Real Estate Auctions

Bob,

I have not been to a front steps auction but I have been to bank foreclosure auctions weekly lately and they appear to be decent deals but no fire sales.

Take care!

RJH

If the home had issues that the bank or seller did not want to deal with...or disclose...it would be a good idea to sell it this way.

Quick closing, no contingencies, certified cash down payment, on the day of auction, most times for 10% of the purchase price.  We had one that the original owner refused to vacate.  It took them 2 years to have her removed from the property.  All that time, they held the winning bidder's deposit.  You really need to be very cautious when you are asked by your clients, if they should become involved with these transactions.

It's a Good Life!

Fran

 

 

Success with real estate auction depends ENTITELY on the property. Uniqeness and desirability are required to move a property for market price or higher!

 

Someone did that 3 houses down from my mom's place, HUGE banner and ballons for miles - but they didn't advertise it untill a week before the auction. They got 7 or 8 people in there anyway, started the bidding at $300k (median neigborhood price is just over 200) - and 5 of them promptly stood up and left. After 5 or 10 minutes of silence they came down to $298k. Funny story to my Mom and I, but probably pretty annoying to the people who took their sunday evening off. But the funniest part - the owner was an agent! Go ahead, blame THAT one on your sellers.

Intersting post.  I had looked into working for a Real Estate Auction company before hanging my license with Re/Max.  It sounds like a good way to gain interest, lots of frenzy, etc.... But I couldn't get past the 10% buyer premium and the fact that all the qualified buyers were on their own to get an inspection done before bidding.  I mean five or more people paying for an inspection?  It seemed like it would have been easier to just get one inspection done for everyone to view.  Oh, I didn't mention that the seller had to come up with 5k or so to get the property marketed.  Maybe different companies are different but these were all the requirements of the company I interviewed with.

I do like the idea though that it was something different in a tough market.  Creating a frenzy and getting people excited seemed cool.  I mean I have been known to go a little crazy at the end of an Ebay auction and there is a whole theory around "auctions" and who buys at them.

In any event, the auctioneer should have at least come around and let the neighbors know what was going on.  1., maybe a bigger audience would have showed, 2., to let people know not to panic, etc.. that it was just another option and 3., so you know that the SWAT TEAM WASN'T RAIDING YOUR NEIGHBORHOOD! :O)

Cristal