Just sending out some feelers as to how many REO listings turn into "auction". I've had 2 in the last 6 weeks, one sold at auction 25% under asking, the other went back on market and sold $2k over asking. Is this becoming more frequent in an effort to clear the pipe line? Any input?Kristine LaDueOgden the real estate company262-707-7510 mobile262-922-4105 faxkrisladue@aol.comwww.krisladue.com
I think it has to do with the amount of REO inventory in a geographic area. In the past I have seen the auction values go both ways, sometimes way over what it was listed for, other times under. Some auction atendees get caught up in the whole bidding thing and if they don't get the property they were after, they start to bid on properties they have never seen. I have had people call me after they made these blind purchases, asking if I can re-sell it for them. One was a commercial industrial building in a very urban area, the other a vacant residential lot with a wetlands area that needed to be crossed (think bridge). When I asked "Why did you buy this" Mr. Coml/Ind "Pound for pound, looked like a good deal", Mr. lot "I knew it was in a good town". The lesson- buyers of auction properties should do their due dilligence.
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