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There is a reason these homes are going to auction.

By
Real Estate Agent with Rector Hayden, Lexington, Ky

Today I viewed four homes that are going to absolute auction in the next two weeks. One of the four had been cleaned and some new doors had been hung. The other three were dirty, completely out of date, the yards were not well kept and they had some rooms that needed to be completly stripped to the studs.   This is my first experience with auction properties.  Is this typical of aution properties?  If so, no wonder the properties never sold while on the market.

One can probably assume these distressed properties are owned by distressed owners.  But if so how can they let them be sold at absolute auction?   If they owe money the bank will not let them sell the house at auction.  These are not bank owned properties.

Please help me understand why the owner of these homes did not at least hire someone to clean the property and maintain it so that it had a chance of selling. 

Another thing that was perplexing to me is all three homes were in neighborhoods of homes that had well kept yards and there was obvious evidence of pride of ownership. 

I am looking forward to attending these auctions.  Their listing prices are 110, 115 and 120 K.  Anybody want to guess what they will bring at auction?

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Paul Campbell

The Jubilee Team of Rector Hayden Realtors

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Comments (4)

John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

I attended such an auction recently thinking I might find a bargain. The house was in terrible shape. It sold for $124,000, bought by an uneducated novice who had no idea what it would take to restore the home to reasonable shape. Repaired it might have been worth $150,000, but it easily needed more than $75,000 in work.

Sep 26, 2008 12:14 PM
Sergio Rebollo Jr.
Real Estate TeamMates - Miami, FL

I've gone to auctions with reserves where the bank rejected the offer at the auction and then found themselves having to drop the asking price to below the offered price.

I have found that the smaller auctions (not advertised on TV) are more productive.  You still MUST do your homework before you bid.

Sep 26, 2008 12:21 PM
Freddy Solis
Carrington Real Estate Services - Fairfax, VA
Your Real Estate Coach

I attended one here in DC, all those properties were owned by the bank. All the houses (15) I checked out in the open houses were terrible with only one being in good move-in condition.

Sep 26, 2008 01:24 PM
Paul Campbell Realtor Lexington
Rector Hayden, Lexington, Ky - Lexington, KY
Kentucky Homes for Sale

John, Sergio, Freddy,

 

Thanks for sharing your experience.  I hope to learn enough to know how to help my buyers make wise decisions if they wish to attend an auction.

Sep 26, 2008 01:57 PM