Property Auctions

[SHELLY]

Saw an ad in today's WSJ about an upcoming Florida Gulfcoast Real Estate Auction (SoWal & Bay County Properties) to be held at Cafe 30-A on March 4th. May be able to pick up a bargain?

[CastlesOfSand]

I'm in!

[Miss Kitty]

Great idea...free drinks and auction paddles!!!

Hey CoS...I'll be joining you in the SoWal jail!

[monty]

Saw an ad in today's WSJ about an upcoming Florida Gulfcoast Real Estate Auction (SoWal & Bay County Properties) to be held at Cafe 30-A on March 4th. May be able to pick up a bargain?

I saw the ad in the WSJ and went to the higginbotham website. There are quite a few properties listed along 30A. This is a sign of the absolute softness in the local RE market.

If you hear about the results, please post.

[Amp22]

I saw the ad in the WSJ and went to the higginbotham website. There are quite a few properties listed along 30A. This is a sign of the absolute softness in the local RE market.

If you hear about the results, please post.

Actually, auctions are quite common these days. We've had them here for years. Now if you see a list of foreclosures in the area - let us know ( absolutely:roll: ).

[Jellyfish]

Just curious- why would an owner auction instead of simply listing for an attractive price? Unless you are talking about a real sellers market where multiple buyers are bidding the prices up, in a normal market aren't you always going to get a lower price in an auction?

[SHELLY]

Just curious- why would an owner auction instead of simply listing for an attractive price?

They've probably tried getting "their" price but "their" (too high) price wasn't the "market" price. So they believe going to auction is better then blowing up balloons and sitting at their house every Sunday afternoon waiting for buyers to come by and snap up the property at "their" price. (The owners who refuse to lower their price have the same mindset as the Worldcom shareholders who rode their stock into the ground. But with Worldcom one could only go to Zero, whereas with real estate, one can lose "minus-Zero" and end up having to bring money to the table to get out from under a mortgage. :eek: Real Estate investing isn't riskless--regardless of what developers say.)

Usually when the properties go to auction (and the WSJ is listing more and more of these auctions across the nation every week) owners believe they can get an audience frothed up in a bidding war and hope to get "their" price or (hopefully) better. The sooner they get these properties out there while there are still a few folks who believe we're still in a "hot" real estate market, they have a better chance of getting "their" price.

My guess is that a lot of these properties now going to auction are "investulators" trying to dump the properties into a softening market. IMO there will be more and more such auctions coming in the next few months to a year--the condo auctions will be especially interesting.

[SHELLY]

Actually, auctions are quite common these days. We've had them here for years. Now if you see a list of foreclosures in the area - let us know ( absolutely:roll: ).

From: RealtyTrac Inc (http://http://sev.prnewswire.com/banking-financial-services/20060123/LAM02423012006-1.html)

"Despite a 29 percent decrease in new foreclosures from the first
quarter to the fourth quarter, Florida documented the nation's highest
foreclosure rate and accounted for more than 14 percent of the nation's
new foreclosures in 2005. The state reported 121,843 properties
entering some stage of foreclosure -- 1.67 percent of the state's
households."

I think we're going to start seeing foreclosures increase in the state, especially in the condo area, as we go into the year and as pre-construction sale condos come on line. Upscale areas will not see many foreclosures unless their owners are too deep into real estate investing. Even then, there are vulture capitalists waiting in the wings to "relieve" these folks of their burden so they won't have to suffer the indignities of going into foreclosure--provided the vulture covets their property and the price is low enough to make it worthwhile.

[Jellyfish]

My guess is that a lot of these properties now going to auction are "investulators" trying to dump the properties into a softening market. IMO there will be more and more such auctions coming in the next few months to a year--the condo auctions will be especially interesting

Not to be a vulture, but I hope so. We have been waiting to buy in SoWal for several years, not as investors but to vacation and then live there eventually. I was not about to jump into the frenzy over the past few summers....

[SHELLY]

Not to be a vulture, but I hope so. We have been waiting to buy in SoWal for several years, not as investors but to vacation and then live there eventually. I was not about to jump into the frenzy over the past few summers....

Your patience will pay off as the pendulum swings your way. And if you're a cash buyer...you're golden!

[HighBidder]

Thanks for looking at our auction. I am sorry to say that there will not be free drinks before or during the auction. Cash bar will be open after the close of the auction. There are 21 properties for sale at this auction and we have recevied many calls from buyers out of state. This will be a large event for the sellers and buyers as well. Our next auction will be held in April. If you would like to talk to us regarding selling your property at auction please email us.

Thank you again for looking and we hope to see you there.

[SHELLY]

I am sorry to say that there will not be free drinks before or during the auction. Cash bar will be open after the close of the auction.

:(

It might be in the sellers' best interests to all chip in and have an open bar pre-auction...couldn't hurt to have the crowd liquored-up for the festivities. (Then again, there's that pesky little law about the possibility of voiding contracts if a person is intoxicated.)

Sounds as if these auctions are going to be monthly event.

[Morgan]

Is there a website for this auction??

[imasunbum]

Is there a website for this auction??
Morgan - A name that is dear to my heart - my daughter's name!

www.higgenbotham.com

[imasunbum]

I wonder if you have to be registered to attend the auction. Does anyone know :idontno:

[Cork On the Ocean]

The properties will sell for less than if the properties were listed with a realtor because the buyer is paying a 10% buyers fee over the sales price to the auctioneer (twice the standard commission.) Didn't find info if the seller also pays commission but assuming they don't so they can sell for at least 5% because the buyer is paying the commission and then some.

I will be surprised if the sellers take significantly less than they were prepared to take minus the 5% commission. If they get 5% less, the seller pays 10% more. The seller gets the same and the buyer just paid 5% more. :eek:

From their website:

"Within all of us is a tremendous need to win. All interested parties are "forced" to make a decision. Excitement and motivation are used to the fullest with a public auction. Professionally trained ringmen apply continuous motivational pressure to the buyers to gain every dollar possible. This sense of excitement works to create the psychology of impending sale." :nono1:

Might as well throw in the liquor. Is there any difference? :rolling:

The standard FAR contract has a clause which allows the buyer to get out of the contract if the appraisal doesn't come in as high as the contract price.

How bout the right to inspect? In a standard contract, the buyer has the right to have an inspection by a professional and the seller generally pays up to 1.5% in waranteed repairs and 1.5% for wood destroying organism damage.

Of course no financing contingency if it's a cash deal.

How bout seller's DOC stamps and title insurance? On $500k, sellers doc stamps are about $3500, buyer's doc stamps are about $1700 and seller's title policy is about $2550. Who pays that?

It will probably sell for quite a bit less if buyer pay 10% buyers fee plus all closing costs.

Would also be nice to know comparables - sold prices not list prices.

Does the buyer get a chance to review the contract prior to purchase?
If anyone knows these answers, please share.

[OnMackBayou]

Here are some properties I read about recently in the Destin Log that were sold in Miramar Beach. I have no idea how the selling prices relate to appraised value or previous sales of comparables in these areas.
http://www.national-auction.com/results/results.htm
(http://www.national-auction.com/results/results.htm)

[landlord]

FWIW, I bought the house in Mountain Brook that is listed on that link. My wife and I are doing an extensive renovation on it. It was scheduled for an absolute auction; however, I negotiated a price with the seller in advance of the auction.

[SHELLY]

From their website:

"Within all of us is a tremendous need to win. All interested parties are "forced" to make a decision. Excitement and motivation are used to the fullest with a public auction. Professionally trained ringmen apply continuous motivational pressure to the buyers to gain every dollar possible. This sense of excitement works to create the psychology of impending sale." :nono1:


I see absolutely no difference between the description of the auction (above) and what we just went through in the red-hot housing market when there were multiple offers and realtors were whipping people into a frenzy telling clients, "you'd better bid high--or you'll lose out!!" Same song, a slightly different melody.

[OnMackBayou]

FWIW, I bought the house in Mountain Brook that is listed on that link. My wife and I are doing an extensive renovation on it. It was scheduled for an absolute auction; however, I negotiated a price with the seller in advance of the auction.
Just took a look at your purchase. Holy cow! Are you going to give tours?

[HighBidder]

I wonder if you have to be registered to attend the auction. Does anyone know :idontno: You do not have to be registered to attend. You will have to register if you would like to bid on properties once you are there. Due to the limited number of seating you may want to go ahead and register in order to attend. :D

[Cork On the Ocean]

You do not have to be registered to attend. You will have to register if you would like to bid on properties once you are there. Due to the limited number of seating you may want to go ahead and register in order to attend. :D

Hi High :lol: ,

Since you appear to be associated with the auctioneer, can you answer the questions regarding appraisal contingency, whether the seller pays a commission, any repair allowance or inspection allowed, who pays seller's docs stamps and title insurance? IF you could answer or lead us to info as well as the contract, it would be helpful.

Thanks

[imasunbum]

You do not have to be registered to attend. You will have to register if you would like to bid on properties once you are there. Due to the limited number of seating you may want to go ahead and register in order to attend. :D
Attempted registration through their site, no repsonse. Atempted again, no response. Emailed them direct today, no response. :bang: My pockets must not appear deep enought - well they are not - but they don't know that. May be better if I don't - I have impulsively purchased before - thank goodness it was a wise move. Thanks for the info.

[ecopal]

I have beeen hearing that some auctions are experiencing low turnouts and in some instances not one bid even reaches the reserve minium so nothing sells.

[HighBidder]

Just curious- why would an owner auction instead of simply listing for an attractive price? Unless you are talking about a real sellers market where multiple buyers are bidding the prices up, in a normal market aren't you always going to get a lower price in an auction?


Jellyfish-
Lower Price? Not necesarily. There are a number of reasons why a seller would utilize the auction method of marketing. The most significant is the ability to sell their property at a pre-determined time, and at fair market value. With qualified buyers in attendance, the property will acheive fair market value. No more. No less. In many cases, highly desirable property will sell for more than the initial asking price.

[SHELLY]

Jellyfish-
Lower Price? Not necesarily. There are a number of reasons why a seller would utilize the auction method of marketing. The most significant is the ability to sell their property at a pre-determined time, and at fair market value. With qualified buyers in attendance, the property will acheive fair market value. No more. No less. In many cases, highly desirable property will sell for more than the initial asking price.

HighBidder,

Will you please address the questions asked by Cork on the Ocean?


--------------------
Since you appear to be associated with the auctioneer, can you answer the questions regarding appraisal contingency, whether the seller pays a commission, any repair allowance or inspection allowed, who pays seller's docs stamps and title insurance? IF you could answer or lead us to info as well as the contract, it would be helpful.

---------------------

[HighBidder]

The properties will sell for less than if the properties were listed with a realtor because the buyer is paying a 10% buyers fee over the sales price to the auctioneer (twice the standard commission.) Didn't find info if the seller also pays commission but assuming they don't so they can sell for at least 5% because the buyer is paying the commission and then some.

Cork-
In some respects you may be right. However, by utilizing the auction method of marketing we can predict when the property will sell & close. If the seller considers current market conditions, they can then estimate the dollars that will be available to re-invest upon closing. Our sellers consistently report to us that, considering the time-value of money, the predictablility of the sale date & value acheived significantly exceeds the "perceived loss" of that extra 4-5%. How long would you want your money to sit idle?


I will be surprised if the sellers take significantly less than they were prepared to take minus the 5% commission. If they get 5% less, the seller pays 10% more. The seller gets the same and the buyer just paid 5% more. :eek:

Not necesarily. See above, and other posts.
From their website:

"Within all of us is a tremendous need to win. All interested parties are "forced" to make a decision. Excitement and motivation are used to the fullest with a public auction. Professionally trained ringmen apply continuous motivational pressure to the buyers to gain every dollar possible. This sense of excitement works to create the psychology of impending sale." :nono1:

Cork-
Like you, I represent the seller. Our fiduciary responsibility is to the seller. By the same token, we must always treat our buyers with respect, otherwise we have no buyers for future sales. Our buyers will only pay what they are willing to pay. When was the last time you told a buyer they were paying too much for your seller's property? If the seller and buyer both agree to a dollar value by virtue of the bidding process, then everyone wins.

A ringman's job is to ensure that the buyer and seller both understand the process and the interest in achieving mutual goals.

Might as well throw in the liquor. Is there any difference? :rolling:

Huh???

The standard FAR contract has a clause which allows the buyer to get out of the contract if the appraisal doesn't come in as high as the contract price.

Cork-
We provide notice well in advance of the sale, and property information packets are available upon request.

In our experience, astute buyers are not interested in "our" appraisals. They are free to order their own before the auction, or after. The same applies to mechanical inspections (See below). We will make the property available on request. Astute buyers will know the market and consequently will apply their own value to the property. The only appraisal that is worth anything is the one that someone is willing to write a check for. Please bid accordingly.


How bout the right to inspect? In a standard contract, the buyer has the right to have an inspection by a professional and the seller generally pays up to 1.5% in waranteed repairs and 1.5% for wood destroying organism damage.

I'm sure that you are aware that there are actually two FAR/BAR contracts. One is with right of inspection/cancelation, and the other is "As Is". As indicated above, prospective buyers may visit/inspect the property upon request, and do so with or without the professional of their choice. We are selling "AS IS". Please bid accordingly.


Of course no financing contingency if it's a cash deal.

Correct. Your bid packet should provided enough information for you to pre-qualify with the lender of your choice. Please bid accordingly.



How bout seller's DOC stamps and title insurance? On $500k, sellers doc stamps are about $3500, buyer's doc stamps are about $1700 and seller's title policy is about $2550. Who pays that?

A copy of the Purchase & Sale Agreement, including these terms, is included in the bidder's property information package. This information will also be covered in opening remarks on sale day. Please bid accordingly.

It will probably sell for quite a bit less if buyer pay 10% buyers fee plus all closing costs.

No different than any other deal. Please bid accordingly..

Would also be nice to know comparables - sold prices not list prices.

Buyers typically research their own comps. We prefer this as there is never a question of legitimacy.

Does the buyer get a chance to review the contract prior to purchase?
If anyone knows these answers, please share.

Yes, as noted above, it is included in the bid packet.

[HighBidder]

Once the property is listed in the auction the buyer has several weeks to look at the property and have it inspected if they wish to do so, however there is no contingency associated with this. Please bid accordingly.

The buyer pays a 10% buyers premium on the bid price to create the contract and/or sales price. Seller provides deed and orders title insurance. Buyer would purchase that insurance and pay doc stamps on the deed. Close in 30 days. I hope I have answered the question.

[HighBidder]

I am checking with our I.T. department about this issue.

[HighBidder]

I have beeen hearing that some auctions are experiencing low turnouts and in some instances not one bid even reaches the reserve minium so nothing sells.


Dear Ecopal,

This could be attributed to marketing capabilities of the respective auction company, desireability of the property, local market conditions, overall economic conditions, as well as many other things.

Above all else, the seller has to understand the what the market will bear (supply & demand), and the buyer has to know that the seller is motivated.

Regards,

[HighBidder]

To all,

Thank you for your questions & concerns. Due to my schedule over the next three days I may not be able to keep up with this forum and may answer questions from multiple members in one response. I will try to respond to all posts twice daily thru Friday morning, but if you don't hear from me please contact us at Higgenbotham Auctioneers. Our number is (800) 257-4161.

or
http://www.higgenbotham.com

BTW, You can only register to download bid packets on our website. it is not a place to register to bid.

We look forward to seeing you all at the auction.

Signed,

A "Professional Ringman" :biggrin:

[HighBidder]

BTW,

To all R/E brokers & salespeople:

We pay (from our commission) participating brokers/salespeople who are registered by their buyers in advance of the auction.

If you believe you have an interested party please call our office, ask for Karen, and let her know you need a BP form for the North Florida sale. She'll provided details and fax it to you right away.

Karen Jones
(800) 257-4161
8:30-5:30 EST

[HighBidder]

Actually, auctions are quite common these days. We've had them here for years. Now if you see a list of foreclosures in the area - let us know ( absolutely:roll: ).
Amp,

You're absolutely right! In 2005 Higgenbotham sold right at $100 Million worth of real estate at auction throughout the U.S.

None were due to foreclosure.
None were due to bancruptcy or distress.

The auction process is merely another method of marketing.

[Smiling JOe]

Cork-
Like you, I represent the seller. Our fiduciary responsibility is to the seller.
Sounds like dangerous legal grounds on your part to say this, unless of course, you are acting as a Single Agency, where the Broker is the fiduciary. You should not assume that Cork works as a Single Agency Brokerage, because most agents in this area are not Single Agents, but Transaction Agencies.


By the same token, we must always treat our buyers with respect, otherwise we have no buyers for future sales. Our buyers will only pay what they are willing to pay. When was the last time you told a buyer they were paying too much for your seller's property?...


You cannot lawfully tell a buyer that unless you are working as a Single Agent, and then you can say it and should if it is true, if you have their best interest in mind as required by the Realtor's Code of Ethics.


We are selling "AS IS". Please bid accordingly.


You mention that the buyer has the right to inspect the property after the purchase, but if the contract is "as-is," that leaves the buyer in a bind if it is not to his or her liking. Is this correct?

[TN2FLA]

Sold!!!

[HighBidder]

Sounds like dangerous legal grounds on your part to say this, unless of course, you are acting as a Single Agency, where the Broker is the fiduciary. You should not assume that Cork works as a Single Agency Brokerage, because most agents in this area are not Single Agents, but Transaction Agencies.


You cannot lawfully tell a buyer that unless you are working as a Single Agent, and then you can say it and should if it is true, if you have their best interest in mind as required by the Realtor's Code of Ethics.



You mention that the buyer has the right to inspect the property after the purchase, but if the contract is "as-is," that leaves the buyer in a bind if it is not to his or her liking. Is this correct?


Joe,

I'm smiling, too. I stand by all earlier responses. Please re-read each question by Cork in the context which it was intended, and my reply to same.

The auction process is fair, open to all, and works well. Conventional brokers can reap the benefits, and are certainly invited to participate.

It is not my intention enter a debate forum, but only to answer legitimate questions about these properties and the auction process. We look forward to seeing each of you there on Saturday. Remember, you only pay one bid more than the last guy.

[Smiling JOe]

I just remembered, auctions are not required to provide the Agency Disclosure to a customer. Please bid accordingly. ;-)

[Babyblue]

Well, I think the auction is a good thing. I will be there. I think the market will heat back up and the people who are buying up the property now that can hold on to it will be glad they did when the market heats up. :biggrin: I just think the negative comments about the auction are worried realtors. :eek: There are always good deals to be made at auctions. The people selling their properties know they have to come down off the ridiculous prices that most people are trying to get for properties that have been for sale for a year. When the prices go down there is a deal to be made.... I will be there and maybe a year from now I can flip the property I bought for a deal at auction to the negative onlookers :confused: for my profit. :clap_1:

[Smiling JOe]

There is nothing wrong with an auction, if the buyer is very informed of the contract and the property, and he or she knows there is no out to the sale.

In the ECAR (emerald coast assoc. of relators) listings, for the last six months, there are two condos which show as sold in auctions in SoWal. Either the properties are not moving, or the Auction people are not properly recording them with ECAR.

If they are not selling, I read a bit of fluff. ;-)

[HighBidder]

FWIW,

The five houses being sold at auction on Saturday will be open one more time for preview from 9:30am-10:30am Saturday morning. The auction will be held at 11:00am Saturday March 4 at Cafe 30A.

This auction was actually put together by Jim Phillips and Michael Harbin of 30A Realty and 30A Auction Services. You are probably aware that they are both SoWal real estate agents. You may not have been aware that they are also quite familiar with the auction process.

You are welcome to call Michael or Jim at the following numbers. They'll be glad to answer your questions and/or show you the properties between now and sale time. You may also call me or Laura Whitt at the 800-number below if you have any questions specifically related to the auction process.

Jim Phillips' Cell 850-276-1316
Michael Harbin's Cell 334-233-2362

We look forward to seeing you at the auction!

Regards,

Scott Oglesby
Higgenbotham Auctioneers
Lakeland, FL
(800) 257-4161

[TN2FLA]

Well, I think the auction is a good thing. I will be there. I think the market will heat back up and the people who are buying up the property now that can hold on to it will be glad they did when the market heats up. :biggrin: I just think the negative comments about the auction are worried realtors. :eek: There are always good deals to be made at auctions. The people selling their properties know they have to come down off the ridiculous prices that most people are trying to get for properties that have been for sale for a year. When the prices go down there is a deal to be made.... I will be there and maybe a year from now I can flip the property I bought for a deal at auction to the negative onlookers :confused: for my profit. :clap_1:

There is no reason for an auction of this type to worry realtors. Realtors can register their buyers and get a little piece of the pie if their buyer wins at the auction. It is just another way for realtors to make some money. I think some people are intimidated by those who think out of the box...

[Babyblue]

You are right. I was just referring to the realtors that were negative about the auction. I agree they can bring people to the table and get a piece of the pie. That is why it is such a great idea everyone wins the seller sells their property and the people helping get their share.

[Babyblue]

A little bit of something is better than nothing at all.

[Cork On the Ocean]

Boy, what a thread this started. :lolabove: Thanks Joe, was tied up yesterday.

Cork-
Like you, I represent the seller. Our fiduciary responsibility is to the seller.

As Joe mentioned, our fiduciary responsibility may vary depending on the representation that the buyer or seller chooses. We may exclusively represent one client and if that client wants to buy something that we have listed, there's a vehicle to transition to transaction brokerage.

Our buyers will only pay what they are willing to pay. When was the last time you told a buyer they were paying too much for your seller's property?...

I have serious ethical concerns with pressuring anybody into anything as your website notes and I simply don't do it. I also have problems with lack of disclosure. I don't need to tell a buyer that they are paying too much for my listed properties because I perform a market analysis and recommend what they should ask. If they don't listen and refuse to price their property to sell, I simply don't list it.

Lastly,we still don't have an answer on the appraisal issue. Suppose the house doesn't appraise for what was paid? Any contingency? If not then the buyer could lose their deposit through no fault of their own if they don't have the additional difference between the sold price and the appraised price which the lender will base the loan on. I would feel awful in a situation like that.

Regarding co-broke commissions, I have considered registering clients and that's what spurred my questions to you. I wanted to advise them of the risks and costs before doing so and it wasn't disclosed on your website. I have to say that I am happy to learn of the reality of auction purchases before my client was in that frenzied environment that you create. This entire thread caused me great concern and I would have to tell my buyers that they are paying all closing costs plus an additional 10% plus the appraisal and inspection risks. Who gives access when a buyer wants to have a professional inspection? Is it on lockbox?

There is nothing wrong with an auction, if the buyer is very informed of the contract and the property, and he or she knows there is no out to the sale.
Ditto! :clap_1:

I think some people are intimidated by those who think out of the box...

Believe me, there's nobody that thinks out of the box more than me. :rolling: so that's not the case. As you mentioned, there is probably more commission if we bring our client to this auction than in a standard deal so our motives are merely to put everything on the table. Not just the fluff. A true buyer would be happy to know that they need to add up to 13% in closing costs and auctions fees which is significant. ie: If you win the bid at 600K, you need to add about $67,800 to you winning price. Any real potential buyer will take this info and consider it when bidding. If they don't, they would be a fool. They would also want to know about the appraisal and inspection issues. If that home goes for 100K below comps, then it might be a good deal if it appraises and has no structural or termite issues.

I noticed that TN2FLA registered on the board about a month ago and that baby blue registered in the last day. I can't help but wonder if you have an interest in the sale?

Thanks for your understanding that we are trying to do what's best for our buyers and the So Wal market in general. Keep in mind, that a $600K home sale price where the buyer is actually paying $667,800, will be recorded as a $600K sale. That brings down the comps and the value of our homes. It should be recorded as $667,800 but it isn't because the extra $67,800 is hidden in costs

[Babyblue]

If you think about it Cork you are not paying more to close! I don't know if you are familiar with this particular auction process. The properties will be reduced significantly from the original prices they were listed on the market for. So the buyer will still come out nicely. An auction is not to trick buyers or pressure them if that were the case they would not be around. I think you may need to contact the companies to ask these questions or concerns you may have before saying something that may not be true to this particular auction.

[Babyblue]

I have to wonder Cork, Do you work for a seller or BUYER?

[HighBidder]

Boy, what a thread this started. :lolabove: Thanks Joe, was tied up yesterday.

***No kidding! <<G>>
***Everyone, please forgive me for not being savvy enough with this to properly change the colors of my text. I'm not too bright so I'll use the asterisks to separate my text. Either way, here we go...


***
***Cork-
I mentioned earlier that I didn't want to get into a debate, but here I am. I am leaving early tomorrow morning and probably won't be able to carry this any further tonight or tomorrow. If you would like to help any of your clients please see me at Cafe 30-A about 10:00 Saturday morning. My name is Scott O., and I'll be easy to find. You may also reach me on my cell at (863) 581-9306. I'm here to help you understand the auction process.


Cork-
Like you, I represent the seller. Our fiduciary responsibility is to the seller.

As Joe mentioned, our fiduciary responsibility may vary depending on the representation that the buyer or seller chooses. We may exclusively represent one client and if that client wants to buy something that we have listed, there's a vehicle to transition to transaction brokerage.


***Understand and agreed.-(Highbidder)


Our buyers will only pay what they are willing to pay. When was the last time you told a buyer they were paying too much for your seller's property?...

I have serious ethical concerns with pressuring anybody into anything as your website notes and I simply don't do it. I also have problems with lack of disclosure. I don't need to tell a buyer that they are paying too much for my listed properties because I perform a market analysis and recommend what they should ask. If they don't listen and refuse to price their property to sell, I simply don't list it.


***A broker's opinion of value is merely that. How many listings are currently sitting idle in your area? Higgenbotham is only interested in representing the property accurately. The buyers are not dumb. By virtue of their bidding they will tell us what the values are.

***Value is a matter of desirability tempered by supply & demand.-(Highbidder)


Lastly,we still don't have an answer on the appraisal issue. Suppose the house doesn't appraise for what was paid? Any contingency? If not then the buyer could lose their deposit through no fault of their own if they don't have the additional difference between the sold price and the appraised price which the lender will base the loan on. I would feel awful in a situation like that.


***We consistently show market values at our auctions. I cannot remember a property failing to close because someone paid too much. Conversely, I can tell you that some very desirable properties have sold well above original asking price and area comps. Again, Supply and Demand. Again, see my earlier posts. You could always have an appraisal done prior to the auction. Bid Accordingly.-(Highbidder)


Regarding co-broke commissions, I have considered registering clients and that's what spurred my questions to you. I wanted to advise them of the risks and costs before doing so and it wasn't disclosed on your website. I have to say that I am happy to learn of the reality of auction purchases before my client was in that frenzied environment that you create. This entire thread caused me great concern and I would have to tell my buyers that they are paying all closing costs plus an additional 10% plus the appraisal and inspection risks. Who gives access when a buyer wants to have a professional inspection? Is it on lockbox?



***There is no inspection risk. Anyone may bring the professional of their choice to inspect any property at their convenience. A 30-A Auction Services representative will gladly provide open, unfettered access. With respect to "frenzied", the auction process is, by nature, exciting and energetic. We don't put guns to anybody's head though. If you want in, just raise your hand and bid accordingly.-(Highbidder)



There is nothing wrong with an auction, if the buyer is very informed of the contract and the property, and he or she knows there is no out to the sale.
Ditto! :clap_1:


***We agree! Twice! Higgenbotham Bid Packets are very comprehensive. It is the buyer's responsibility to confirm, but we work hard to provide only the most accurate and up-to-date information.-(Highbidder)



I think some people are intimidated by those who think out of the box...

Believe me, there's nobody that thinks out of the box more than me. :rolling: so that's not the case. As you mentioned, there is probably more commission if we bring our client to this auction than in a standard deal so our motives are merely to put everything on the table. Not just the fluff. A true buyer would be happy to know that they need to add up to 13% in closing costs and auctions fees which is significant. ie: If you win the bid at 600K, you need to add about $67,800 to you winning price. Any real potential buyer will take this info and consider it when bidding. If they don't, they would be a fool. They would also want to know about the appraisal and inspection issues. If that home goes for 100K below comps, then it might be a good deal if it appraises and has no structural or termite issues.



***Only $60,000 would be added. Just like with your type of deal, the docs stamps have nothing to do with sale price. Can't inflate that one.


I noticed that TN2FLA registered on the board about a month ago and that baby blue registered in the last day. I can't help but wonder if you have an interest in the sale?


***Not that I know of. No idea who that person might be.


Thanks for your understanding that we are trying to do what's best for our buyers and the So Wal market in general. Keep in mind, that a $600K home sale price where the buyer is actually paying $667,800, will be recorded as a $600K sale. That brings down the comps and the value of our homes. It should be recorded as $667,800 but it isn't because the extra $67,800 is hidden in costs


***You are absolutely wrong here. Read my earlier posts! The bid price plus the 10% buyer's premium is added to create the sales and/or contract price.

i.e.-
Bid Price-$600,000.00
Buyer's Premium-$60,000.00
Contract price-$660,000.00

***$660,000.00 is recorded in the county record. As with any other deal, the docs are not recorded as part of the "costs". No "loss" of value!


***You folks have a great day. I hope to see you all at the auction. Please ask Higgenbotham Representatives anything you would like. Education is the key. The auction process is open, fair, and available to anyone. There is no Hocus-Pocus here.

Scott O...

[Cork On the Ocean]

***You are absolutely wrong here. Read my earlier posts! The bid price plus the 10% buyer's premium is added to create the sales and/or contract price.

i.e.-
Bid Price-$600,000.00
Buyer's Premium-$60,000.00
Contract price-$660,000.00

***$660,000.00 is recorded in the county record. As with any other deal, the docs are not recorded as part of the "costs". No "loss" of value!


***You folks have a great day. I hope to see you all at the auction. Please ask Higgenbotham Representatives anything you would like. Education is the key. The auction process is open, fair, and available to anyone. There is no Hocus-Pocus here.

Scott O...

Scott,

Thanks for the clarification. So sounds like as long as bidder adds 10% plus closing costs (sellers doc's and title insurance) to bid price and they have no problem with appraisal, repair/as is issues, that it won't affect our values. Assuming from your language that it's only recorded in county records, not MLS? Will you be posting the sales on the board? I'm sure everyone is interested. Have a client who isn't going to register but stopping by to check it out. If they sell below listed comps with all expenses considered and full disclosure, we'll applaud the process and bring our buyers to your next one. :clap_1:

[Cork On the Ocean]

If you think about it Cork you are not paying more to close! I don't know if you are familiar with this particular auction process. The properties will be reduced significantly from the original prices they were listed on the market for. So the buyer will still come out nicely. An auction is not to trick buyers or pressure them if that were the case they would not be around. I think you may need to contact the companies to ask these questions or concerns you may have before saying something that may not be true to this particular auction.

Hi Blue, I must admit that I'm not familiar with this particular auction's process. That's truly why I asked. You didn't say whether one of them are yours but I would guess the beautiful gulf front lot is yours :D and I agree that the lots will be significant (at least 8%), putting that lot at $2,240,000 which would be the same as what it's listed at but the buyer will pay approx. 13% above the sold price which means to get it at the current full listed price, they'd have to get it at $2,118,450 and that would have been the same (approximately) if they gave full price. Since many homes sell for 98% of asking, if I were buying it at auction, I personally wouldn't pay more than $2,076,081 which would be about the same as contract negotiation situation.

To answer you question, I represent both buyers and sellers depending on their wishes. When I act as a transaction broker, I try to establish a win-win situation for both the buyer and seller.

I was just referring to the realtors that were negative about the auction. I agree they can bring people to the table and get a piece of the pie.That is why it is such a great idea everyone wins the seller sells their property and the people helping get their share. I will be there and maybe a year from now I can flip the property I bought for a deal at auction to the negative onlookers :confused: for my profit.

If I'm representing a buyer, then I want to make sure they win as well.
I have discussed the possibility of using an auctioneer with one of my sellers who I have sole representation with, so don't get me wrong, I'm not against them. I have learned a wealth of info in this thread and it was my understanding that I was directing my questions to the company that's conducting the auction because they posted it here and represented themselves as a "professional ringman". If you're the owner of that wonderful lot, I truly wish you luck and if you get your price, my seller and I will be looking at the process closely as an option. Good Luck at the auction and keep us posted.

[HighBidder]

Scott,

Thanks for the clarification. So sounds like as long as bidder adds 10% plus closing costs (sellers doc's and title insurance) to bid price and they have no problem with appraisal, repair/as is issues, that it won't affect our values. Assuming from your language that it's only recorded in county records, not MLS? Will you be posting the sales on the board? I'm sure everyone is interested. Have a client who isn't going to register but stopping by to check it out. If they sell below listed comps with all expenses considered and full disclosure, we'll applaud the process and bring our buyers to your next one. :clap_1:

Cork,
Thanks for the questions you've presented in the last day or so. Sometimes we don't truly realize what people "don't" understand unless they really challenge us to explain ourselves. You have a good understanding now of what we do, & how. Saturday will be fun.

With regard to values, at this point I won't even hazard a guess as to where they end up compared to comps & asking prices. There seems to be an awful lot of property on the market in that area. It won't last long but it will probably weaken the bid price. What you can be sure of is that the buyers will have a stopping point, and only they really know where that is. As I said before, in the past I have seen auction values both above and below area comps and appraisals. The buyers will tell us what the property is worth right now. We'll all be a lot smarter on Saturday afternoon.

We don't utilize MLS services as we sell all over the country and consequently couldn't be a member of each group. 30-A Auction Services may choose to, though. If so, then I would applaud it.

Get registered by your visiting buyer by Friday afternoon. It won't cost you anything but preventing the risk of lost opportunity. If your buyer should decide to jump in & buy, I couldn't pay you unless you are properly registered. Contact Karen in my office for a BP form. She'll fax it right out. (800) 257-4161

Long day tomorrow. Please contact me on my cell should anyone have any questions. (863) 581-9306

See you at the auction.

[HighBidder]

If you think about it Cork you are not paying more to close! I don't know if you are familiar with this particular auction process. The properties will be reduced significantly from the original prices they were listed on the market for. So the buyer will still come out nicely. An auction is not to trick buyers or pressure them if that were the case they would not be around. I think you may need to contact the companies to ask these questions or concerns you may have before saying something that may not be true to this particular auction.


Thanks for the vote of confidence, Blue.

With one exception, you certainly have a good understanding of how this works. That exception would be lower price. Although in this case I believe you'll probably be right, the beauty if the auction is that buyers set the value. If strong buyer representation is present, we can only hope that the seller realizes that we have acheived market value for that particular property, under those terms & conditions, at that particular time. When the seller understands that we have all the money that is available, they then decide whether they would rather have the cash, or continue to hold the property(and it's associated costs) indefinitely, or throw the deal on the table out and continue to negotiate by private treaty (Risky...the buyer is free to walk).

As you can see, it's just as important for a seller to understand the entire process as it is for the buyer!

I'm on the road in 30 minutes to see you guys. Let's have an auction!

[Cork On the Ocean]

Cork,
Thanks for the questions you've presented in the last day or so. Sometimes we don't truly realize what people "don't" understand unless they really challenge us to explain ourselves. You have a good understanding now of what we do, & how. Saturday will be fun.

With regard to values, at this point I won't even hazard a guess as to where they end up compared to comps & asking prices. There seems to be an awful lot of property on the market in that area. It won't last long but it will probably weaken the bid price. What you can be sure of is that the buyers will have a stopping point, and only they really know where that is. As I said before, in the past I have seen auction values both above and below area comps and appraisals. The buyers will tell us what the property is worth right now. We'll all be a lot smarter on Saturday afternoon.

We don't utilize MLS services as we sell all over the country and consequently couldn't be a member of each group. 30-A Auction Services may choose to, though. If so, then I would applaud it.

Get registered by your visiting buyer by Friday afternoon. It won't cost you anything but preventing the risk of lost opportunity. If your buyer should decide to jump in & buy, I couldn't pay you unless you are properly registered. Contact Karen in my office for a BP form. She'll fax it right out. (800) 257-4161

Long day tomorrow. Please contact me on my cell should anyone have any questions. (863) 581-9306

See you at the auction.

High,

I have asked my buyer if he wanted to register. He's an out of state realtor and prefers to have us show him properties. He assures me that he has no interest at buying at auction and will be meeting with one of my agents on Sunday for showings.

Understand the MLS costs, belong to 3 of them across state. Do we have a smiley with empty pockets, Kurt? :lol:

Will be looking forward to the outcome and we'll be having some open houses from Watercolor through West Panama City Beach to piggyback onto your great advertising :biggrin: . Thanks for bringing buyers to the area this weekend. Hope we get some stuff moving.

Good Luck

[imasunbum]

Any comments on the auction this morning? Anybody attend that might have info?

[GaltsGulch]

Also awaiting word on how the auctions went off. Please post if anyone has any info.

[Smiling JOe]

Yes, where is High Bidder? I hope the auctions went well. We need the details, please.

[Rita]

Yes, where is High Bidder? I hope the auctions went well. We need the details, please.


:idontno: Maybe counting his money? :razz:

http://i38.photobucket.com/albums/e129/gulfwindsway/1088854152810_cashier_counting_mone.gif

[ecopal]

I have heard from people who attended the auction Saturday that it did not go well. Top bids on some properties were about half of what sellers hoped for. Of the few properties that did sell it is my understanding that the bids were low and the sellers can have so many days to back out of the deal. However, I look forward to hearing more reliable specifics.

[HighBidder]

Well Gang,

I'm here. We had a large crowd and the bidding was about where we expected it to be.

I'll be glad to expand on the auction results, but I too have been waiting to hear the opinion of all the pundits who were so eager to bless us with their knowledge prior to the sale.

I'm sure some of them were in attendance. Let's hear what they have to say.

[Rita]

Well Gang,

I'm here. We had a large crowd and the bidding was about where we expected it to be.

I'll be glad to expand on the auction results, but I too have been waiting to hear the opinion of all the pundits who were so eager to bless us with their knowledge prior to the sale.

I'm sure some of them were in attendance. Let's hear what they have to say.


:confused: This is confusing to me .... why do you care about "pundits" when you have the facts?

[HighBidder]

:confused: This is confusing to me .... why do you care about "pundits" when you have the facts?


Hi Rita,

Cool Pic.

I spent a tremendous amount of time last week trying to belay a significant amount of anxiety that had no material basis in fact. None, at least, with respect to our company and the auction process in general.

I'm really under the gun at work now, but here's the scoop...

I'll respond at length iin a day or so. In the meanwhile I'd like to hear the opinions freely announced in this forum by anyone who did, in fact, attend the auction.

BTW, as noted earlier, bid prices acheived were only about half what sellers were hoping for, but most sellers would have made a siginificant profit in comparison to purchase price. Please note the number of properties currently on the market in your area, and then read my earlier posts regarding supply & demand.

I'll talk about it all at length in a day or so.

Take care.

[SHELLY]

BTW, as noted earlier, bid prices acheived were only about half what sellers were hoping for, but most sellers would have made a siginificant profit in comparison to purchase price. Please note the number of properties currently on the market in your area, and then read my earlier posts regarding supply & demand.


This is exactly the response I expected you would get at this stage of the game. Lots of owners who are being overly optimistic in the face of reality. (Most are waiting for the big Spring buying rush. :confused: )

What I'd like to know is what kind of buzz you heard at the bar from all the "pre-qualified" buyers you brought to the show. (Let me guess..."We'll just wait a few more months and bid 20% lower.")

[Franny]

Yes, I was at the auction on Saturday and as far as I could tell the high bid was about 50% of today's market value. The gulf front lot received a high bid of $1.25ml, obviously not accepted. The only bids that may have been accepted were located in Seacrest Development. The high bid for each was $185,000. The realtor had to call the seller for acceptance of this bid. If you guys want all the bidding information let me know. I will say the auction was interesting and because it was my first I learned quite a bit. However, as a realtor, buyer and seller auctions do not intimidate me! I actually contacted a client regarding another auction this weekend. Good day to all.

[SHELLY]

Yes, I was at the auction on Saturday and as far as I could tell the high bid was about 50% of today's market value. The gulf front lot received a high bid of $1.25ml, obviously not accepted.


Next stop: e-Bay or craigslist.

[Skerm]

Franny,
Do you know which Seacrest lots were sold at $185K???

Were they the four together at Trigger Lane or the two at the Village??

Thx. :idontno:

[Franny]

Franny,
Do you know which Seacrest lots were sold at $185K???

Were they the four together at Trigger Lane or the two at the Village??

Thx. :idontno:
Hi Skerm,
They were the three adjacent lots on Trigger Trail, #8, 9, and 10. But as I mentioned before we did not learn at the auction if these bids were accepted by the seller. I will keep a close look at MLS to find out more and will share with the board.
Franny

[Skerm]

Thanks mucho Franny!
:clap_1:

[Cork On the Ocean]

Sorry for delay. Left town Friday but had 3 people at the auction. Let me clarify that I was not there so am getting second hand and paraphrasing. They said there was about 150 people there. All 3 said it was embarassing. That the auctioneer actually stopped one and said that he wouldn't let the seller take the offered price or something like that. I was told that they explained all the rules of the auction up front but didn't mention the appraisal issue and of course said they were "as is". Was told that they did address the doc stamps, title policy issue and at one point told buyers that some or all of these costs would be paid by the seller for all of the auctions but then they took it back and said buyer pays them. :idontno: High can clarify if he wants.

Also was told that the seller has 3 days to decide if the bid will be taken so as Franny said, even if it "sells" at auction, it may not be sold. Just as everyone has reported, I was told that bids were ridiculous, when they got them (about 50%). 2 of my people were there for several hours and said only 3 out of about 18 properties had been "sold" (don't know what to call it since they probably won't take the offer) . Those 3 were the beachfront lot and seacrest lots.

Only 2 of the lots on Trigger Trail were entered into the MLS after they were subdivided (lots 5&6) and looks like the owner, (both owned by same person )paid $295 per lot in 4/04 so I can't imagine him taking the $185K offer. If I remember correctly, I was looking at those lots before they were released and the agent told me that they were going to be much higher than $295 so I wouldn't be surprised if all 4 lots are owned by the same person. The county records still doesn't have a card on them. Wasn't somebody just saying how up to date the county records are? These are 2 year old sales!

In speaking to one of my clients, he indicated that he was under the impression that the seller does pay something for the attempted auction in addition to the buyer's 10% fee. Can anybody tell us if this is true? High? Baby Blue? Am truly interested.

I would assume that someone had significant expenses putting the auction on so it would make sense that the seller would have to pay expenses of some sorts.

When I asked one of my people to give me an honest answer regarding whether he would buy at an auction like that after having seen it - he said no, prices were about the same as listed.

When I asked if he would sell one through an auction, he also said no, it was a waste of time and would just tick him off.

So it doesn't sound like it was very successful at all but the good news is people showed up and are still interested in the area, they just want to get in for less than our values are right now. Any developers out there? Affordable family housing! They keep building them nicer and nicer with hugh sq footage, elevators etc. I certainly dont mind but it's looking like the VERY wealthy will be the ones buying South Walton in the future. Does that make those of us who own very wealthy? :biggrin:

[Cork On the Ocean]

Hi Rita,

BTW, as noted earlier, bid prices acheived were only about half what sellers were hoping for, but most sellers would have made a siginificant profit .

Take care.

So if bids were half of market price (by all reports) and that was half of what sellers were hoping for, it sounds like sellers were hoping to get market price.

Would like to know if there was any of the properties where the seller was willing to take 70-75% of market price? My thoughts are that since the property could sell as low as 90% on the open market, when you subtract the additional 13% the buyer is paying , plus risks outlined below, I would want to see these properties going at least 75% of market or lower to motivate me to buy one. I wonder if any were priced that low. :idontno: Anybody?

[Smiling JOe]

Jellyfish-
Lower Price? Not necesarily. There are a number of reasons why a seller would utilize the auction method of marketing. The most significant is the ability to sell their property at a pre-determined time, and at fair market value. With qualified buyers in attendance, the property will acheive fair market value. No more. No less. In many cases, highly desirable property will sell for more than the initial asking price.

I questioned this first statement in bold text, and since we are not hearing about all of the sales, my suspitions appear to hold true.

Regarding qualified buyers, I define a qualified buyer as someone who is not only able to purchase, but someone who is also willing to purchase. It sounds like the "buyers" who showed up were hoping for prices of desperation, not the going list price or a small reduction, thereby making them un-qualified in my terms, aka tire kickers or sight-seeers.

As for the last sentence, I guess there were not many cases at the last auction. :idontno:

In summary, how can we do nothing more than speculate? I have not and probably will not in the future, based on history, see the auctions in the ECAR's listings.

[30A Skunkape]

I guess I am terribly naive but it seems to me that if you put your property up for auction, you suck it up and sell for what your property goes for at gavel. Otherwise, you stick the little 'for sale' sign in the sand, pay your taxes and wait for a bite. :razz:

[Smiling JOe]

I guess I am terribly naive but it seems to me that if you put your property up for auction, you suck it up and sell for what your property goes for at gavel. Otherwise, you stick the little 'for sale' sign in the sand, pay your taxes and wait for a bite. :razz:If I were auctioning one of my properties, I would not do so without a reserve, especially these days. I doubt if any of the 21 properties at Saturday's auction were without reserve.

[Franny]

You are right SJ there were no absolutes at the auction unlike the upcoming auction this weekend. Also Cork, the beachfront bid was NOT accepted at the auction for a high bid of 1.25m.

[ecopal]

The poor results at the auction may just reflect current market conditions. The mindset of many buyers now is "either take my low offer or I walk and wait".

[beclareesq]

Does anybody else think that this auction reflects the current state of the market? Supply would appear to far outdistance any demand. What demand there is is trying to establish the "market" far below asking prices. Sellers still have the luxury of holding and so they do. Soon there likely will be some that don't and so they won't. Only then will the "market" be established. The only logical reading of the current situation is that the market is in a downward transition, the only mystery remains the depth. I take that back, I think it is a mystery that there are so many units on the market, in today's climate, offered by sellers who don't seem to want to accept the reality of the market. Why don't they pull the units off and lower the supply numbers? They are helping to create the very momentum they refuse to recognize. That is a second mystery.

[Babyblue]

Hello group! :razz: Sorry I have been out of town since the auction. I was there and it was standing room only. Buyers from out of state as far as Texas. All of the other auction companies were there looking on. I do not know how many sold but seemed like a few. Hey but one sale in hour and half is not bad compared to months years on the market. I think I counted 15 buyers or bidders. Any way that is all I have to report other than based on the bids, the boom is over.

[Beachlover2]

Why don't they pull the units off and lower the supply numbers? They are helping to create the very momentum they refuse to recognize.

This is so true in my opinion. If you aren't intent on selling - then why are you listing.
Oh and by the way I am a half full person.

[ecopal]

I have heard that some sellers are being pressured by their neighbors not to list or sell too low or it will hurt the neighborhood's market value.

However, flippers stuck with a buildout time lot are either going to have to sacrifice their lot at a low price or build. In Watercolors lot owners are having to pay $2500.00 a month for every month they do not build after the deadline start date in their contract.

[SHELLY]

So if bids were half of market price (by all reports) and that was half of what sellers were hoping for, it sounds like sellers were hoping to get market price.

Would like to know if there was any of the properties where the seller was willing to take 70-75% of market price? My thoughts are that since the property could sell as low as 90% on the open market, when you subtract the additional 13% the buyer is paying , plus risks outlined below, I would want to see these properties going at least 75% of market or lower to motivate me to buy one. I wonder if any were priced that low. :idontno: Anybody?

THERE IS NO MARKET PRICE for these properties. The owners are not willing to sell for price the public is willing to pay (both inside and outside the auction--otherwise they would not have been at the auction in the first place)....AND...the buyers are not willing to pay the amount the seller is asking for these properties. (The closest the buyer came to the actual current market price of their property is the highest bid he got at the auction.)

The buyers can now add any costs they incurred for the auction to the carrying costs of the properties and continue to hold out until someone blinks. With inventories raising in Florida (and across the nation) on a daily basis (we've run out of bigger fools?), and carrying costs mounting daily for investulators, my money is on the sellers being the first to blink (or ride the slippery slope down to unprofitability like their stock market brethren before them did during the dot.com bust). In a stagnant market, every day that passes means carrying costs in the form of taxes, insurance and interest eat away at the profit.

A vacation/second home is certainly not a "must buy now" purchase. I think buyers who are toying with the idea of purchasing in Florida are quite willing to hold out until after the hurricane season ends--or until they get the price "they" are willing to pay.

[Jellyfish]

It sounds like the "buyers" who showed up were hoping for prices of desperation, not the going list price or a small reduction, thereby making them un-qualified in my terms, aka tire kickers or sight-seeers.

SJ- I agree with most of your opines on this board, but have to cry out here.
What the heck is a "fair" price - is it 90% of 2005's inflated value so an overextended investor can bail out with a profit? Smart buyers will wait and get as close to a desperation price as possible. If in that process they never buy and miss the boat, they lose. Over the past 3-5 years it's been all seller's market, now it's a buyers market. A small reduction over an inflated, "aspiration" price is no bargain. On the other side of the coin, list price may be a relative bargain if listed aggressively.

In my experience, anyone showing up at an auction (unless it's Sothebys) is looking for a smokin' deal....

[Smiling JOe]

The poor results at the auction may just reflect current market conditions. The mindset of many buyers now is "either take my low offer or I walk and wait".

Perhaps the other possible reason for lack of any sales at the auction (maybe only two sales of 21), is that the weather was so nice and warm for a change, that all of the real buyers were enjoying the beach. :idontno:

[Smiling JOe]

Hey but one sale in hour and half is not bad compared to months years on the market.
That is not a true picture given the number of weeks of advertising leading up to the auction. Also, I have not heard of an actual sale from this auction. Did a property sell?

I think I counted 15 buyers or bidders.
15 bidders for 21 properties is a week turnout in my mind, not different from the normal market.

[Smiling JOe]

SJ- I agree with most of your opines on this board, but have to cry out here.
What the heck is a "fair" price - is it 90% of 2005's inflated value so an overextended investor can bail out with a profit? Smart buyers will wait and get as close to a desperation price as possible. If in that process they never buy and miss the boat, they lose. Over the past 3-5 years it's been all seller's market, now it's a buyers market. A small reduction over an inflated, "aspiration" price is no bargain. On the other side of the coin, list price may be a relative bargain if listed aggressively.

In my experience, anyone showing up at an auction (unless it's Sothebys) is looking for a smokin' deal....

Glad to shake things up. I don't want everyone riding in my boat -- we may sink. :floor:

I am not sure that I understand your question about a fair price. I never mentioned fair price. IMO, a fair price is a meeting ground between a buyer and seller, and as far as I can tell, it sounds like no fair price was established. Many sellers still love their property to much, and I too, wonder why they are placing them on the market since they love them too dearly. Personally, I think many prices are way too high to sell today. Attractively priced properties are out there and some sell quickly, and others have not. After seeing the listings not sell for 6+ months, the sellers should reconsider their asking prices if they are truly wanting to sell.

[Camp Creek Kid]

Perhaps most people misjudged what this auction was all about. These properties weren't in foreclosure, but when I hear "real estate auction," I think of desperation or "smokin' deals". Obviously that wasn't the case here. Isn't this a rather new way of selling properties?

[Jellyfish]

I am not sure that I understand your question about a fair price. :idontno:

Me neither, kinda went off on a tangent....

Anyways, what I was trying to say is auctions seem to work at the extremes- strong buyers or strong sellers market.

[pgurney]

Perhaps most people misjudged what this auction was all about. These properties weren't in foreclosure, but when I hear "real estate auction," I think of desperation or "smokin' deals". Obviously that wasn't the case here. Isn't this a rather new way of selling properties?

That's what I'm thinking too. "Real estate auction" conjures up images of the courthouse steps for me.

[kurt]

Auctions seem to take on a flavor and bring results depending on the local market. I have worked with an outfit over the last 4 years that has done constant aucions in the Destin and Sandestin market and has sold properties seemingly at market value. I believe the sellers and buyers were savvy and got the deals done in a timely and efficient manner. A lot depends on the marketing beforehand and the database of buyers/investors the auction company has.

In a dire market the results are likely to be much different than a hot, or a normal market.

[DuneDog]

When properties at an auction have a "reserve" I dont think you get true buyers making bids. You get people who feel safe bidding on that 2M property for 1M . They will never hit the reserve, it is wishful thinking. Even though it would be a good deal those bidders think twice before bidding 1.7 or 1.8 million because they know they might hit the reserve and actually have to buy it. If I were really looking to purchase a 2M lot I would definitely take a shot at an auction and bid up to 80% or 85% of its value. (net of the buyers premium)

IMHO, an absolut auction, particularly if there are ready and able bidders present would definitely drive the price close to what its true markey value is, sometimes higher if a frenzy is started.

[Smiling JOe]

:idontno:

Me neither, kinda went off on a tangent....

Anyways, what I was trying to say is auctions seem to work at the extremes- strong buyers or strong sellers market. Strong buyers only if it is an absolute auction.

[Cork On the Ocean]

Personally, I think we should start putting properties on Ebay :rolling:

We're so spoiled here. I remember a few years back in Tampa Bay, homes would be on the market well over 6 months. It was expected.

I have heard that some sellers are being pressured by their neighbors not to list or sell too low or it will hurt the neighborhood's market value

None of us want a blue light special in our neighborhood but it happens every day in every area. A divorce, a bankruptcy, a death. Sellers need to do what's right for their particular situation. If they have it priced right and are patient, it will eventually sell. If they need the cash, then they need to do what they need to do to protect themselves from financial problems.

Do we know if there were any sales at the auction?:idontno:

There's another one coming up in Destin - different company.

[HighBidder]

Okay Gang. Here I come. I do want to say that I'm pleased with ALL of the chatter over the last few days, and even agree with most all of it. The market is certainly in transition, if not somewhat in turmoil. Actually no, the market is not in turmoil, but the owners and agents who failed to recognize the advent of the market transition most certainly are.

Essentially, we are currently experiencing a market adjustment resulting from the non-sustainable increases in real estate market values. No different that the stock market adjustment a few years ago.

I am going to begin replying to each post individually, but some may be answered in the response to someone else. Please bear with me.

[HighBidder]

Perhaps most people misjudged what this auction was all about. These properties weren't in foreclosure, but when I hear "real estate auction," I think of desperation or "smokin' deals". Obviously that wasn't the case here. Isn't this a rather new way of selling properties?


Hi Camp,

The auction process is not a new way of selling property, whether real or personal. It is actually the oldest recorded method of selling any item, dating back thousands of years and used throughout the world. Notify the prospective buyers and offer the property for sale, selling to the highest and best bidder. The auction chant as we know it today originated about 150 years ago and is uniquely American.

The auction method of marketing has a stigma of "distress" due primarily to the advent of mass communications combined with several serious economic adjustments in United States history.

What do I mean by this?

The Great Depression was the first major market adjustment in US history, a result of the incredible (and unsustainable) economic boom of the Industrial Revolution. Beginning in 1929, massive dollar volumes of assets were suddenly available on the market and with no buyers available to purchase these assets. The auction process was utilized as always to find the highest and best buyer, but at a frequency never before seen, much less reported upon in the media & history books. In this case the auction process did exactly what it was designed to do, acheive the highest and best dollar available for the seller under that day's terms and conditions.

In more recent memory we experienced a massive selloff due to the S&L/RTC fiasco. Everyone here remembers all the media coverage of that.

Under our current situation, some of the problem is that so many properties are on the market not because the seller is intent upon selling, but rather "hoping" to reap the rewards of the boom. Now supply significantly exceeds demand thereby killing a market that was questionably sustainable to begin with, and we haven't even touched on "interest only loans" yet.

The auction process is an incredibly fair method of marketing, and is the best way to exchange assets for the highest possible dollar value under the current set of conditions, whatever those might be.

[HighBidder]

Sorry for delay. Left town Friday but had 3 people at the auction. Let me clarify that I was not there so am getting second hand and paraphrasing. They said there was about 150 people there. All 3 said it was embarassing. That the auctioneer actually stopped one and said that he wouldn't let the seller take the offered price or something like that. I was told that they explained all the rules of the auction up front but didn't mention the appraisal issue and of course said they were "as is". Was told that they did address the doc stamps, title policy issue and at one point told buyers that some or all of these costs would be paid by the seller for all of the auctions but then they took it back and said buyer pays them. :idontno: High can clarify if he wants.

Also was told that the seller has 3 days to decide if the bid will be taken so as Franny said, even if it "sells" at auction, it may not be sold. Just as everyone has reported, I was told that bids were ridiculous, when they got them (about 50%). 2 of my people were there for several hours and said only 3 out of about 18 properties had been "sold" (don't know what to call it since they probably won't take the offer) . Those 3 were the beachfront lot and seacrest lots.

Only 2 of the lots on Trigger Trail were entered into the MLS after they were subdivided (lots 5&6) and looks like the owner, (both owned by same person )paid $295 per lot in 4/04 so I can't imagine him taking the $185K offer. If I remember correctly, I was looking at those lots before they were released and the agent told me that they were going to be much higher than $295 so I wouldn't be surprised if all 4 lots are owned by the same person. The county records still doesn't have a card on them. Wasn't somebody just saying how up to date the county records are? These are 2 year old sales!

In speaking to one of my clients, he indicated that he was under the impression that the seller does pay something for the attempted auction in addition to the buyer's 10% fee. Can anybody tell us if this is true? High? Baby Blue? Am truly interested.

I would assume that someone had significant expenses putting the auction on so it would make sense that the seller would have to pay expenses of some sorts.

When I asked one of my people to give me an honest answer regarding whether he would buy at an auction like that after having seen it - he said no, prices were about the same as listed.

When I asked if he would sell one through an auction, he also said no, it was a waste of time and would just tick him off.

So it doesn't sound like it was very successful at all but the good news is people showed up and are still interested in the area, they just want to get in for less than our values are right now. Any developers out there? Affordable family housing! They keep building them nicer and nicer with hugh sq footage, elevators etc. I certainly dont mind but it's looking like the VERY wealthy will be the ones buying South Walton in the future. Does that make those of us who own very wealthy? :biggrin:


Hi Cork,

In this auction we had several different sellers. Several were willing to pay doc stamps, while several wanted the buyer to pay for the stamps. Prior to commencement of bidding, the auctioneer made a decision that all stamps would be paid by the buyers to eliminate confusion on the part of the buyers (Remember "Terms & Conditions". This goes under the heading of "Please Bid Accordingly). The intent was to simplify the process.

In most cases, the seller typically pays for the advertising budget in advance of the auction. This is the direct cost of advertising and marketing the sale. None of these proceeds are retained by our firm.

We did have a pile of people at the auction, but only about 15 bidders. The values were set in at about 50-60% of current listing prices. These are not "bottom feeders". Both stats are representative of current market conditions. It is important to realize that asking prices do not establish market values, but merely reflect past market values. Current transactions represent current market values. If no transactions are occuring, wouldn't it then be safe to assume that the market values are significantly lower than owners/sellers are willing to admit? What percentage of total properties are currently listed? SoWal has a serious Supply & Demand issue, hence the adjustment in property values that are currently being experienced.

[HighBidder]

So if bids were half of market price (by all reports) and that was half of what sellers were hoping for, it sounds like sellers were hoping to get market price.

Would like to know if there was any of the properties where the seller was willing to take 70-75% of market price? My thoughts are that since the property could sell as low as 90% on the open market, when you subtract the additional 13% the buyer is paying , plus risks outlined below, I would want to see these properties going at least 75% of market or lower to motivate me to buy one. I wonder if any were priced that low. :idontno: Anybody?


I would submit that the term "Market Price" is being confused with "Asking Price".

[HighBidder]

I questioned this first statement in bold text, and since we are not hearing about all of the sales, my suspitions appear to hold true.

Regarding qualified buyers, I define a qualified buyer as someone who is not only able to purchase, but someone who is also willing to purchase. It sounds like the "buyers" who showed up were hoping for prices of desperation, not the going list price or a small reduction, thereby making them un-qualified in my terms, aka tire kickers or sight-seeers.

As for the last sentence, I guess there were not many cases at the last auction. :idontno:

In summary, how can we do nothing more than speculate? I have not and probably will not in the future, based on history, see the auctions in the ECAR's listings.


Hi Joe,

These bids were not "prices of desperation", but rather "bids of reality".
All our buyers were qualified buyers. All were willing to buy...at a price. With the sheer volume of property on the market in SoWal there is absolutely no need for a buyer to pay anywhere near the current asking prices. There is also no need to be in any hurry to buy. Many are just waiting to see how far this market is going to fall. Once the owners/sellers/brokers realize that the current asking prices are not sustainable, then you'll see the market react to the purchase prices being offered.

BTW, the bid prices achieved at auction were far, far higher than most of these properties were purchased for just 3-6 years ago. The inability to recognize the changing market prevented most of these sellers from realizing a still significant profit, not to mention the elimination of any associated debt burden.

[Smiling JOe]

"The most significant (benefit for auctioning) is the ability to sell their property at a pre-determined time"

So, were you able to provide the most significant benefit to the people trying to sell their property? Why have we not heard of any sales? Did anything sell? Have I answered my own questions?:idontno:

[HighBidder]

I guess I am terribly naive but it seems to me that if you put your property up for auction, you suck it up and sell for what your property goes for at gavel. Otherwise, you stick the little 'for sale' sign in the sand, pay your taxes and wait for a bite. :razz:

Hi Skunk,

You pretty well hit the nail on the head. :lolabove:

We'll bring the buyers, but in a market like this, the best thing for a buyer to understand is that the sellers are motivated. Once the buyers are motivated, then I can truly go to work to bring them the very highest dollar available. Once things are adjusted, it also won't take long for the market to start easing back up, either. Relatively speaking.

[DuneDog]

Highbidder,

I would also like to know if anything sold.

[Smiling JOe]

Hi Joe,

These bids were not "prices of desperation", but rather "bids of reality".
All our buyers were qualified buyers. All were willing to buy...at a price. With the sheer volume of property on the market in SoWal there is absolutely no need for a buyer to pay anywhere near the current asking prices. There is also no need to be in any hurry to buy. Many are just waiting to see how far this market is going to fall. Once the owners/sellers/brokers realize that the current asking prices are not sustainable, then you'll see the market react to the purchase prices being offered.Knowing this, why did you waste your time and money knowing that the prices which were bid would not meet the reserve prices set by the sellers? That is not smart business.

BTW, the bid prices achieved at auction were far, far higher than most of these properties were purchased for just 3-6 years ago.Name one example please. What is the parcel id and what was the bid?:idontno: I don't know what was auctioned, but I believe you must have made a typo.

[HighBidder]

If I were auctioning one of my properties, I would not do so without a reserve, especially these days. I doubt if any of the 21 properties at Saturday's auction were without reserve.



Joe,

Using a reserve is a good thing in many circumstances, maybe even most. However, if a seller is not realistic about the current market value of their property then it is best to utilize conventional marketing to sell the asset. Eventually, the market will rise to meet the anticipated price.

[HighBidder]

You are right SJ there were no absolutes at the auction unlike the upcoming auction this weekend. Also Cork, the beachfront bid was NOT accepted at the auction for a high bid of 1.25m.


Franny,

You are correct. There is no more accurate barometer to establish market value than a properly advertised absolute auction. The market will protect itself, however many sellers don't have the stomach for it. No crime in that.

I hope to hear from you all as to how that auction goes.

[Smiling JOe]

Hi Skunk,

You pretty well hit the nail on the head. :lolabove:

We'll bring the buyers, but in a market like this, the best thing for a buyer to understand is that the sellers are motivated. Once the buyers are motivated, then I can truly go to work to bring them the very highest dollar available. Once things are adjusted, it also won't take long for the market to start easing back up, either. Relatively speaking.


I find your statements confusing. Sellers are not motivated -prices and lack of sales show this. This really makes me question how many properties truly are for sale. The inventory of properties is far greater than the wish list of sellers, IMHO.

[HighBidder]

Does anybody else think that this auction reflects the current state of the market? Supply would appear to far outdistance any demand. What demand there is is trying to establish the "market" far below asking prices. Sellers still have the luxury of holding and so they do. Soon there likely will be some that don't and so they won't. Only then will the "market" be established. The only logical reading of the current situation is that the market is in a downward transition, the only mystery remains the depth. I take that back, I think it is a mystery that there are so many units on the market, in today's climate, offered by sellers who don't seem to want to accept the reality of the market. Why don't they pull the units off and lower the supply numbers? They are helping to create the very momentum they refuse to recognize. That is a second mystery.


Amen.

[Smiling JOe]

Joe,

Using a reserve is a good thing in many circumstances, maybe even most. However, if a seller is not realistic about the current market value of their property then it is best to utilize conventional marketing to sell the asset. Eventually, the market will rise to meet the anticipated price.Then why would you waste your time on going through the motions, knowing that a seller's reserve price is way higher than the "real price," as you say? I know the sellers like their property very much. I do not question that the prices are too high, just look at the lack of sales to show it. My question is just as I state, why waste your time, money and effort trying to sell today, what may have to wait a year to sell at that price?

Please let me say that I think the auction business is very legit and can serve a great purpose to many peoples needs. I do not question your abilities or professionalism as an auctioneer, highbidder. That is not my intention. My intention is to seek the truth behind the sales. I certainly appreciate your point of view, and to better understand anything, I think we should first question everything. ;-)

[HighBidder]

I have heard that some sellers are being pressured by their neighbors not to list or sell too low or it will hurt the neighborhood's market value.

However, flippers stuck with a buildout time lot are either going to have to sacrifice their lot at a low price or build. In Watercolors lot owners are having to pay $2500.00 a month for every month they do not build after the deadline start date in their contract.

I'll second that. I base my decisions on my reality, not my neighbor's reality.

Many flippers are holding the proverbial hot potato. Oops.

[HighBidder]

THERE IS NO MARKET PRICE for these properties. The owners are not willing to sell for price the public is willing to pay (both inside and outside the auction--otherwise they would not have been at the auction in the first place)....AND...the buyers are not willing to pay the amount the seller is asking for these properties. (The closest the buyer came to the actual current market price of their property is the highest bid he got at the auction.)

The buyers can now add any costs they incurred for the auction to the carrying costs of the properties and continue to hold out until someone blinks. With inventories raising in Florida (and across the nation) on a daily basis (we've run out of bigger fools?), and carrying costs mounting daily for investulators, my money is on the sellers being the first to blink (or ride the slippery slope down to unprofitability like their stock market brethren before them did during the dot.com bust). In a stagnant market, every day that passes means carrying costs in the form of taxes, insurance and interest eat away at the profit.

A vacation/second home is certainly not a "must buy now" purchase. I think buyers who are toying with the idea of purchasing in Florida are quite willing to hold out until after the hurricane season ends--or until they get the price "they" are willing to pay.


You're on it, Shelly. I agree with everything you said except "--otherwise they would not have been at the auction in the first place)". The auction is a great way to sell property, and do so at market value.

Oh yeah, there IS a market value. We just don't know what it is...yet.

[HighBidder]

SJ- I agree with most of your opines on this board, but have to cry out here.
What the heck is a "fair" price - is it 90% of 2005's inflated value so an overextended investor can bail out with a profit? Smart buyers will wait and get as close to a desperation price as possible. If in that process they never buy and miss the boat, they lose. Over the past 3-5 years it's been all seller's market, now it's a buyers market. A small reduction over an inflated, "aspiration" price is no bargain. On the other side of the coin, list price may be a relative bargain if listed aggressively.

In my experience, anyone showing up at an auction (unless it's Sothebys) is looking for a smokin' deal....



Been a long time since I've said this many "Amens".

[HighBidder]

That is not a true picture given the number of weeks of advertising leading up to the auction. Also, I have not heard of an actual sale from this auction. Did a property sell?


15 bidders for 21 properties is a week turnout in my mind, not different from the normal market.


Exactly. Weak. Once sellers realize what they are truly facing and are properly motivated, you'll start seeing serious buyer activity.

[HighBidder]

Glad to shake things up. I don't want everyone riding in my boat -- we may sink. :floor:

I am not sure that I understand your question about a fair price. I never mentioned fair price. IMO, a fair price is a meeting ground between a buyer and seller, and as far as I can tell, it sounds like no fair price was established. Many sellers still love their property to much, and I too, wonder why they are placing them on the market since they love them too dearly. Personally, I think many prices are way too high to sell today. Attractively priced properties are out there and some sell quickly, and others have not. After seeing the listings not sell for 6+ months, the sellers should reconsider their asking prices if they are truly wanting to sell.


Joe's coming around....

[HighBidder]

:idontno:

Me neither, kinda went off on a tangent....

Anyways, what I was trying to say is auctions seem to work at the extremes- strong buyers or strong sellers market.


Hi Jelly,

Auctions work in all economic climates but, as you indicated, are exemplified in the extremes.

[Smiling JOe]

Joe's coming around....I've been here the whole time. My thoughts on the subject have not changed, although my ears are always to the ground and my mind is open.;-)

[HighBidder]

Auctions seem to take on a flavor and bring results depending on the local market. I have worked with an outfit over the last 4 years that has done constant aucions in the Destin and Sandestin market and has sold properties seemingly at market value. I believe the sellers and buyers were savvy and got the deals done in a timely and efficient manner. A lot depends on the marketing beforehand and the database of buyers/investors the auction company has.

In a dire market the results are likely to be much different than a hot, or a normal market.


Kurt,

You betcha, but the numbers are still real.

[kurt]

Kurt,

You betcha, but the numbers are still real.

What numbers?

[HighBidder]

When properties at an auction have a "reserve" I dont think you get true buyers making bids. You get people who feel safe bidding on that 2M property for 1M . They will never hit the reserve, it is wishful thinking. Even though it would be a good deal those bidders think twice before bidding 1.7 or 1.8 million because they know they might hit the reserve and actually have to buy it. If I were really looking to purchase a 2M lot I would definitely take a shot at an auction and bid up to 80% or 85% of its value. (net of the buyers premium)

IMHO, an absolut auction, particularly if there are ready and able bidders present would definitely drive the price close to what its true markey value is, sometimes higher if a frenzy is started.


Amen & Shalom.

(It's late, I'm tired, and getting froggy, but that's okay. You guys have a good understanding od what's happening out there.

[HighBidder]

Strong buyers only if it is an absolute auction.


Joe,

Typically stronger when absolute, but properly motivated sellers is really what makes an auction.

[HighBidder]

So, were you able to provide the most significant benefit to the people trying to sell their property? Why have we not heard of any sales? Did anything sell? Have I answered my own questions?:idontno:



Hi Joe,

Though many bids were well, well above purchase price, none were accepted. We are still working to get a couple of the deals done.

IMO, the sellers still do not realize the severity of the market conditions in SoWal, or they do not NEED to sell.

I assure you that you'll see very motivated sellers for out next auction in your area.

[HighBidder]

What numbers?



The numbers acheived at auction. We brought the most money available under that set of terms & conditions.

[HighBidder]

Going to bed, Gang. I'll check back in over the weekend.

Thanks,

S....

[HighBidder]

BTW, I understand that no one ever wants to back up. The only people that really suffer in this situation are the individuals who purchased at the peak of the bubble. :bang:

Everyone else will either be required to hold, or to adjust their anticipated profit. Neither one of those choices is the end of the world.

S...


Been dying to use that "bang". That's hilarious!

[Smiling JOe]

The numbers acheived at auction. We brought the most money available under that set of terms & conditions.money not accepted is money not brought to the table. I think it is misleading to say that you brought the most money available, when in reality, you brought none.

[SHELLY]

Geez...Highbidder, you got through all those posts and no one cued the "Grim Reaper," and you even used the "B" word! :idontno:

I imagine you'll be humping butt once the condo auctions in Panama City Beach, Destin and other places start to heat up.

[Cork On the Ocean]

Hi Camp,


The auction process is an incredibly fair method of marketing, and is the best way to exchange assets for the highest possible dollar value under the current set of conditions, whatever those might be.

Hi high (love that :D )

I don't have any real problems with the auction process because as you say it's nothing new. I do have problems with the language that the company's website uses regarding exerting persistent psycholigical pressure or something like that. Also language about the frenzied environment creating an illusion (wrong word) of an impending sale. First, I'd have concerns about allegations of undue pressure and secondly I don't pressure any buyer into a sale because its just too important of a decision to make under any sort of pressure. That's my primary beef with the marketing.and/or process.

I understand that you disclosed the closing costs and "as is" nature before the auction but no mention was made of the potential that they'd need to close even if it doesn't appraise. With many of those buyers, you're acting as a transaction broker with buyers that are otherwise unrepresented I'd think there'd be some sort of requirement (ethical or otherwise) to advise them of that.

[Cork On the Ocean]

Hi Cork,

In most cases, the seller typically pays for the advertising budget in advance of the auction. This is the direct cost of advertising and marketing the sale. None of these proceeds are retained by our firm.

Thanks for clarifying that.

The values were set in at about 50-60% of current listing prices. These are not "bottom feeders".

I tend to disagree with that. If a seller of a listed property got an offer of 50-60% of asking, he'd probably decline to counter. That might occur on the courthouse steps but you're not selling these properties on the courthouse steps and most of them aren't true distress situations, just a change in marketing strategy as you said.


It is important to realize that asking prices do not establish market values, but merely reflect past market values. Current transactions represent current market values.

If you check back on my threads, you'll see that I consistently make this same point.

If no transactions are occuring, wouldn't it then be safe to assume that the market values are significantly lower than owners/sellers are willing to admit?

No, wouldn't agree with that necessarily especially when average sales prices are significantly elevated. I could go to South Beach and refuse to pay those prices but that's not gonna make them come down. The property owners in this area have a stronger ability to sustain and in many cases I think if buyers can't afford this market, they're gonna have to go someplace they can afford. Don't go to Destin expecting to get Chiefland prices. They're gone. You missed the boat. (not you personally)

What percentage of total properties are currently listed? SoWal has a serious Supply & Demand issue, hence the adjustment in property values that are currently being experienced.


I agree that there's a serious supply and demand issue but recent sales data that SJ posted show that not one type of property decreased in value in the last year. DSF's appreciated significantly and so did condos. Land to a much lesser degree (almost flat)

[Cork On the Ocean]

Knowing this, why did you waste your time and money knowing that the prices which were bid would not meet the reserve prices set by the sellers? That is not smart business.

What a great point Joe! It would seem that a market analysis would have been done and if they knew there was too wide of a difference between what sellers were willing to take and what buyers were willing to pay, why would they give hope to sellers or encourage them to pay for this auction. There are apparently more auctions scheduled. Is that gap going to get that much closer in the next month or so? :idontno:

We're in the wrong business. We pay all the expenses and if we sell it, many resent paying us a commission. If we don't sell it within 3 months, that same seller moves the listing to someone else as if they could do better. I'd rather let them lose the money and praise me for trying :lol: when I tell them that it wasn't my fault it didn't sell but the fact that they're property value has plummetted.:scratch:

Name one example please. What is the parcel id and what was the bid?:idontno: I don't know what was auctioned, but I believe you must have made a typo.

[Cork On the Ocean]

Franny,

You are correct. There is no more accurate barometer to establish market value than a properly advertised absolute auction. The market will protect itself, however many sellers don't have the stomach for it. No crime in that.

I hope to hear from you all as to how that auction goes.

When and where is it Franny? :popcorn:

[Cork On the Ocean]

Please let me say that I think the auction business is very legit and can serve a great purpose to many peoples needs. I do not question your abilities or professionalism as an auctioneer, highbidder. That is not my intention. My intention is to seek the truth behind the sales. I certainly appreciate your point of view, and to better understand anything, I think we should first question everything. ;-)

Ditto, High. I have to commend you on your professionalism in dealing with the pressure that we've been exerting on you. I appreciate the time you've spent and the control that you've exhibited in helping to help us understand the process. :clap_1:

[Cork On the Ocean]

Hi Joe,

Though many bids were well, well above purchase price, none were accepted. We are still working to get a couple of the deals done.

IMO, the sellers still do not realize the severity of the market conditions in SoWal, or they do not NEED to sell.

I assure you that you'll see very motivated sellers for out next auction in your area.

I would be interested in knowing how low these sellers are expected to go and the tone of your posts High, makes me think that pressure is now being exerted on them to take these really lowball offers. Regarding that beachfront lot, I got a buyer looking for a beachfront lot under $2 million about 4 weeks ago. I think that was his request but would have to check with realtor that I gave the lead to. If there are buyers out there looking for beachfront under $2 million, I'm gonna scream if that seller takes $1.25 :bang: :bang: :bang: because then this auction process is devaluing our properties. Tell me that's not the deal you're still working on High :banging:

[HighBidder]

I would be interested in knowing how low these sellers are expected to go and the tone of your posts High, makes me think that pressure is now being exerted on them to take these really lowball offers. Regarding that beachfront lot, I got a buyer looking for a beachfront lot under $2 million about 4 weeks ago. I think that was his request but would have to check with realtor that I gave the lead to. If there are buyers out there looking for beachfront under $2 million, I'm gonna scream if that seller takes $1.25 :bang: :bang: :bang: because then this auction process is devaluing our properties. Tell me that's not the deal you're still working on High :banging:


Good morning, Cork.

Rest easy. It's not. You can also rest easy on the pressure issue. It may be overstated somewhat, but I don't want to get into that now. I think anyone in attendance Saturday will vouch for us on the pressure issue, or the lack thereof.

Let's talk about "WHY" we believe much of the nation's real estate, especially residential, is about to experience a serious readjustment in value. It's really quite simple.


The US economy has experienced significant economic growth since 1982 thanks to Ronnie & Bill (Reagan & Gates). After the S&L/RTC fiasco in the late 80s most people invested heavily in the stock market.

"Put your money in business! Support your nation's economic growth!"

Thru the 90s we had solid growth in the stock market, moderated by several adjustments, both large & small, and capped by the dot.com bust. In spite of the adjustments most people improved their financial condition thru that time period. Investors started putting significant amounts of money into land and improved real estate.

"Buy Land! They're not making it anymore!"

Due to the availability of wealth generated by Ronnie & Bill, many people "invested" in vacation homes and recreational lands. This was a good thing at first, but hype and speculation set in following the inital phase of investing. The impending rapid and unsustainable growth was fueled by low interest rates, interest only loans, IRS incentives, and the hype of everyone even remotely related to the business of real estate marketing and mortgage/money marketing.

Our nation's media fueled the fire by reporting on the stability, growth, and profit potential in the real estate market. "Flippers" started buying and selling land (often without ever having closed) at prices supported primarily by the