Bill Blog

Master Commissioner's Sale

Bill Dunn (Prudential Premiere Realty) — Mon, 25 Aug 2008 22:11:42 -0500

Today I went to the McCracken County Master Commissioner's Sale. It was held at 1:30pm inside the courthouse at the steps going upstairs. This was my first time attending one of these so when I had always heard someone saying "courthouse steps" I always thought they meant outside. Turns out it's inside.

Up for auction today were 11 properties. Four properties were removed from the list as a sale or something had enabled their removal from the list. Properties ranged from around $23,000 to $229,000. There were probably 30 to 40 people there. I noticed a couple of other agents there. I assume with clients. There were at least a couple of attorneys there representing lenders.

I had many reasons for attending. I wanted to learn if it was really possible to get a great deal at one of these auctions. I wanted to experience one for myself as hearing it from someone else doesn't include all the details. Details are good. :-)

I don't totally understand all the possible circumstances a property would be auctioned off. I assume foreclosure but I wonder if bankruptcy could be related to some homes getting on this list.

Of all the properties auctioned off today, all properties except one were purchased by the lender that took action. These are the ones I assume were foreclosures. The one property not involving a lender was between two private individuals. The newspaper said it had something to do with a suit involving the division of property and to recover the costs of the sale. The commissioner stated the appraised value was $40,000. A bidder started the auction at $5,000. This property ended up selling for $19,600. Several bidders got involved. This property did not include a right of redemption.

One question I have is regarding the properties the lenders purchased. I assume these properties were foreclosures and that the proceeds of these properties go to the lender minus any legal fees. The lenders then sell the properties to recover their costs? These properties will likely be available or being sold by another agent in the near future?

Today's Master Commissioner Sale

Bill Dunn (Prudential Premiere Realty) — Mon, 26 Jan 2009 19:30:10 -0600

The master commissioner's sale was held today at the McCracken County Courthouse. There were probably 50 people in attendance. Of the many properties I listed in a previous blog here are a few highlighted properties that were sold.

1415 Madison St, lot, appraised at $2,500. Sold for $1,700
1424 Little Avenue, lot, appraised at $5,000. Sold for $3,450
934-936 North 10th Street, appraised for $110,000. Sold for $73,500
2069 Irvin Cobb Drive, former bar or nightclub, appraised at $240,000. Sold for $200,000. This property was previously listed by a couple of in-town agents at a price between $650,000 to $775,000
1724 Monroe, house, appraised for $60,000. Sold for $40,001
1204 Park Avenue, house, appraised for $45,000. Sold for $34,000
250 Jennifer Lane, house, appraised for $240,000. Sold for $205,000
101 Sarah Cove, house, appraised for $68,000. Sold for $45,339
2865 Oaks Road, house, Appraised for $96,000. Sold for $109,100.

Many of today's foreclosures had private buyers bidding against the lenders that foreclosed on the properties. In one auction the bank actually lost the auction. I suspect the attorney that represented the lender was allowed to bid up to a certain amount. The winning bid was 1 cent higher than the banks max bid.

The appraised values were the values stated by the auctioneer.

One of the things I get a kick out of when I attend these auctions is how many of the attendees know each other. I myself knew several people there today. Like myself, several people were there taking notes and not participating.

$7,500 tax credit repayment requirement removed?

Bill Dunn (Prudential Premiere Realty) — Sun, 25 Jan 2009 19:57:44 -0600

I was just in the car listening to a talk show. The host had Sandy Dunn from the National Association of Home Builders. I thought I heard her say that the repayment requirement of the $7,500 tax credit has been removed. It is now a true tax credit instead of a long term loan.

Anyone else heard this? Is this true? I can't find anything online about this change.

Attended GRI-5 Today

Bill Dunn (Prudential Premiere Realty) — Fri, 23 Jan 2009 18:20:53 -0600

Today, myself and 64 other local realtors, attended GRI 5 class in Benton, KY. The class was entitled Systems for Success. For anyone not familar with GRI (Graduate Realtor Institute), it is a series of classes realtors attend for a variety of reasons. Among the many reasons to attend the classes, we learn to better work with buyers, sellers and other agents. We also learn how to conduct business more efficiently.

I particularly like attending these classes because I get to meet new peers and talk with friends. One of the ways we meet new peers is by working in groups on brief group collaborations. We also exchange business cards so we can provide client referrals to some of the agents we meet (networking).

Of all the good conversation I had there was one thing in particular that was said that most, if not all, agents had noticed. Most agents have noticed a significant increase in business since January 1st. Some agents said their buyers were waiting until after the annauguration took place. I personally noticed an increase in business shortly before that event.

Court House Auctions January 26 at 1:30pm

Bill Dunn (Prudential Premiere Realty) — Sun, 18 Jan 2009 22:40:30 -0600

Many visitors to my web site enjoy checking the foreclosures page on a routine basis. The master commissioner has auctions on the last Monday of each month inside the court house at the bottom of the stairway. A notice is placed in the Paducah Sun on the second Friday of each month listing the properties to be auctioned. The same list is also on display in the hallway near where the auction is held.

Generally, any bank lender foreclosures that are held are purchased back by the lender. These autions are usually not purchased by auction visitors. There are properties to be auctioned from time to time that are unrelated to failed mortgages.

This January 26, 2009 there are several properties being auctioned. Most are lender foreclosures but there are several this month that are being auctioned to pay delinquent taxes, nuisance code liens or are the result of a dispute between parties. Habitat for Humanity has foreclosures this month as well. This month I have listed auctions that would likely be available to a private buyer or investor.

1415 Madison Street - Judgement to collect $10,531.78 due to nuisance code liens and delinquent taxes, interest, attorney fees and auction costs.
1424 Little Avenue - Judgement to collect $10,941.37 due to nuisance code liens and delinquent taxes, interest, attorney fees and auction costs.
934-936 North 10th Street & 2069 Irvin Cobb - Recover costs of $11,231.57 for delinquent taxes on both properties. Recover costs of $3,568.72 for citation liens on the North 10th Street property. 934 -936 North 10th Street is 2 tracts measuring 134' 6" x 48' x 134' 6" x 48'. Tract 2 is 134' 6" x 24' x 134' 6" x 24'. 2069 Irvin Cobb is 1.024 acres according to subdivision plat.
1724 Monroe Street - Recover costs of $64,276.42 to recover judgement plus attorney fees and costs of sale.
1204 Park Avenue - Recover costs of $41,161.30 plus contingent deferred interest and costs of the sale. This is a Habitat for Humanity foreclosure. Lot size is 50' x 165'
1316 Madison Street - Judgement to collect $13,439.98 due to nuisance code liens and delinquent taxes, interest, attorney fees and auction costs.
927 Finley Street - Recover costs of $18,634.45 plus contingent deferred interest and costs of the sale. This is a Habitat for Humanity foreclosure.

As noted in the information posted in the Paducah Sun notice, these homes are generally not available for inspection even if you intend to bid on a property.

I intend to attend this auction. If you have any interest in any of these auctions let me know what you have in mind. Maybe I can provide assistance.

Vacated Church I Sold Turned Into Something Good For Society!

Bill Dunn (Prudential Premiere Realty) — Thu, 08 Jan 2009 21:01:08 -0600

In early 2008 a friend of mine that works at the vets office referred my name to a friend of hers that was looking to purchase a church. He called me from his home in Florida. I gathered pictures and information on a couple of churches he wanted info on and emailed them to him.

All the churches were priced really cheap. One of them was in good shape and was being sold by the former church members who had attended. Their families had attended this church for many years and were sad to have to sell it. They were being very particular to who they sold the church for. When my client and I were gathering info on the church and he was considering making an offer, without even seeing the church, we had another buyer who was making an offer as well. I learned that other buyer's offer was turned down because he wanted to sell the items in the church piece by piece. The persons responsible for selling the church turned that offer down pretty quickly.

The church had the pews and the pulpit still inside. If I remember correctly the sound system was still in place as well. The basement leaked a little. Some of the shingles were blown off the roof. The church members had buried steel rods on the church property to mark the property boundary from the cemetery next door. The parking lot had grown grass over a majority of the gravel.

During the closing my client, Ron Henry, asked us to pray with him and he showed us a video he had produced himself. This video took nearly an hour for all of us to watch. The person's present besides myself and Ron were the broker doing the closing and the representatives from the church. Ron made it clear to the former church members he had no intention of destroying the church. As a matter of fact I believe the agreement even stated that if Ron ever decided to get rid of the church that the former church member's would have the opportunity to buy it back at the same price.

I hadn't heard from Ron since the closing. My job was done. The church building was near the town of Clinton, KY, nearly an hour away from my home and work. That friend that referred Ron to me brought me a newspaper article that was written a few months ago. I was so impressed I wanted to share it with everyone else.

Read the article to see what Ron did with this church building! Here's to you Ron!

I don't want to list your house...

Bill Dunn (Prudential Premiere Realty) — Mon, 12 Jan 2009 12:37:11 -0600

...unless you are serious about selling it.

Yes, if you aren't serious about selling your home I'll pass on listing it. When I try to sell a home for a client I invest a lot of time and money. If you unable or unwilling to maintain the home in a good, clean condition or not willing to negotiate a fair price then we are likely wasting your time and mine.

When I list a home I gather important information about the home for placement in the MLS. This single entry gets your home listed on many, many web sites. An example of a few commonly used web sites are Realtor.com, Zillow.com, Trulia.com and my own and most other realtor web sites.

In addition to the MLS, I typically place your home with a brief description in the Paducah & McCracken County edition of the Catalog of Homes. This catalog displays many homes for sale in McCracken county. The catalog is used by buyers, sellers and others just to pass the time. Placing your home in the Catalog each month is not free and does not guarantee any responses.

Furthermore, I place a Prudential Real Estate yard sign in your front yard so that passersby will know your home is for sale. The sign has the well known Prudential name and "The Rock" logo on it as well my name and phone number across the bottom. The yard sign indicates that your home is being sold by a professional and allows interested parties to call me for more information. If someone wants to see your home I will coordinate an appointment for them to see the home.

I also place your home on a few additional web sites I frequent. Some are free and some are not. I may place ads in local newspapers from time to time along with Open House notices if you permit me to host. The typical open house in the Paducah area is performed from 2-4pm on Sunday afternoon.

This process may go on for months.

So, if you are serious about selling your home, in the current market, I'll be happy to list your home, advertise it and show it. Otherwise, you might consider waiting until market conditions improve.

Buy a home, receive a $7,500 interest free loan from the Fed

Bill Dunn (Prudential Premiere Realty) — Fri, 02 Jan 2009 19:55:01 -0600

The economy may be in trouble but there are always opportunities regardless of market conditions.

Interest rates are another advantage to home buyers. Rates are about as low as they get. With today's interest rates you can save a ton of money over the length of a 15 or 30 year loan. A few years ago when I refinanced my home loan the length of my loan dropped from 30 years to 15 years. My payment stayed the same.

Another, lesser known advantage to buying a home now is a tax free loan available via the Housing and Economic Recovery Act of 2008. This loan is available to qualified home buyers when the 2008 or 2009 tax return is filed. To be qualified, a home buyer must not have owned a home in the past 3 years. The amount of credit is equal to 10% of the purchase price but no more than $7,500. If you purchase the home after Jan 1 2009 but before the deadline of July 1, 2009, you can still receive the credit by filing an amended 2008 tax return.

Remember, I said this is a LOAN? You receive the money via your taxes but it's equivalent to a interest free loan. After two years the money must be repaid via your tax return. If you claim the full $7,500, your tax return will pay back $500 each year over a 15 year period until the full amount has been returned.

Another key point... if you sell your home before the amount has been repaid at a profit you must pay off the loan with any profits. On the other hand, if you sell the home at a loss the loan is forgiven.

Another important detail I've read regarding pay back of the loan at tax time is you may need to adjust your federal tax wage withholding to ensure you cover the credit pay back.

More details are available on Realtor.org and at KAR.com

Thinner Catalog of Homes

Bill Dunn (Prudential Premiere Realty) — Sun, 07 Dec 2008 13:25:51 -0600

Friday the December issue of our local Catalog of Homes was released. The Catalog contains many homes that are for sale by local agents. It does not contain a complete list of properties for sale but it contains many.

This month's issue was noticeable thinner. I compared last month's issue and found that it does indeed contain fewer pages. The last issue had 115 pages. This issue has 102 pages.

I don't have a page in the Catalog this month myself. The homes I had listed have either sold or expired so I didn't place an order. The expired listings have sellers waiting for the market to rebound before they attempt to sell again.

While talking to my broker about listing incentives, we talked about how the current problem isn't getting people to list their homes, it's getting buyers for those homes. Although interest rates are going lower and lower, people are being very cautious during these tough economic times. The market hasn't come to a complete standstill. Not everyone halts their life during a recession. If mortgage rates go down to 4.5% we expect buyers to come out again.

Personally, I obtained my own home loan with a local mortgage officer using a VA loan. When I purchased the home in 2001 I got a rate of 7.5% and a 30 year term. I refinanced with another VA loan and the same mortgage officer back in 2003. My rate went down to 5% and a 15 year term. My payment went up a handful of dollars but it was WELL worth the savings.

My broker and I also spoke about how the local board of Realtors had nearly 20% of their agents not sell a single property in 2008 and they expected several agents to escrow their license in 2009.

Online Real Estate Auctions

Bill Dunn (Prudential Premiere Realty) — Tue, 18 Nov 2008 14:11:25 -0600

I haven't seen this before in my area. It has come to the attention of several other people in my area as well.

There are these little yellow signs, similar to the one here, in my neighborhood. They are advertising an online auction for a home that was foreclosed on. This particular home is a 3BR, 1BA, 1,100 sqft home that was sold a couple of years ago for $54,000. The home appears to be in good condition.

The company holding the auction advertises it as an online only auction. Their name is Williams and Williams Real Estate Auctions (www.WilliamsAuction.com). You must go to their web site and register to receive more information, view the starting price, place any bids or find details as to how you can tour the home. Private buyers can register as well as realtors. Brokers must register if a sales associate wants to place bids for a client or themselves.

I was watching the auction of the home in my neighborhood. Anyone who's used eBay before knows you don't want to bid until the last few minutes. Any bids placed before that time just raises the price unecessarily. The auction started at $1,000 on November 14 at 12pm. Now, 2pm, November 18 the price is up to $11,500. One particular bidder has a maximum bid that has been overcoming other bids.

The week before the auction I tried 3 times to get access to the home by calling the 800 number. Each time I was told the auction company would call me back. For some reason they did not have a lockbox on the front door. The company reps I spoke with on the phone did not know why that was. I'm told interested parties have been entering the home through a window to tour the home.

When I was unable to get access to the home I stopped and looked in the windows. To my surprise was another agent's card taped to a front window. I called that agent and was surprised to hear what he said. Apparently, he had done the cleanup work on the home to prepare it for sale (it was a typical foreclosure). The bank that owns the home then let this auction company take over the sale leaving this agent out in the cold. He told me he plans to place a lien on the home to recover his expenses. I'm not sure a lien will be possible as the owner would have changed but whatever.

If you are a buyer interested in bidding on a home for auction on this web site call me at 270-994-3749.

Bargains

Bill Dunn (Prudential Premiere Realty) — Tue, 02 Dec 2008 09:43:48 -0600

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.

Many more store closings, more bad times ahead!

Bill Dunn (Prudential Premiere Realty) — Sun, 23 Nov 2008 23:18:16 -0600

Some have said the slump in the economy might be at the trough of the slowdown and we should expect a recovery to start at anytime. I was hoping for the same but after I received an email from a friend that listed many major retail stores that are scheduled to close their doors I'm not so sure we've even close. I verified a few of these store closings in case the email was fraudulent. I don't know about you but when I saw this list I immediately foresaw a series of further declines on Wall Street each day these stores close their doors for good.

Here is the list of stores closing some locations or closing completely:

Ann Taylor- 117 stores nationwide are to be shuttered
Lane Bryant, Fashion Bug,and Catherine's to close 150 stores nationwide
Eddie Bauer to close stores 27 stores and more after January
Cache will close all stores
Talbots closing down all stores
J. Jill closing all stores
GAP closing 85 stores
Footlocker closing 140 stores more to close after January
Wickes Furniture closing down
Levitz closing down remaining stores
Bombay closing remaining stores
Zales closing down 82 stores and 105 after January.
Whitehall closing all stores
Piercing Pagoda closing all stores
Disney closing 98 stores and will close more after January.
Home Depot closing 15 stores 1 in NJ (New Brunswick)
Macys to close 9 stores after January
Linens and Things closing all stores
Movie Galley Closing all stores
Pacific Sunware closing stores
Pep Boys Closing 33 stores
Sprint/ Nextel closing 133 stores
JC Penney closing a number of stores after January
Ethan Allen closing down 12 stores.
Wilson Leather closing down all stores
Sharper Image closing down all stores
K B Toys closing 356 stores
Lowes to close down some stores
Dillard's to close some stores

A few these stores that are closing in Paducah occupy buildings that cost tens of thousands of dollars in rent each month. It's hard to imagine these stores could pay that much money in rent, employees, utilities, supplies, inventory, etc..

On the brighter side, compared to what we've been paying for gas I feel like the oil companies are practically give it away now. On top of the lower prices I used a discount from a local SuperValue today. They provide a discount on their gas when you receive certain products in the store. With the two discount receipts I had I saved 48 cents on gas with a 15 gallon limit. I filled up my Lincoln Navigator for just $1.02 per gallon!

Recent Auctions

Bill Dunn (Prudential Premiere Realty) — Sun, 16 Nov 2008 22:01:26 -0600

Saturday (yesterday) I attended a couple of auctions. The first one was for a couple of tracts near Mike Smith's new location next to I-24 here in Paducah. The tracts totaled a little over 7 acres in two tracts. Included was a modular home that is being rented for $650 / month (I think). The land in that area is development property. This area is currently home to several hotels, Mike Smith Toyota, Heartland Homes and several other businesses. I understand that Mike Smith paid about $115,000 per acre of his new car lot. These two tracts sold for a mere $50,000 per acre at the auction I attended. The auctioneer didn't appear real happy about the selling price.

The second auction I attended was for a home at 1531 Jefferson St in Paducah. This victorian home was a 4BR, 2 BA home with nearly 2,400 sq ft of living space. The asking price of this home was $96,000 when it was listed with a local brokerage. The home appeared in good condition although one of the upstairs rooms I toured had a severely crooked floor. This home sold for $70,000

The auctioneer didn't appear to be very pleased with either of these auctions. I wonder what his sellers opinions are now that the auction is over. Auctions may lead to an immediate sale of property but the sale amount may be less than what's expected, a trade of sorts.

The auctioneer charged a 10% buyer premium.

Goodbye Delta Queen

Bill Dunn (Prudential Premiere Realty) — Tue, 28 Oct 2008 16:00:18 -0500

The Delta Queen riverboat left Paducah for the last time on Monday, October 27. The riverboat will no longer be allowed to sail the rivers of the midwest due to a refusal by Congress to issue an exemption as has been done since 1966.

In 1966 Congress passed a Safety of Life at Sea Law that forbids the Delta Queen from operating because it is primarily constructed of wood. The current exemption expires on November 1, 2008.

I understand, from people who were at the riverfront watching it leave, that Paducah didn't want to let go. Apparently there was enough of a breeze blowing that it wasn't able to easily leave our riverport.

Master Commissioners Sale

Bill Dunn (Prudential Premiere Realty) — Sat, 08 Nov 2008 09:54:19 -0600

On November 24 at 1:30pm the McCracken County Master Commission will hold another monthly auction. The following properties are to be included in this month's round. The auction is held inside the courthouse at the foot of the steps.

3141 Broadway (Paducah's old Coke plant), to recover costs of $1,260,802.77
201 & 217 Glenn St, to recover costs of $1,002,084.21
7260 McNeil-Alsip Road, to recover costs of $167,336.52
2902 Clark St, to recover costs of $71,427.83
8825 Old Mayfield Road in Boaz, to recover costs $66,720.17
2701 Madison St, to recover costs of $46,747.10
290 Alben Barkley Dr, to recover costs of $106,069.54
1912 Adams St, to recover costs of $46,332.13
832 South 5th St, to recover costs of $54,368.15
1822 Broad St, to recover costs of $92,523.28
3418 Buckner Lane, to recover costs of $124,954.07
412 Oaks Road, to recover costs of $23,954.43
4250 Contest Road, to recover costs of $9,545.00 and $55,057.48
2930 Alabama St, to recover costs of $67,149.62

Many of these auctions may be cancelled due to agreements being reached by the owners and mortgage holders. Payoff of the sale amount is typically expected within 30 days.

Generally, a preview of the property is not permitted as the master commissioner does not have access to the properties. If anyone would like information on any of these properties I might be able to provide a small amount of info. Email or call me with the address of the property.