Last week I had the chance to go to an auction with clients. I had sold them a house a couple of years ago and the lot next door to them was available for sale. I had done a lot of research with another buyer in that subdivision and the room was full of excitement.
I think my clients were hopeful of a different outcome. They thought since the lot was mostly a wetland and there was one small building section on 10 acres that it would be within reach at $45,000.
Not so, the bidding on the first choice went for $100,000 plus a 5% buyer's premium. The second bidder didn't want to pay that price either so it went back to the bidding on the second lot and it sold for $85,000 plus the 5% buyer's premium.
That buyer only wanted one lot so a third was available and it sold for the same as the second one.
The irony is that the buyer of that lot may not have seen it or know that a road will take a portion of the lot under eminent domain. It would be better not to get in the heated battle of an auction, but that is what the auction company counts on.
I receive calls or e-mails all the time asking if the home listed in the MLS will really sell for $1,000 as the late night infomercials seem to say. In most cases, in my experience they don't sell for much less than they would have if exposed for their proper price in the MLS. I complete some research and relay what that price would be and the buyer usually doesn't qualify for that price range.
My best information is to seek out a referral to a good, solid, full-time loan officer and get qualified for your loan. Then, contact a full-time, experienced, honest Realtor and ask them to show you what you can afford and buy the best house available.
If you need help in the Boise Metro area of Idaho, call The Tim Burroughs Group at Keller Williams Realty-Boise at 208-409-7653 or e-mail at Tim@TimBurroughsGroup.com.
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