Has anyone ever attended an absolute real estate auction? I went to one this afternoon. It was quite an experience.
An agent that sits next to me in the office said that she would be going to this real estate auction in the afternoon and invited me to join her. So we hopped in her SUV and away we went. The auction was being held in Venice, FL by VanDeRee Auctions . It was a 3 bedroom plus a den or 4th bedroom/ 2 bath/ 2 car garage, tile throughout, granite countertops, wood cabinets, 55+ community, 2278 sq. ft. under air, built in 2004 and was in a planned community.
We pulled up to the house and the whole street was lined with cars on both sides. It looked like a pretty good turn out. So Connie (the agent from my office) and I went and started looking around. The house looked as though no one had ever lived there. It was in great condition. As we wondered from room to room she asked me what I would list it for if it were my listing. I told her $399,900. The funny thing was that the previous listing agent showed up at the auction and we started talking to him, and that is exactly what he had had it listed for.
Inside there was probably 50+ people. We saw several agents, a local news station, a couple newspapers and a lot of bystanders. Once 12:30 rolled around Mr. Van De Ree, the auctioneer, got on the mic and introduced himself and went through all of the terms of the auction and the amenities of the house. He said that there would be a 10% buyer's premium, $15,000 deposit on auction day and a second deposit due in 7 days for a total of 10% down. The buyer would be paying all closings costs and closing would occur in 30 days.
When coming in the door people were registering for the opening bid. So when Neil Van De Ree started the auction out he said I have one bid of $100,000 and a three way tie for $200,000. So he started the bidding at $200,000. Out of the 50+ people in attendance only two people in the audience and one person calling in by phone were bidding. The bidding quickly got up to $235,000 and then no one wanted to budge. Mr. Van De Ree went over what a great deal the property was and went over the amenities again and then spoke with each of the bidders. Finally, one of the bidders went up to $240,000. Mr. Van De Ree lifted his gavel and said, "Going once for $240,00, going twice, and one of the bidders chimed in at $250,000. Again Mr. Van De Ree lifted his gavel and chanted the $250,000 price. The phone bidder increased their bid to $255,00. Going once for $255,00 Mr. Van De Ree said, going twice, sold for $255,000 to bidder number 16, our phone bidder.
What a deal! This house that was listed a few weeks ago for $399,900 just sold for $250,000 plus a 10% buyers premium and closing costs. My best estimate is when all said and done they would have bought it for around $300,000.
I was going to look into the auction process for my listings and now I think may start bringing my buyers to the auctions instead. This person sure got a heck of a deal!
So if you've never been to a real estate auction go check one out!
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In North Port, Florida the market so flooded with new homes that builders are cutting their own throats just to jump ship. All we can hope for right now is that the homes they are dumping at little or no profit will soon be sold so that the prices will normalize.
It is going to make it difficult to get the appraisals for the homes bought last year with the new prices being considerably lower than 2005. The same home we sold last year for $258,000 is lucky to fetch $220,000. Investors a walking away from their commitments and leaving the builders with a lot of inventory.
Last year, we were hard pressed to find any homes under $200,000. This year you can have your pick. Competition is fierce, and buyers are asking for more owner financing. Every house that is shown, the agent has the same feedback. "Well, you know there are a lot of choices out there, they are just going to keep looking for the most house for the least money."
Upgrades don't impress the buyers as much as price. If they can get 200 or 300 more square feet for the same money, they don't care about paying for granite countertops. At least, that is our experience right now. With gas prices so high now, proximity to work had taken on major role. "How close is it to the interstate?" is often asked.
Right now, the bells and whistles aren't selling here. They'd rather have an extra room.
