Comments on: Are Home Auctions a Good Deal for Buyers.

By: Larry Franzella

Larry Franzella — Thu, 08 Jan 2009 03:09:23 +0000

Great post David.

By: Lee Ginsburg

Lee Ginsburg — Tue, 23 Dec 2008 03:32:59 +0000

I have also been to the auctions and was totally impressed with the activity, home sales but not the values. I was very familir with 4 of the properties sold. 4 out of 200 is not much but there were not many more in San Mateo or San Francisco counties. Two of the sales I thought sold for above market price plus they had to pay an additional 5% buyers fee to the auction company. One I thought sold at about market and one sold for less but once you tack on the 5% fee I did not see any deals worth the risk. Possibly homes in the Valley and East Bay might have sold below market. I would not know.

As David said a buyer needs to do his homework before hand. Buyers may have their Realtor assist them at the auction and with their homework. It costs the buyer nothing extra but gives them an experienced person with lots of knowledge to represent them with these Auction Sharks. An experienced Realtor can save the auction buyer lots of money and headaches.
Lee Ginsburg
http://www.leesellsmore.com

By: Adam Chinn

Adam Chinn — Sat, 20 Dec 2008 02:32:54 +0000

Great Post David,
I have actually gone to a few auctions and it was quite an interesting experience. Most of the homes have been on the market before as you mentioned and failed to sell. Many people that I have spoke to believe that auctions are the best thing when buying real estate but may fail to see the bigger picture of having the time to do their inspections to make sure they know exactly what they are buying. I believe that auctions are good for certain people and are not for everyone. There are what I would consider good deals at them but it depends on your needs.

Thanks again for your post, I have often wondered what others have thought.