Auction Of Houses Gaining Popularity – Whether Foreclosed Or Not

July 28th, 2008 | Tags: Foreclosed Homes

Experts in the field opine that auction of houses are gaining in popularity – whether the houses are foreclosed or not. This is mainly because of the problem connected with selling fancy high priced properties.

Nowadays the word auction is usually connected with foreclosures but that is not always the case. Auctions are often the alternative to selling through a typical realtor. Going via auctions are cheaper and makes way for the seller to lower the price. Ultimately the house moves.

On July 26th there will be the auction of house situated in one of the exclusive Bay Colony localities belonging to Diane King. She complains of having difficulty in selling off the house on Bay Colony Drive. She says, “It has been frustrating”. Since a year she has been trying dispose of it and started with the asking price of $945 thousand. Gradually she lowered it down to $920 thousand and then to $800 without any satisfactory response. The house is a perfect dream with a model kitchen having stainless steel shining everywhere. The counters are granite and the floors of hardwood. But despite this showpiece and her overtures, the house is left like a jilted bride at the altar. Foreclosure auctions made her turn to this unconventional route in this high-dollar neighbourhood.

Auctioneer Randy Feil is optimistic that auction means action and the house will ultimately change hands. A signboard has been put up announcing the auction sale for 26th July. The auctioneer will get 3% of the selling price by the person who buys the unit. There are other incidental costs, which King will have to bear but this, will be far below the amount she would have had to pay to the realtor had she engaged one.

Auctions however do not always work. The court auctions of foreclosed houses invariably turn out to be disappointments and the banks have to repossess the houses much to their dislike. They have to then renovate the units, spruce it up and again try to sell through private auction. To make auctions popular bus tours are rumbling through localities. Prospective buyers are even being asked to stay overnight in the house of their choice to get the full feel of the place. All this points to the fact that nothing seems to be working when it comes to selling houses in the present mood of the market.