Real Estate Auctions
An increase in Foreclosure activity in any market also results in increased activity for Real Estate Auction companies. Let me clarify a key point that seems to be causing some confusion. When I refer to “Real Estate Auction” I am not talking about the Trustee Sale that occurs when a lender takes title to property because the property was lost to foreclosure. The Trustee Sale is a totally different type of auction and one that i will write a different article on at future date.
What I am referring to is the Auctions that we now see being advertised heavily on television and newspapers. These auctions are offering single family homes and condos at what appears to be substantial price reductions.
These auctions are as a result of the current property being a bank owned listing that has been on the market longer then expected and the bank needs to sell it ASAP. The interesting thing is that these properties have already been available to the public for sale and as a result of them not selling they give the auction company the right to sell them and it creates a big frenzy and many people feel like they are really getting a great deal and sometimes they are but many times the property ends up selling above what it was being previously listed for.
Auctions are not a bad way of buying real estate foreclosures but you will find that you don’t find the true investors buying a large % pf their portfolio at the auctions. You will have a much better chance of getting a good deal on real estate buy doing your own homework and looking to purchase foreclosures prior to them going to auction. Contact me for additional information about buying bank owned real estate in San Diego County.
Please feel free to read our article recently written about different ways to purchase foreclosures. You should also call a local real estate expert in your area that can help you find the foreclosure you arelooking for. We have all the San Diego Foreclosure Information you need if you are looking in the San Diego area.
June 23rd, 2008 at 11:09 am
I am not sure about the U.S. market but the sub-prime is now starting to affect the UK market and prices have dropped 7% this year and the market in Sicily for real estate not great. A bit of a dip but it’ll drag itself back eventually.