June 15, 2010
Land Only Auction
Hello Everyone,
I just wanted to remind you that there is a special auction starting in 10 days for land only property. It will be a great chance to pick up a home lot or a weekend or summer retreat piece of property. Parcels are available in most states. Don’t miss your chance to buy at such a low price. Email me today for details.
March 29, 2010
Is The Pool Of Auction Houses Drying Up?
So we haven’t even completed the March auctions, and already there are another 2776 homes available, in 51 auctions, set for April. The number is just staggering.
At first glance it would seem the number of homes available are shrinking. When I first started investigating this auction, there were typically 4-5 thousand homes available at any given time. So 2776 would appear to be a lot less. However, originally, the auctions were only held every 3-4 months. If you missed an auction date, you would have to wait a few months for the next one. Now, there are multiple auctions every single month. So in comparison, there is actually over 9000 properties available every 90 days. Double what it was a year ago.
While the continuing of this trend has defiantly created its share of hardships for communities struggling with the loss of tax revenue, and the cost these vacant properties bring, there is an opportunity for individuals, as well as families, who otherwise were often priced out of owning a home, by previously inflated home prices. Buying a home from the auction has a multitude of benefits. First, you have just doubled your buying power. Homes typically sell for 50-60% of their previous value. If a buyer is only qualified to purchase a home for say $100,000.00, that buyer is very limited in what they will be able to find in that price range on the open listing market. But that same buyer, can attend a foreclosure auction, and now purchase a home that would be listed for sale for substantially more. Second, this allows a buyer to immediately have equity in a home.When you purchase a home so far below the market value, it comes with built in equity.
March 1, 2010
Foreclosure Auctions
As I sit here writing this entry today, there are currently 3584 properties available for purchase, through just one of the many, Foreclosure Auction Companies. 3594. That is a huge number, and that is just for this month. There will be a whole new list available for next month, and the next month, and so on. These homes need to be sold. The Real Estate market will never truly stabilize until all of these homes have families living in them.
I get asked all the time, “Why can’t I just make an offer through the listing agent for these homes? Does It really pay to go to the Auction?” The answer is yes, you should go to the Auction., and here is why.
When these houses are listed as foreclosures, there is a specific department at the lender who has foreclosed on the home, which deals with all offers that come in. It is their job to try to recover the highest dollar amount they can from the sale of the home, and they are very limited on how much of a reduction they can accept. Once a home is committed to the Auction, a completely different department at the lender takes over. These homes have usually been vacant for a while, and it is the new departments job to get rid of these homes.
The home I purchased, had an offer made on it three weeks before the auction, for $330,000.00. The lender turned it down. Three weeks later, that same lender accepted $260,000.00 from me for the same house. The two different departments have very different goals, and that is why the best deals are at the Auction.
