit. It took me a few minutes to figure it out, but here's the gist of the deal.
A developer or realtor puts a condo up for auction on iBidcondo and the website sells virtual "seats" to interested bidders. The total price of all the seats sold is supposed to equal the price of the condo itself. The average auction seat price is $100 and the number of seats sold will be determined by the property’s list price. For instance, a $400,000 dollar priced property will have 4,000 seats sold at $100.00 per seat. A specific auction only happens once all seats have been sold.
The highest bidder, regardless of price, wins the condo. The "majority" of the money paid by the bidder goes to a registered charity of the bidder's choosing.
They have had one auction so far, a $690,000 condo at the Star Riverside complex in Austin sold for $87,000. The next auction takes place on July 27th, which is the same day that ABC is going to do a news story about them.
It seems to me, that even if the retail price of the condo was double or triple the actual value, $87K was a steal. I don't know squat about real estate as an investment, and I can imagine plenty of pitfalls, but it is an interesting idea.