Auctions - What OUR LOCAL NEWS is Reporting

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Real Estate Broker/Owner with Crown Key Realty, Tracy & Mountain House Real Estate 01490605

I know, I know I've blogged about this before, but I"m really not sure consumers are getting it.

This is what the Local News reported about an auction that happend tonight in Stockton, CA. 

Hundreds of homes were sold tonight at an auction held in Stockton.  Homes were auctioned off for as low as $95,000......... the banks are so deparate to sell these properties that there is NO OPENING orauctions in Tracy CA MINIMUM BID!  (Keep that in mind)  THEN was the disclaimer, isn't there always a disclaimers when it's "too good to be true?"  The disclaimer stated... that although there was no minimum or opening bid if the FINAL BID was too low the bank could and most likely would reject the offer!

Now, think hard about this..... think really, really hard... how is that ANY different than making an offer - ANY OFFER on a home.  Either the seller, in this case the bank, will accept or they won't.  WOW -- this just does not seem like rocket science to me.  

Bottom line, it's a marketing.  100's of people view the home, many show up to bid on the home,  but not all the people who win the auction will be able to buy the home, because the bank won't accept the offer.   

So the moral of the story - why compete with 100's of people for a home you like.  Call a good REALTOR, go see homes, find one you like and make a realistic, if not slightly low offer.  Your chances are better that you'll buy the home of your dreams are incredible. 

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Rainer
40,953
Frank Jewett
tech4REpros - San Jose, CA

Susan, banks are playing it cute here in Santa Clara County, too.  Similar gimmick with $1,000 starting bids but only 2 out of 60 or so actually "sold" to top bidders.  The last laugh is on banks who are chasing the market down and discouraging buyers from participating in future auctions.  I posted earlier today about local agents who have stopped showing short sales because banks simply string them along with extension after extension.  Who told banks they could sell real estate?

Frank

Industry: Are Lenders Dragging Their Heels On Short Sales?

Nov 16, 2007 01:45 AM #1
Rainer
12,803
Steve Jacobs
Lyon Real Estate - Lincoln, CA

The auctions have been good to the mortgage brokers that they hook up with.  Think about it.  Hundreds of willing buyers starving for a great deal just prequalify with our preferred lender and bid away on your next great home or investment.  Really its like ebay, rookies get sucked into the bidding war and either bid to high and could have actually received a better deal working with a professional agent or they win the bid and think they got a steal and then the fine print gets them where it hurts, the wallet.  Charging 5%-10% auction fees and other fees that could have been negotiated had they been working with an agent.  Auctions like short sales can produce good deals its just that they are few and far between. The best bet is to find a Professional Realtor that can filter out the bad show you good and help make buying a home an experience worth repeating.

Steve

Nov 16, 2007 02:12 AM #2
Rainmaker
187,920
Christina ONeal
At Home Real Estate Group - Ripon, CA
Realtor - Ripon California
whoo hoooo, wonderfully put....thank you for spelling this out.  I think potential buyers need to hear this.  Thank you Susan, your realtor friend, Christina Oneal
Nov 16, 2007 04:30 PM #3
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411,313
Susan Goulding
Crown Key Realty, Tracy & Mountain House Real Estate - Tracy, CA
Northern CA - Tracy & Mountain House Real Estate

Frank - better question who on a bank staff has ANY real estate knowledge?  or how about ... Who wants banks to sell Real Estate?

Steve  - ABSOLUTELY!  Get a professional REALTOR to help you navigate the real estate market.

Christina - yes buyers need to hear this... but are they listening?

Nov 19, 2007 12:38 AM #4
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Susan Goulding

Northern CA - Tracy & Mountain House Real Estate
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