IN A BUYER'S MARKET, SOMETIMES SEEING IS BELIEVING, REAL ESTATE AUCTIONS

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Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

BUYER TO AGENT:  Is this a good time to buy a home?  I've heard that there are some really good buys in foreclosures, auctions and short sales.

AGENT:  Could be.  But, foreclosures, auctions and short sales might not get the best home for your family in the location you need.  Think about what you really want to buy for the long term. 

BUYER:  O.K., but show me all of the foreclosures, auctions and short sales first.  I'm sure I'll find a good one.

AGENT:  How about this foreclosure?  It's priced about 5% lower than other homes in the neighborhoodd.

BUYER:  Are you kidding me?  There are no appliances.  The landscaping is dead.  I can see the high water mark in the basement.  Do you know how much money it would take to put this home in shape to live in?  What's going on here?

                                                                                                                                                                                AGENT:  We'll go to the auction for this one Tuesday. 

BUYER:  Are you kidding me?  The agent had the house listed for $492,000 but the auction started at $700,000.  You showed me the comps for $690,000.  The people are still living in the house.  What kind of "auction" is this?  What's going on here?              

AGENT:  How about this Short Sale?  It's the only one in the area of your children's schools. 

BUYER:  Are you kidding me.  The comps on this house are $425,000 and the thing is listed for $499,900.  The owner is so far behind they might as well let it go to foreclosure.  What's going on here?

BUYER:  Is that all there is? 

AGENT:  What about this new listing in your price range.  It's in the right school area.  I looked at it last night  and it's got everything you want. 

BUYER:  O.K.  We'll look, but I want a good buy. 

Courtesy:  Homefinders.com

 

 

UPDATE:  04/14/2008.  AUCTION MARKETING HAS BECOME MORE POPULAR AS A WAY OF SELLERS TO GET MORE EXPOSURE FOR THEIR HOME FOR SALE.  While many homes listed as "auctions" are not expected to bring far below market, there are some good buys to be found in real estate auctions, particularly the "absolute" auction. 

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Tags:
real estate auctions
foreclosures md
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Comments 69 New Comment

Ambassador
2,278,022
Lenn Harley
Real Estate Broker - Virginia & Maryland
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

Paula.  Agreed.  This is not new.  These things have been around forever and I've gotten calls from "bottom feeders" since I've been on the Internet.  I used to sell HUD foreclosures, but gave that up because I just got tired of looking at overpriced junk.  The HUD program is a scam on the consumer, but they don't know the difference. 

John.  Hardly a day goes by that I don't get a call from someone asking to see foreclosures or calling about a home going to auction that they saw on Homesdatabase.  They are all listed for WAY below market and WAY below what they will sell for.  Most of the auction listings are phony anyway.  The seller is sold a bill of goods by the company doing the auction.  They have a reserve for market value.  You gotta love it.  I don't have a problem with bank owned properties though.  They have already been foreclosed and are sold just like any other home once you explain the additional addendum to the buyers.  

We've always had these properties.  They've just not been featured in the local and national press as they are today.  Now the consumer is more confused than ever.

September 15, 2007 05:41 AM
Rainmaker
162,317
Susan Milner
Cape Coral Real Estate Broker, FloridaFutureAgents
Florida Future Realty, Inc.
Lenn, Yep. Sad. But you know what they say...."if it sounds to good to be true....."
September 15, 2007 10:02 AM
Rainmaker
407,594
Karen Monsour
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!
Coldwell Banker Fort Lauderdale Beach

I really don't think this house is what your are looking for, you don't want a fixer upper, you need to be able to move in in 6 weeks!  But, yes, yes, yes, I really want to see it!  It "doesn't look THAT BAD from the outside".

Ditto Susan M!!!

Price is great! No wonder...no interior walls, just shells of what looked like Wilma went through (and probably did!) no appliance - half a kitchen...AND I WAITED AN HOUR FOR THEM TO SHOW UP!!!

Only to hear a "sigh" and a "I guess you were right Karen!"

C'est la vie!

Karen Monsour, Fort Lauderdale, Fl

September 15, 2007 06:38 PM
Ambassador
2,278,022
Lenn Harley
Real Estate Broker - Virginia & Maryland
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

Susan.  Actually, we've always had the "bottom feeders" around here.  I've never liked working with them.

Karen.  That's about the way it goes.  I also use the term "Money Pit".  It's very effective.

 

September 15, 2007 06:55 PM
Rainer
19,953
Membership Cancelled

Your post really hits home!

September 17, 2007 03:46 AM
Ambassador
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Lenn Harley

Real Estate Broker - Virginia & Maryland
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