Comments on: First Time Homebuyers Going to Extremes Part Two: Getting Lucky at an REDC Auction http://www.1to4plex.com/2009/09/first-time-homebuyers-going-to-extremes-part-two-getting-lucky-at-an-redc-auction/ Thu, 07 Jan 2010 05:49:29 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: admin http://www.1to4plex.com/2009/09/first-time-homebuyers-going-to-extremes-part-two-getting-lucky-at-an-redc-auction/comment-page-1/#comment-202 admin Thu, 07 Jan 2010 05:49:29 +0000 http://1to4plex.com/?p=679#comment-202 Merci for your comment, Fabien! I agree. Ebay is another example of how ordinary garage sale-type items can often be auctioned for more than their actual value. You can get lucky at a real estate auction, but getting a deal is anything but guaranteed. Now, if you are a cash buyer, there is a lot less competition going directly to a trust deed sale -- I know people who have gotten great deals there, but cash is required. For the ordinary buyer, one way to play the present market is to focus on short sales. Many people won't bother with them -- which means there is less competition. Merci for your comment, Fabien!
I agree. Ebay is another example of how ordinary garage sale-type items can often be auctioned for more than their actual value. You can get lucky at a real estate auction, but getting a deal is anything but guaranteed. Now, if you are a cash buyer, there is a lot less competition going directly to a trust deed sale — I know people who have gotten great deals there, but cash is required.
For the ordinary buyer, one way to play the present market is to focus on short sales. Many people won’t bother with them — which means there is less competition.

]]> By: Fabien http://www.1to4plex.com/2009/09/first-time-homebuyers-going-to-extremes-part-two-getting-lucky-at-an-redc-auction/comment-page-1/#comment-200 Fabien Tue, 05 Jan 2010 17:57:31 +0000 http://1to4plex.com/?p=679#comment-200 Thanks for posting this story Flo, very insightful about the REO auction process. I've been to several jewelry and car auctions in the past, but have yet to attend a real estate auction. In my experience, the exact same dynamic seems to happen all the time. If the auction gets somewhat feverish (and it's been the case every time...), desirable items end up being sold at retail price, or even above that. It is somewhat disappointing to see that auctions do not provide the great deals people claim they do. I'd say that for all the stress you experience with them, the only advantage is the quickness of the process. I remember an auto auction I attended in Compton, CA 2 years ago. Among other vehicles, a 1992 Lexus LS was shown and even though it was in good shape for its age, the auctioneer did such a great job at hyping it up that the winning bidder got it for almost $1000 above what dealers in the vicinity sold the same car for. It was baffling. It seems your best bet is to attend auctions where very few people show up, or when the auctioneer is too tired to hype stuff up. Fat chance in today's LA real estate market. Thanks for posting this story Flo, very insightful about the REO auction process. I’ve been to several jewelry and car auctions in the past, but have yet to attend a real estate auction.

In my experience, the exact same dynamic seems to happen all the time. If the auction gets somewhat feverish (and it’s been the case every time…), desirable items end up being sold at retail price, or even above that. It is somewhat disappointing to see that auctions do not provide the great deals people claim they do. I’d say that for all the stress you experience with them, the only advantage is the quickness of the process.

I remember an auto auction I attended in Compton, CA 2 years ago. Among other vehicles, a 1992 Lexus LS was shown and even though it was in good shape for its age, the auctioneer did such a great job at hyping it up that the winning bidder got it for almost $1000 above what dealers in the vicinity sold the same car for. It was baffling.

It seems your best bet is to attend auctions where very few people show up, or when the auctioneer is too tired to hype stuff up. Fat chance in today’s LA real estate market.

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