What do you get when you mix a passion for homeownership and property-starved bargain hunters with a rush of adrenaline and the excitement and frenzy of a live sale? Real estate auctions.
During the mid-1980s, when the Orange County real estate market was generating land-office business, it was not uncommon to see long lines of eager buyers waiting for a chance to participate in new-home lotteries. But with the recent downturn in the market, developers had to get creative. Enter real estate auctions. They are to the '90s what lotteries were to the '80s.
Over the past few years, real estate auctions have become an ingenious way to please both buyers and sellers.
"It's a win-win situation," said Susan Stevens, president of Auction Marketing Services in Irvine. "It gives the seller a known sale date. Instead of having to carry interest on construction loans for an unspecified time, he sells all of his property in one day and can afford to pass that savings on to buyers. As for the buyers, it gives them the opportunity to set the value of a property in an open market instead of having to deal with a 'suggested retail price,' if you will."
Here's a list of hints, procedures and what-to-expects for buyers who may want to try an auction.
BEFORE THE AUCTION
Finding out about real estate auctions is fairly straightforward: watch for ads in local newspapers, though occasionally auction companies will also run radio or television spots. Also, companies generally place signs in and near the tract to be auctioned. * Obtain a catalogue on the property by calling the appropriate auction hot line number (listed below) or dropping by the auction site. * Thoroughly inspect the property and review all documentation; do not be afraid to ask questions. * You must be registered in order to bid on a property. Complete the bidder registration form in the catalogue and mail it back before the deadline. The type of information that may be requested on a registration form includes Social Security number, driver's license, banking information and your approval to run a credit check. * In a few days, you will receive a bidder acceptance letter.
