Sitting on the floor, watching the world get sold

January 23, 2010

At a rate of about one property every 2.5 minutes, bank owned properties are going, going, gone…the tuxedo clad, high energy, “auction assistants” are coaxing bids out of a poker faced crowd.

I am indeed sitting on the floor because it is a full house here at the Doubletree Hotel “grand” ballroom off Arden way in Sacramento at the REDC auction you can find out more about at Most properties seem to be selling for between 3 and 4 times the opening bid, which is still a good deal if you believe the “previous values” listed on the program.

In my market, very, very few properties have gone to this type of auction. If, however, you are interested in Sacrameto real estate, there’s plenty here to choose from. There’s even a slightly tempting 19 acre parcel in Oak Run where my good friends Tom and Wendy live.

About 20% of properties for which the gavel comes down are being reauctioned a few minutes later for reasons of the buyers failure to qualify or prove funds to close. This qualification takes place at a bank of laptops at the far end of the ballroom. A number of the properties are proclaimed “sold, pending seller approval.”. I’ve been told this means that the bank which owns the property has 14 days in which to approve or reject the deal as the reserve was not met and that about 80% of these actually proceed to closing.

My client is hoping to buy a bank owned property in Tuolomne county that he already tried to buy twice through a normal mls sale. Both times the bank rejected the deal. We are going to be up toward the very end of the auction-only about 25 more properties to go. Wish us luck!!

(Oak Run parcel just sold for 17,500 for 19.8 acres.)