Are Ten-X auctions sketchy and fake? Very strange on how they work
 

There is a reserve price on each property and there is a "minimum bid" on the site, the min bid was set way below the reserve price and unknown to buyers.  Auction timer would get down to 10 second and immediately the next incremental bid would be placed up to the reserve amount. It seemed unlikely there were that many "real buyers" that were doing it. To me that was a bit odd. I got a call from the auction site listing representative and he told me that it was close and I would be selected as the buyer and - under their terms and conditions - would be able to purchase the property. It just seemed weird I would get a call from the auction site rep telling me that information at the end of the auction undermining the entire process.

Result is WEIRD:  Auction went up from 600K to $1.92M.  Site finally stated that $1.925M was reserve price.  HOWEVER THERE WAS NO BID!!!!!  Seems like a scam.  Should this be reported to PA Auctioneers association and to PA DEPT of State!
[{"id": "hizadre", "text": "I knew somebody who worked at a major online auction house and they told me that the auction company can bid up the prices itself and it is buried in the fine print.", "replies": [], "depth": 1}, {"id": "hj6woaw", "text": "I have bought a number of properties through Ten-X. Pre CoStar, I should add. They will bid up to an undisclosed reserve price for the seller. It is possible no other buyer is bidding. Sometimes there is a lot of buyer action and prices get crazy. Personally, I would set an aggressively discounted price for the asset (remember you're not getting estoppels, DD period etc) and communicate to the auction rep prior to the sale the rough price range I'd be in. \n\nThe auction rep's goal is to close a sale. They're managing seller expectations just as much as if not more than the buyer side. So by giving them a price range you're providing feedback to possibly bring the seller down to you.  During the auction, I'd place a bid and then email the auction rep to let them know it was my highest and best, and why. Maybe others pass me by, maybe not. A number of times the price went up multiple increments past my bid, only for them to come around post-auction and say I could purchase at my bid, either bc another buyer didn't perform or bc seller lowered reserve.\n\nTLDR Don't get caught in bidding wars. Pick a discounted price and go with it. That's been my approach.", "replies": [], "depth": 1}]