Home Buying in 95678>Question Details

Hilary, Home Buyer in 95678

How do I find out when Real Estate auctions are going to take place for Roseville CA area?. Can?

Asked by Hilary, 95678 Fri Jul 11, 2008

anyone attend and can you get a list of the properties that are going up for auction?

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6
Hi Hillary,

Just like the agent below answered there are no greta deals at the auctionsand they usually charge a "buyers premium" which is usually 3% of the final sales price.

I belive that you can do better in this market working with a Real Estate Profesional. It would be my pleasure to meet with you and find out what your needa are. My office is located in Roseville jsut behind the new Fountains Shopping Center. I have been helping home buyers and sellers since 1982.

I can be reached @ 893.6884 be sure and ask about home scouting that brings homes directly to your coputer daily . .

Thanks
Mark Koumelis
2 votes Thank Flag Link Fri Jul 11, 2008
Hello Hilary. There are several larger auction houses and you can just go to their website and request a catalogue for their next auctions. They usually cover several areas. Below is a link to the website of one of bigger auction houses for the Sacramento area. I attended one of their auctions a few months ago and found that there were no real deals to be had. I was involved in holding two open houses for one of the properties that they auctioned off that day and I knew how much the property was worth. The property sold for $155,000 at auction and there was another property in the same neighborhood with the same floor plan that was listed in the MLS for only $120,000. The condition of the $120,000 house could not have been worse than the condition of the house that was auctioned off as that house had been vandalized and needed a lot of repairs. If you consider buying at one of those auctions, I would recommend that you do so with the help of a real estate agent. The auction house will pay a 1% commission to real estate agents and it does not come out of your pocket. You have nothing to gain from not having an agent assist you because whether or not you have representation does not affect the winning bid. I would also highly recommend that you only bid on homes that you were able to inspect during the open houses that are usually conducted a few weeks before the auction date. There is no inspection period when you buy at auction. While you can get financing, if you change your mind and cancel the agreement, you'll lose your deposit. Please keep in mind that only the hard to sell properties go to auction. Most of these properties were marketed through the MLS before they ended up on the auction block and there's a reason for that. Good luck to you.
2 votes Thank Flag Link Fri Jul 11, 2008
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
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Hilary, did you notice how all of the answers to your question were provided by realtors....... And they all discouraged you from buying it from the auction. Instead they're recommending that you purchase through one of them. Interesting.

I'm a real estate investor and I've purchased homes at these auctions. I've walked away from 10x as many as I've purchased. But the ones I've purchased have been 30-40% below market value. The trick is trying to determine what that market value actually is. The process certainly requires plenty of due diligence. Former owners may punch holes in the sheetrock, rip out the appliances. Most certainly suffer from general neglect.

I also find it interesting that the agents are all railing against the auction houses for charging a 5% fee.....that's typically at least how much a seller is going to pay to have their house sale consummated. Oh, and even though the realtors tell you that the sellers are paying for that service....its not true. Approx 75% of the commissions are passed on through to the buyer through a higher selling price, based on empirical studies.

Anyway, I'm a year and a half late on this comment, but posting for the benefit of others as well.

Best of luck.
1 vote Thank Flag Link Thu Dec 10, 2009
HI HIlary,

One of the largest auction houses around is REDC. They have a website where you can sign up and get the schedule of auction in the Sacramento area. But talk to your agent and see if you can get a good REO deal. For me, this is still the best deal, you have no pressure, you can think about it and you do not need to bring a cashier's check that can easily be liquidated if you do not follow the parameters of the auction house.
Best,
Laarni






Good Luck,
Laarni
1 vote Thank Flag Link Fri Jul 11, 2008
I just went to an auction seminar for Realtors. Like the other answers, the auctioneer (who is also a Realtor) agreed that you won't get a real deal, that the homes at auction are sold for 85-110% of market value. The buyer also pays the "buyer's premium" when you buy the house that adds to the sales price. They do have an inspection date and time that you can do inspections, but that's money out of pocket even if you don't buy that home. If you choose to go to an auction, I'd bring a Realtor with you, and make sure that you have a really good idea of the market value of that house before you bid too high. I'm not sure if you are actually talking about this type of auction, or if you're asking about a Trustee Sale, which is sometimes called an auction, but is sold on the steps of the county courthouse. These "auctions" are becoming a thing of the past, but still happen occasionally. I hope this all helps! Good luck!
1 vote Thank Flag Link Fri Jul 11, 2008
Hilary, Most of the auction companies are nationwide and post auction dates online. Hudson & Marshall is a great company. The best auctions of coarse are absolute when the higest bidder will win the property even if the bid is $1. Find out what the reserve is before you get your hopes up.
0 votes Thank Flag Link Wed Oct 22, 2008
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