When the Philadelphia Housing Authority held its second scattered-site property auction
in December, Ainé Doley went to the sale in hopes of removing a property on her block from the list. Unable to do so, Doley watched as the property was sold for $11,000.
Less than a month later, Max Spann Real Estate & Auction Co. contacted Doley, notified her that the initial bidder had backed out and asked if she would be interested in purchasing the property as an alternate bidder.
“It’s funny because I wasn’t even the second bidder,” Doley said. “There were at least two, if not three [others]. I just left my name because I just had this feeling that no one really wanted that lot… and I was right.”
Robert Dann, executive vice president and chief operations officer of Max Spann, said bidders for some of the other nearly 500 properties sold at PHA’s November and December auctions have also backed out.
“Just a very few [bidders] have attempted to back out so our procedure is that we contact the alternate bidder,” Dann said. He added that the contract is binding, so any initial bidder who drops out loses their full, 10 percent deposit.
“When you’re selling this many properties, it’s not unusual for people to get cold feet,” Dann said