You know, I've never attended as many auctions in my whole life as what I've attended this year alone. I've attended a few RARE Auctions, a court house auction, an online real estate auction (not eBay) and a few others. I don't know about the past but this year you can really get some good deals at a absolute real estate auction.
I went to another auction this past Saturday. Up for absolute auction was a 2,900 square foot home. The home was valued at around $300,000. It was a 2 story home, 4 bedroom with 3.5 baths. Most of the home was outdated but it was maintained well. The outside of the brick home was in very good condition. I believe they said it was built in the 70's by a reputable construction business - of which the son of the construction business had lived next door for a while.
The owner of the home had past away 3 years ago. The widow had built a new home and moved into that home with her daughter. The auctioneer asked for a moment of silence before the auction began in respect of the family. I don't know if they were present but I didn't hear him mention the family being there. All of the owner's belongings were about to be auctioned off as well.
Although the home was really nice and large with a good neighborhood the home didn't yield much. As with the previous auctions the auctioneer appeared dissappionted or maybe even embarassed that the home was getting so little response. I think there were 3 bidders that bid but near the end one had dropped out. A young family ended up with the house at $145,000 - not including the 10% buyers fee tacked on by the auctioneer.
Like I said, I don't know about previous years but the auctions I've seen in my area recently have been good for the buyers but not so good for sellers unless they only want to get rid of the property quick.
Bummer for the owner's. I'm surprised at the low price given the value. Didn't somebody put a reserve on it!
Hi Bill - Hope this is not a sign of the times, I think we've (in Florida) been hit really badly in the resale department. Just a day or 2 ago I saw an ad for an absolute action, no reserve. First time I've seen this in all my years in Florida. I just keep saying This Too Shall Pass, all the while hoping I know what the heck I'm mantra-ing!!! Nice to meet you, my fine print buddy ;-)
Do you have any rules for acutions in your state? Arizona seems to be pretty loose, with very little control of validity of bids auctioneer is calling out (ie, phantom bids, or not telling you there is a minimum bid, etc.)