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Real Estate Auction Update

Yesterday I wrote about the auction I went to with an associate in the office.

I have an interesting update to that story.  I was getting ready to go home yesterday and I made my last few calls before wrapping up the day. One call was to an agent in Sarasota (a neighboring town to the north) she told me that she was thinking about putting a few properties up for auction and wanted my opinion on that. I told her about my experience earlier today. Then I hung up the phone with her and headed home.

Later on that evening I got a call from the same agent in Sarasota that I had spoken with earlier. She said, "you're not going to believe this but I just got a call from a friend of mine (another agent) and she was talking to someone this afternoon that bought that house that you went to at the auction." I figured the costs would be around $300,000 for the house but they actually got it for $280,000. The person that bought it was calling around trying to flip it for $300,000.

I thought it was kind of interesting how I happened to get a phone call about an auction that I attended earlier in the day. What a small world!

So now I'm wondering what happens if they can't flip it? Will the house go back to the original owner? They did take a back up bidder so I suppose it would go to them. Hopefully, they'll find someone to buy it and everything will work out fine. They did get it for about $120,000 under market.

Comment balloon 3 commentsShannon Moore • August 16 2006 07:28AM

Comments

That is a good story.  I'll have to follow it up and read your post about the auctions it sounds interesting.  I have never been to one but hear they are great if you have cash on hand.
Posted by Jarrett Kozelisky (Keller Williams North Seattle) about 11 years ago
It's a small world!  I imagine he's like any other flipper...you contract to buy, and if you can't resell it before closing, then you own it and try to sell it afterwards - or lose a significant deposit.
Posted by Sharon Simms, St. Petersburg FL - CRS CIPS CLHMS RSPS (Coastal Properties Group International - Christie's International) about 11 years ago

Roxanne:

 Did the buyer "flip" the house?

 If not the auction actually established true market value for the property.

 

Posted by Billy Burke, CAI - AARE (The Auctionarium) over 10 years ago

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