Large Scale Real Estate Auctions - A Trend For 2008? : The Real Estate Bloggers

Large Scale Real Estate Auctions - A Trend For 2008?

January 8th, 2008 • Related • Filed Under

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Auction_gavelAs foreclosures continue to mount and builders sales continue to slow, the real estate world is facing a tremendous overhang of properties that are on the market. With nearly 11 months of inventory on the market, it is very hard for banks and creditors to sell vacant homes they are in possession of.

What may work to move these homes are the large scale mega auctions that are starting to pop up around the country. Instead of an auction selling a couple of homes in a development as the builder closes out, these auctions have hundreds if not thousands of homes on the block.

Real Estate Disposition Corp is have an 5 day auction in Southern California to capture the excitement that huge groups of people can bring and help get these foreclosed upon homes off the banks books.

The huge volume of homes will allow the auctioneers to market the homes to a much larger population base and get some movement on them. Right now with the inventory overhang many of these homes are just languishing and falling into disrepair.

I will keep an eye on these massive real estate auctions as it may be a new way to get the huge influx of homes off the market and being lived in again.

Related posts:
  1. Australian Rental Market So Tight They Are Looking At Auctions
  2. Even Home Auctions in the Hamptons Are Not Like Anywhere Else
  3. Foreclosure Auction In Arizona Sell 150 Homes, Builder Auction in Oregon 141 Homes
  4. Has Florida Real Estate Hit Bottom? NAR Economist Thinks So
  5. May 2007 Home Sales Figures Show Tough Real Estate Market Nationwide



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There Are 6 Responses So Far. »

  1. Comment by Tony Bauer on 11 January 2008:

    These auctions are a real boon for a lot of home owners who have been forced to short sale or into foreclosure. It gives a home owner another shot at making up for his financial downfall. The real estate agents and investors do a lot of good for the real estate business by arranging for such programs.

  2. Comment by Dimma on 14 January 2008:

    Really true in 2008 the trends for auction is on large scale as buying the home is a big deal for the buyers. so auction is the way to follow.

  3. Comment by Andrea on 15 January 2008:

    Aucitons are a good way to get folks excited about real estate again, however…buyer be ware…properties are sold as is…the starting bids are not always the sellers reserve price…there is a 5% fee added on top of the awarded bid for fees at the buyers expense…if the buyers loan cannot close for some reason the buyer looses their 5% deposit…there are thousands of folks bidding on these properties.

  4. Comment by Richard Merrill, M.D. on 27 January 2008:

    Beware of REDC’s bait and switch tactics. They advertise as an absolute auction, but slip an ADDENDUM into the sales contract which allows the seller up to 15 days to reject the sale after the bid has been accepted on the block. According the the code of ethics of the National Auctioneering Association, in a Reserve Auction, the seller has the right to reject any bid not meeting reserve PRIOR to the fall of the hammer. The REDC practice is legal, but UNETHICAL, at least in Arizona.

  5. Comment by Richard Merrill, M.D. on 30 January 2008:

    However, there is a way to ensure that you are protected when you attend at an auction as a Purchaser. Obtain a full copy of the Contract before the auction, and have a qualified lawyer check it out. Have any nasty conditions deleted, and add any protective conditions your lawyer suggests.

  6. Comment by Bob Martin on 20 June 2008:

    Real success in the market takes time and money. Unfortunately “most people view the market as the place where the miracle of great and quick riches can be performed with little effort”.

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