Auction is one way to acquire a home. Reno is not having the same issues with foreclosures that Las Vegas is having. Most of the foreclosures that I have seen in Reno go to the court house steps for a bid and don't receive any as the lender is asking for the full amount of what is owed on the property. You might do better looking at REO's instead which is real estate owned by the bank. This is the last stage of the foreclosure process when the bank actualy takes title to the property. Don't hesitate to give me a call if you have any questions. 775-530-1728

All good points here. Be prepared to do a fair amount of "waiting" if you pursue the short sale properties as well. If you want to get a free list of Reno area foreclosure and short sale properties, see the web reference below.

Normally in our area auctions create a higher price tag than making a lower offer. A real estate professional can work with lenders and justify a lower price. At auctions people get excited and tend to raise the price. I receive lists of all preforeclosures and foreclosures. Right now is a great time to buy but remember that to receive the greatest equity you need to commit to holding the property for 5 years

There are so many ways to purchase a property, auctions being one of them. Short Sales, foreclosures, REO are other options. However, all of these listings fall outside of the traditional transaction escrow most people know. They are a challenge and not the type to pursue for all Buyers. And, not all are "deals". However, they can be a worthwhile purchase if your timeline will accomodate their lengther process. A Buyer must educate himself or herself prior to entering into a Short Sale transaction. I believe that many Buyers become frustrated or confused with these kinds of purchase because they did not learn or were not told ahead of time what to expect. A Realtor with experience in Short Sales can detail for you all that is involved. If you pick up a copy of the current Realtors Real Estate Directory (usually found outside Supermarkets and Banks) on page 11A you will see that there is a Free Foreclosure/Short Sale class being held in Reno on Saturday, March 15, 2008, 1pm. It will be held at The Resort at Tanamera beginning at 1pm, 900 South Meadows Parkway off Double R Blvd. in South Reno. There is no charge to attend the class but you must pre-register. At the class, one of the presentors, First Centennial Title, will detail the differences and similarites of the escrow process when it involves a Foreclosure or Short Sale and third party approval. REO properties will be explained as will pre-foreclosures. The sole purpose of the class is to educate the Buyer on these transactions before a purchase offer is made. You can pre-register to attend by calling 1-877-733-0509 ext 8628. All attendees will be given a list of some Short Sale/Foreclosure/REO properties currently availble for sale in Reno/Sparks. Sellers interested in pursuing the possibility of a Short Sale for their property should also consider attending. Once you learn, you will know what to expect. then, you can consider the value of these listings to you.

FORECLOSURE REALITY CHECK.... The only "sellers market" in america is the foreclosure market. Don't expect any deals from a foreclosure as the bidding process brings 20-30 people to bid on almost every deal. A deal that was already priced at market. For government foreclosed homes, by law, they have to be priced "at market".

The REO manager has a short list of "cash/close in 2 day buyers", they always get the first right to bid. Then they have to wait for the "public auction" Which drives up those prices. After a 30-60 day period. Then the REO picks the best bid. Sometimes, only sometimes does a REO manager take a property directly to a buyer he knows peronsally. Why should he, he has a bunch of people bidding and driving up the prices.

My REO manager friend likes to joke about all the "first timers" who continue to drive up the bid when they don't hear anything from the bank. Every time I see the "how come I haven't heard from the bank about accepting my foreclosure bid after 30+ days" on trulia, I have to let out a chuckle because he's so right. For those newbies, this is real. They know that when you don't hear from them that a large percentage of people drop a second or third offer higher than the previous one. **WARNING, YOU ARE BEING TAKEN ADVANTAGE OF HERE**

You want a deal on a property right, everyone wants that.... So the moral of this story is:
1. the 60 days you have to wait to hear from a REO, you could have made 2 or 3 better deals with a property that has been on the market for a long period of time. Any realtor can help you drop a crazy offer.
2. You are attempting to make a deal in a house covered in a cloud of bad energy, don't be surprised when it rubs off. Personally I stay away from these for this reason entirely.
3. One way to get a deal is dropping a hand written note on ANY house in a neighborhood you want to buy that says "my girlfriend and I want to buy a house in this neighborhood and yours looks cute from the outside. Do you know anyone that is looking to sell?" I always get responses, better prices and positive energy into the home.

I did quite a bit of research on this subject recently.
My impression - is that auctions are best left to experts who can draft a check on the spot for property.

I think there's much easier property to obtain, sometimes at a better price - through short sales and REOs.

Then again - what do I know? :)

There was one auction in the Reno area in April and the next one is scheduled for September. If someone is interested in receiving the list of properties that will be auctioned prior to the actual event, let me know your e-mail address

In Las Vegas, Bank Repossessed homes (REO) are being sold at an average of 15% to 20% market values. Market values are calculated based on current market conditions. These discounts vary by area, and/or Zip codes. Some being higher than 20% but never lower than 15%. Agreat time to buy. "You do not wait to buy Real Estate, You buy Real Estate and then WAIT" write me an e-mail if you would like to know more about Las Vegas Market. (hanss@cbvegas.com)