Suzanne Yafet

There are two starting prices, one is the starting bid price that the auction house advertises, and the other is the reserve that the bank who has foreclosed on the property wants. In an auction, the bank's bottom-line dollar amount is not disclosed to the buyers. If that reserve (the bank's bottom-line) is not reached at the auction, the home does not sell.

I would have to know the address of the property and run comparables on it to know what it's market value might be. Unless I have more details, there is no way to know what the home is worth, nor what it will ultimately sell for. In an auction, there is the chance that a "bidding war" will ensue, making it even more difficult to guess.

In the end, it's about what a buyer is willing to pay. Do your homework before you go to the auction and decide in advance how high you are willing to bid. Don't let emotions get in the way, and if you're lucky, you might just score a great deal!

Good luck!! Let us know how you fared at the auction! - Sun Aug 31 2008, 18:56

I actually would also consult a good real estate attorney to review your loan/closing documents and advise you as to what (if any) legal ramifications there may be. Before taking any actions, please do what you need to do to make sure you're getting expert advice. If you'd like referral to a few real estate attorneys in Tucson, please contact me. I'd be pleased to provide three names of attornies you can interview.

Best of luck!

Suzanne Yafet - Tue Jul 29 2008, 14:05

Good morning! HOA fees/dues run the gamut and are always dependent on the community and the services the HOA performs in that community. For example, some HOA's are small, single-family-home subdivisions. There, the fees may be under $20/month and cover common areas/supervise landcaping and try to keep the individual homeowners from not maintaining the front yards (aka "weed police").

This goes all the way up into $100-200/month for townhome and condominium HOAs where the dues include such items as road maintenance, gate maintenance, roof, termite, water, pool/spa maintenance, etc.

So, the answer is: get the CC&R's from the HOA. Get a copy of the disclosures and review carefully.

Please don't hesitate to contact me if you'd like more detailed information. - Sun Jul 27 2008, 06:20

The most important component to this is: We have a buyer pool that remains unchanged, in good markets and bad. At the right price, when buyers see a perceived value, they will buy. I have had my best months in real estate lately, now that prices have reached a level of that perceived value.

Great discussion and great comment!! - Fri Jul 18 2008, 12:06

There are many factors to consider, as we all agree, but the one factor I think that has not yet been addressed is that real estate is a commodity. The price is based not on an arbitrary number the seller (in this case, the bank/lender) sticks on it, but rather, the fair market value of the home based on current market conditions. If I go into a department store, and a pair of shoes is priced at $100, I can either buy the shoes or walk away. A home's value rises and falls based on economic factors (supply and demand).

Did you have an appraisal done? Was the home's value higher or lower than the original asking price of the home? What is the home's market value today? Did you use a Realtor to assist you or did you go buy the home without representation? If you did use a Realtor, did they run market statistics on the community to assist you in determining the home's value, and an appropriate offer?

Regardless, it sounds like you've bought a beautiful home! Enjoy it and savor the fact that you did apparently get a very good deal!

Best of luck,

Suzanne Rothman Yafet, Associate Broker
Coldwell Banker Residential Brokerage
520.603.2505
suzanne.rothmanyafet@azmoves.com - Sun Jun 22 2008, 16:59