I keep seeing this on MLS...what does it mean?

I'm new to this home buying thing, so excuse me if this is a dumb question, but I keep reading on the MLS listings "house will be sold to highest bidder on Sunday". For example, here's a listing I was just looking at
HOUSE
Is it a bank auction, or just a ploy to get you to make an offer on the house?

Re: I keep seeing this on MLS...what does it mean?

I think it means they intend to sell asap so they want all bids and will choose from the bids.

And about the reserve...they have an amount that they wont go lower on, that you will be unaware of. So the point is, they want your BEST Offer b/c they dont want to haggle with people for weeks/months.

That is how I interpret that. Anyone else?

Re: I keep seeing this on MLS...what does it mean?

Good interpretation, I would not have thought of that.

Re: I keep seeing this on MLS...what does it mean?

It is a way to try to get multiple offers right away. It does not always work and I have seen houses that say all bids must be in and then a week later they are still on the market with a price reduction. Also you should know that it usually says owner does not have to accept any offers. So even if your offer is at least what they are asking for bids they can turn it down.

Re: I keep seeing this on MLS...what does it mean?

I have seen this on many houses in my neighborhood recently. On MLSLI I guess they are trying to move the houses quick and it's not like the owner has to accept anything below what he wants to get. It appears as if thye list them 20-30k lower than what they should so people with a lower budget think they might have a chance. I don't like it. It appears to be very misleading on all of those ads I have seen.

Re: I keep seeing this on MLS...what does it mean?

There was an open house across from my parent's house a couple weekends ago advertising just this. They took bids during the hours of the open house and then called the highest bidders beginning at 7 that evening to entice people into a bidding war. I don't know yet if it has sold or not. My parents said that they heard from neighbors that the owner is not going to take an offer unless it reaches a certain price. So all those people went to the open house thinking they could get a low price when in reality the owner wasn't planning on taking anything below his desired price. I think it is very unnerving for the buyer.