Different strategies for Bidding at live and online foreclosure and short sale real estate auctions
1: Live Las Vegas real estate auctions:
There are two sources of live Las Vegas real estate auctions. Las Vegas Trustee sale auction, where the act of foreclosure takes place, and Auction dot com which does some trustee sale auctions in addition to auctioning off bank owned and short sale homes and condos.
Las Vegas foreclosure auctions with hundreds of REO listings and eager bidders bidding against each other are a thing of the past. They have become more civil as well. The auctioneers no longer try to confuse bidders so they would bid against themselves to run up the bid price. If the high bidder does not meet the minimum reserve price, the auctioneer just comes out and says what the minimum reserve is and if no bidder meets it, just goes to the next listing.
Bidders are expected to do their own research about HOA and other liens and clouds on the title. The Trustee sale auction doesn’t provide any information other than the property address, APN number and foreclosing loan amount.
Information provided by Auction dot com is offered as a sample, is incomplete and often wrong. One of the listings that we purchased showed no home owner association, while there was a $5400 lien on the property by the HOA which of course we did know about.
Buyers can find vendors that provide them with necessary lien information and even to bid on their behalf. But they do NOT have the expertise to pick the right home, condo, high-rise condominium which we do.
The number of listings in these auctions is low and competition for lower priced properties in fierce, at times approaching MLS retail prices. The majority of auction listings either get canceled or postponed, so patience is necessary. The record for postponement that we have seen belongs to a house that was postponed 34 times before it finally got auctioned off.
Online Las Vegas real estate auctions:
Auction dot com, Hubzu, Home Search and HUD homes auction their properties online and they list both bank owned homes and short sales. For the first two, the bidders need to do their own research as explained above. Again, these have minimum reserves which have to be met, so the high bidder doesn’t necessarily win.
In the case of not meeting the reserve, all bidders will be given a chance to accept the reserve price. If no one does it will be listed in the auction again. One house was auctioned off for at least 14 months in Hubzu before we lost track of it.
On one home we were the high bidder twice at about $140,000. However, the reserve price was $160,000 and someone paid it the second time and took the house!!
HUD Homes online auctions:
Department of Housing and Urban Development (HUD) sells FHA foreclosures through online Las Vegas foreclosure auctions.
HUD Homes are different and bidders have access to the property, inspection report and they price their foreclosures based on FHA appraisal, so there are no unknowns, this allows for better risk management. However, HUD homes are restricted to owner occupiers for the first 30 days and most listings are gone by the time that investors can bid on them.
We are one of the few real estate agents (Realtors) that have purchased homes for ourselves from both types of auctions, totally rebuilt homes and were involved in a zone change process.
If you are planning to buy from these Las Vegas foreclosure or short sale auctions, call us and we will get you started on the correct path to success in your deal.