Foreclose Alert MLS Listings

Foreclosures and short sales have been the real estate buzz of the week for the last several months – I’d think it’s about time we finally heard something new. Come another new trend indicative of the nation’s economy that’s taken on a new light in recent weeks – I introduce to you real estate auctions as the new black.

Steadily gaining notoriety and attracting the attention of the ever-growing population of home buyers looking for the next best real estate deal, fanfare regarding real estate auctions have been on the tips of everyone’s tongues over the last few weeks with no indication the trend is backing down.

With conglomerate bigwigs such as LA Times Media having just launched their own brand of real estate auctions, this is yet another example of a nation taking notice of the opportunities opening up in distressed real estate, of which foreclosures and short sale properties represent just a small percentage of the overall pie.

Just like foreclosures and short sales, however, a majority of the real estate auction buyer’s market is still unclear about the facts and fanfare versus mystique surrounding the allure of obtaining a real estate bargain at the local real estate auction. The auction part is exactly how one would think when envisioning an auction – there must be a pool of buyers, a pool of inventory for sale (possibly prime real estate for better-than-you-can-possibly-imagine prices, per this example), and an auctioneer. The winner of real estate auctions are also just like one would imagine – the highest bidder not only takes the cake but eats it, too. Note however, there are key differences in real estate auctions versus other types of auctions.

Unlike bidding for a Qing Dynasty vase from 1645 from the local auction house, there are numerous details surrounding a potential property being auctioned that are hidden to bidders that must be unearthed - the circumstances surrounding a property’s foreclosure, local government rules and procedures pertaining to how real estate auctions are regarded in that particular area, and the conditions surrounding the property in question are a few good areas to start.

The appeal of obtaining valuable investments in real estate at way below market prices brings in slews of potential buyers at such auctions for good reason, but auctions have gained a reputation for caveat emptor for even better reasons. Buyers and bidders alike should not be discouraged, however – there are plenty of real estate deals to be had and real estate bargains to be scoured at such auctions, but it’ll take at least a bit of homework for those parties interested.

Carnegie couldn’t have been any closer to the truth when he famously claimed “Anything in life worth having is worth working for.”

So for all you real estate bargain hunters out there, best of luck to you – caveat emptor.