what are the needs to buy this forclosed property?

Asked by Taranehshahlavi, Seattle, WA Wed Dec 4, 2013

30361 ViaVenida propertyCA 92677 what are the rules to place a bid

This question was asked from this property: http://www.trulia.com/property/3138822405-30361-Via-Venida-L…

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Ingrid Ski R…, Agent, Mission Viejo, CA
Thu Dec 5, 2013
To buy a foreclosed property you would go to the court house steps to do this
One in placentia and one in Santa Ana
You would need cashiers checks to pay for the property if you win the bid
There are a lot of people their that do this as their business and really know what they re doing and getting into
Next is the auction type properties on the MLS where an agent would put a property on the market so ridiculous low price that it attracts so many people wasting their time putting in a low offer that never really sells that low
I have has 3 clients go to these type of homes and the line to get in the home is so long they decided not to look at that home as their is so much completion you don't really have a chance
Beware if these types of homes as they are misleading and buyers actually think you can buy this home at that low price and it can seem deceitful

The best bet is to go to the court house or work with an agent who can get you into a home right now
Interest rates will be going up again in 2014 to be 5% and up
The foreclosed homes and short sale are very few in Orange County less than 3%. Most are standard sales
A short sale can be a good property to buy as they can be lower than the standard sale and a bank owned property. Bank owned property are selling like a tandems sale property these days. Banks are smarter about that

Contact me and I can help you get into a place and let you know what the rents you can get Talk to you soon

Ingrid Ski Realtor
0 votes
Trevolyn Hai…, Agent, Highland, CA
Wed Dec 4, 2013
I would contact Greg Glick, he has been in Laguna Niguel for 35 years so is very familiar with that area.
0 votes
Emily Knell, Agent, Huntington Beach, CA
Wed Dec 4, 2013
There are Real Property auctions & bull crud property auctions. This is the latter of the two. A Real property auction is held at county courthouses or the like where homes ARE actually in foreclosure & are bid on with all cash.

This "auction", gets away with, what is in my opinion 'false advertising & misrepresentation", because our MLS system has "auction rules". It is also my opinion that the MLS system & our local & state boards of Realtors should NOT ALLOW this type of practice. If any agent or company advertises a home under "Auction Rules", they are able to get away with this.

I would love to hear from Auction.com & the Realtors who are affiliated with them. When they put a home like this on the market for "From" $200K, there are hundreds of buyers, like yourself that show interest, but can probably not afford or are unwilling to pay 50+% more & all those buyers are ticked off when they learn the truth, yet the affiliates of Auction.com have the opportunity to help those buyers find another property & they probably sit back & make more money off of incoming referral commissions.

I had a buyer recently who bid on a Bull Crud auction & we Were the highest bid. But that price did not meet the seller's reserve price. This is because Auctions attract buyers looking for "a deal", for which, with the Seller's Reserve price & the fact that the Seller is NOT in any kind of Financial Distress or otherwise NOT facing foreclosure, the seller later listed his home, Normally (not auction marketing) & ended up selling the house, in my recent case for near $50K over our Highest Winning bid.

There were some agents in my neighborhood from a very popular firm who tried this Auction type marketing a few years ago. Do you know why they stopped doing it about as quickly as they started???? Because they were seriously Ticking people off & it was giving them a Bad Name in the community.

A side note; Underpricing a home to get attention on a property & get multiple offers is Ok, but only within reason. I feel that underpricing a home like Auction.com does at 50+% less than what current market values are for non-distressed properties is bad. But pricing a home up to 20% below market, that's a bit more 'within reason'.

I had a client call me last week, bubbling with Joy & super excited to have found a Townhome in Huntington Beach saying, OMG this place is only $300K w/ 1500sqft, gated community, fully upgraded, I want to go offer on it right now, this is So affordable for me, it's unbelievable. She was correct in the sense that is Was Not Believable. And, turns out, it's another Auction.com offering.

So, I had to be the one to destroy her day & let her know about 'the hook' with Auction.com & that this property is Not distressed, the investors paid $555K for it, it wasn't selling at $639K, but they're never going to sell it, most likely, until they get between $600-625K. Sounds to me like these investors paid too much in the 1st place. But that's the risk, when buying homes on the courthouse steps at the REAL auction.

Shoot me an email directly or give me a call if you'd like to talk about this further or if you need expert representation to locate another property. I don't look back on this same Trulia posting for Answers or Replies posted after mine.

Emily S. Knell
562-430-3053 c
Realtor Since--- 1996
Realty ONE Group
BRE# 01211967
0 votes
Emily, your very descriptive response is how most of us feel about it. After going to one in person and wasting a day of my life, I will only now do it online. Another agent that is in my office actually had a successful bid with her client and she felt that the price was fair but not anything special, especially when the buyer's premium was factored in.
Flag Wed Dec 4, 2013
Trevolyn Hai…, Agent, Highland, CA
Wed Dec 4, 2013
It is really easy to bid on these: just contact a CA agent & they can do most of the work for you and help you with financing if needed.

The hard part is to have any chance at getting the property you will have to be prepared to bid at or at least close to market value (which quickly looking is over $400k).

The reason for this is the properties listed on Auction.com are very seldom 'Absolute Auctions', meaning they will take any highest bid; the winning bid is subject to seller approval and the seller usually has a 'Reserve' price set which means that there is a minimum price they will sell at that is not advertised or known to the public. So even if you place the 'winning bid' you may not actually get the property. (Check this & other forums for other buyers experiences so you get a better idea of what you can experience).

The market down here is very active so there will be competition on the home which will help drive up the price.
0 votes
I concur with Trevolyn. Also, if you really like the property, do not be afraid to pay what it may really be worth. Bidding too low means you will probably get out-bid. In addition, it will be to your benefit if your financing is very strong as you will most likely be competing with buyers that can pay with cash.
Flag Wed Dec 4, 2013
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