Your listing is more likely to have an effect on the auction than the other way around.  All attendees at the auction will know that there is an alternative to make an offer on next door and the final bid is unlikely to exceed your asking price.

And in the end the second place bidder will be calling you right after the auction.

The auction promotion will also bring much more buzz and traffic to the whole condo, likely elevating the value of all of the units.

On the other hand, if the neighboring condo is flawed and does not sell or sells for a bargain price, then you may need to do a lot of promotion to differentiate yours from theirs.

Appraisers tend to look at what they refer to as "normalized" sales in a community. If the autioned condo unit is an anomoly, they will discount that sale. If more units in the condo are distressed sales than not, they will factor that auction unit into their appraisal.

It shouldn't have much effect. Look for other comps to justify sale price and true value. Many times the auction properties need a lot of work.

  I like the answer from Bob Crane , and the answer from Nina Hollander 

Won't be in the MLS as a Comp

I would think it all depends on which one sells first, then the unknown final sales price may hamper things.  Appraisers I would assume would take into consideration when determining value that one was an auction, most likely cash sale, versusone on the open market with a traditional sale.

It might. 

Maybe a benefit and maybe a burden. Is it an absolute auction? If the sales price does not reflect the value of other comps it won't be considered. As for the public, maybe yes and maybe no!

Jeff Pearl  and Michael J. Perry have your answer. 

Appraisers should ignore as they are not considered arms length in my area. In my area they do not sell quickly, too much of a hassle. 

In a non-distressed market, it's not a comp nor a factor.

It depends if it is a foreclosure or if bank owned and they are looking to liquidate. First i look at condition. Then i look to see if there are any other REO homes. If bank owned is predominate, it will affect value greatly. If it is the only one, if it is in poor condition, then when it sells it may not even affect the value of your listing. 

Depends on how they compare.

In terms of the final sale price, you'd find out as offers came in whether or not having an auction listing next door would have an impact. 

As for appraisal impact, I think it depends on two things. First is the sale timing. Will the auction even be completed/recorded before the other unit is being appraised?

I also think it would depend on the appraiser. I would assume appraisers look at the type of sale - auction and foreclosure properties are typically sold at a discount; I'm sure that would be part of the equation if used at all.

Bob Crane nailed this one!  I agree, I don't think it will have an impact since it is a distress property.  It will definitely bring more attention to your listing.  Good luck!

Yes, a negative impact will be there...

Praful,

Both Nina Hollander and Bob Crane gave you great answers. A

I would not leave anything to chance. I would get all the information about the other auctioned property along with other recent comps in condo. It may or may not impact my listing but I would be prepared with information for potential buyers and appraiser to differentiate my listing and prepare seller for possible negative impact.

It depends... on the condition of the units for example. But the auction could actually bring a sale.

it should not...it's a distressed sale...

It all depends. If the two are both equal to each other then they may each have an influence on the other

No! In my area, buyers hate auctions and aucion property is typically in terrible shape as well. 

Appraisers do not use these as comparables so, it should only help send buyers your way!

I don't think it will have an impact on the appraisal. Liking what Bob Crane and Nina Hollander say

Foreclosures do create a negative impact.

Its like having 4 shoe stores at an intersection corner. Anyone wanting shoes will visit one of the stores and purchase. 

Odds are that it will negatively affect your listing.

That's totally up to the Sellers Praful Thakkar .

I think that Nina Hollander and Bob Crane have hit your answer in a nutshell... good luck on the listing... :)

Stuff happens. 

Time will tell. 

I agree with Gary Frimann on this.  Typically an appraiser will not use an auction sale for comps. The likely buyer for the auction will likely not be the target buyer for the non-auction home.  

Analysis of the data after both are closed my put some light on the impact. No way to definitively say one way or another. 

It may affect the price, more likely that it won't since it is not in the MLS.

Bob Crane has a good answer. -K

it's been my experience in observing auctions that people tend to overpay.  One recently happened down the street from my office for 1.1 million.  I think it's really worth about 800k

It depends on the market and the circumstances of the auction. You might be able to get it eliminated as a comp. 

I believe this depends on the selling price for the condo. The auctioneer may use your listing as the base price they are willing to let the property sell. 

that depends on when the auction is and what the auction price is

Doubtful - I sell a lot of condos every year and auctions have yet to impact the sale value of them

The increased traffic the auction property brings should work in your favor as long as you're not overpriced. 

I like Bob Crane's answer the best.

Yes, it will certainly impact the sale of your listing. Only time can tell whether it will be positively or negatively.

Depends.

Appraisers will not ignore it; they cannot. Never know, might get bid up.

it could go either way and it may be your listing may dictate the price.