Auctions

[aufan]

Anyone know the price range houses have been going at all the aucitons? This seems to be hard info. to find. Would love to see the listing price vs. "sold at auciton" price. Are these real "deals" or just a new marketing trend?

 

[Smiling JOe]

Anyone know the price range houses have been going at all the aucitons? This seems to be hard info. to find. Would love to see the listing price vs. "sold at auciton" price. Are these real "deals" or just a new marketing trend?

The ones which actually sell are typically at steals. However, I don't think most of the properties in this area which are attempted to be auctioned, actually close.

There are quite a few properties attempting to be sold on Thursday. Maybe I will video and youtube the one to which I will be attending.

 

[rapunzel]

What happens at the auctions? Do they have high reserves and just not get any bids? Or does something go wrong between the auction and close?

 

[Capricious]

Unless there is no reserve price, or no minimum bid, you are
probably not going to get a "deal" at an auction.

I am not at all familar with Florida real estate law, but
I believe that usually the lender can bid up to the amount
owed without adding any extra cash. The lender will
take title rather than allowing the property to sell for
less than the lien (usually), assuming it was the lender
that forced the auction

A reserved real estate auction initiated by the property
owner in a slow market is usually
just a marketing gimmick. Back in the early '90s, my then investing
partner and I got stuck on the "downside" of the real estate
boom in Branson, Missouri, and we tried the auction route.

Didn't work.

By the way, "bidders" at these auctions may very well
include people working for the sellers.




Capricious

 

[Smiling JOe]

Unless there is no reserve price, or no minimum bid, you are
probably not going to get a "deal" at an auction.

I am not at all familar with Florida real estate law, but
I believe that usually the lender can bid up to the amount
owed without adding any extra cash. The lender will
take title rather than allowing the property to sell for
less than the lien (usually), assuming it was the lender
that forced the auction

A reserved real estate auction initiated by the property
owner in a slow market is usually
just a marketing gimmick. Back in the early '90s, my then investing
partner and I got stuck on the "downside" of the real estate
boom in Branson, Missouri, and we tried the auction route.

Didn't work.

By the way, "bidders" at these auctions may very well
include people working for the sellers.




Capricious

We aren't there quite yet. Most of these auctions are not forced auctions, and that is why most of them do not sell -- not meeting minimum price. However, there are a few properties being auctioned and bought at ridiculous prices, like the piece which recently sold at auction for $700K, which was under contract early last year for over $5M.That seller paid hardly anything for the property, so she was still somewhat satisfied.

 

[Capricious]

[However, there are a few properties being auctioned and bought at ridiculous prices, like the piece which recently sold at auction for $700K, which was under contract early last year for over $5M.That seller paid hardly anything for the property, so she was still somewhat satisfied]



I don't doubt what you are saying is true, but I suspect there is a lot
more to this story than what is public knowledge.

Regardless, the majority of these auctions (other than an estate
sale or similar) are merely marketing ploys.

There is the occasional exception, but that is why they are
called exceptions.


Capricious