Auction deals
I am currently trying to learn the processes involved in RE auctions. I still have to attend my first one (as an investor). Auctions are famous for the “great bargains” one can pick up there.
My question is this: What percentage of auctions do deliver on this promise of “great bargains”?
50%....30%....10%.... less?
For argument sake, let’s define a “great bargain” as something you get for ½-price.
Any other things I should know of?
I'll be going to my first auction next Tuesday (the 4th). I'll let you know what my experience is there. Also, my partner and I have been watching the HUD foreclosure auctions in my area. (A slightly different process, of course). We haven't bid on any yet, but if the subject interests you, I'll be happy to email the "list price" and what they actually sold for during the bid process.
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Ive experience one sale so far. There were supposed to be 18 properties for sale. There were two!
They went for retail price.
There were 50 investors/interested people at the auction. One of the 'old timers' (as he described himself) told me because of the market, more people are at the auctions, and they bid the price up, more than he is willing to pay.
Clint
Hey Woodchuck, I'd be interested in your survey of HUD homes and what they sold for in relation to list price. Thanks! shims@sheean.com
Woodchuck:
It would be great if you could send me the "results" of the list prices vs the actual prices.
Please keep me informed, fia e-mail rudolf.botha1@sasol.com
I decided to post these here so that everyone could see them.
Here are the HUD properties that my partner and I were looking at. This isn't nearly all of them, just the ones thatwe were interested in and I personally found comps for to verify the value. I have to say...the values that HUD listed were right on. Don't know if that's always the case but seemed to be accurate for the ones that I checked out.
21 Battey St
Value=49,000
List=39,000
Win Bid=37,000
201 Alfred Ave
Value=64,000
List=57,600
Win Bid=47,400
492 Moran Rd
Value=70,000
List=35,000
Win Bid=36,500
458 Kraftsman Rd
Value=82,000
List=57,400
Win Bid=43,033
19 Deanview Dr
Value=68,000
List=54,400
Win Bid=45,300
As you can see, there is a very wide range of value vs. sale price. If you're interested in the HUD prop's specifically, I suggest that you check their site for listings in your target area.
http://www.hud.gov/offices/hsg/sfh/reo/homes.cfm
If you choose a few that you "would" want...watch the process and the winning bids, etc to get an idea of how it happens.
Hope this helps!
_________________
Success and $$$ to us all!!
Sonia (Woodchuk)[ Edited by woodchuk on Date 01/29/2003 ]
Thanks woodchuk.
Anyone else with helpfull information for the auction-newbe?
How can I find Comps?
Thanks
Sabrina
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I just found this link tonight. If they cover your area, you should be able to locate comps fairly easily. Of course, you'll have the address and sales price but would have to pull the other details from the deeds, etc. At least you can narrow it down and get a good idea.
http://dowjones.homepricecheck.com/
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