Has anyone ever attended an absolute real estate auction? I went to one this afternoon. It was quite an experience.
An agent that sits next to me in the office said that she would be going to this real estate auction in the afternoon and invited me to join her. So we hopped in her SUV and away we went. The auction was being held in Venice, FL by VanDeRee Auctions . It was a 3 bedroom plus a den or 4th bedroom/ 2 bath/ 2 car garage, tile throughout, granite countertops, wood cabinets, 55+ community, 2278 sq. ft. under air, built in 2004 and was in a planned community.
We pulled up to the house and the whole street was lined with cars on both sides. It looked like a pretty good turn out. So Connie (the agent from my office) and I went and started looking around. The house looked as though no one had ever lived there. It was in great condition. As we wondered from room to room she asked me what I would list it for if it were my listing. I told her $399,900. The funny thing was that the previous listing agent showed up at the auction and we started talking to him, and that is exactly what he had had it listed for.
Inside there was probably 50+ people. We saw several agents, a local news station, a couple newspapers and a lot of bystanders. Once 12:30 rolled around Mr. Van De Ree, the auctioneer, got on the mic and introduced himself and went through all of the terms of the auction and the amenities of the house. He said that there would be a 10% buyer's premium, $15,000 deposit on auction day and a second deposit due in 7 days for a total of 10% down. The buyer would be paying all closings costs and closing would occur in 30 days.
When coming in the door people were registering for the opening bid. So when Neil Van De Ree started the auction out he said I have one bid of $100,000 and a three way tie for $200,000. So he started the bidding at $200,000. Out of the 50+ people in attendance only two people in the audience and one person calling in by phone were bidding. The bidding quickly got up to $235,000 and then no one wanted to budge. Mr. Van De Ree went over what a great deal the property was and went over the amenities again and then spoke with each of the bidders. Finally, one of the bidders went up to $240,000. Mr. Van De Ree lifted his gavel and said, "Going once for $240,00, going twice, and one of the bidders chimed in at $250,000. Again Mr. Van De Ree lifted his gavel and chanted the $250,000 price. The phone bidder increased their bid to $255,00. Going once for $255,00 Mr. Van De Ree said, going twice, sold for $255,000 to bidder number 16, our phone bidder.
What a deal! This house that was listed a few weeks ago for $399,900 just sold for $250,000 plus a 10% buyers premium and closing costs. My best estimate is when all said and done they would have bought it for around $300,000.
I was going to look into the auction process for my listings and now I think may start bringing my buyers to the auctions instead. This person sure got a heck of a deal!
So if you've never been to a real estate auction go check one out!