Huge Auction Worries Realtors

[Terrel L. Shields]

http://www.blockauction.com/

Arvest bank is dumping over 100 properties in NW Arkansas. Some absolute auctions. They went on line bids until Th. night, and will sell Saturday with the online bid being the starting bid. Some Realtors are bravely predicting that Arvest will not sell a lot of them in fear of tanking the market. For instance, they have a subdivision of 49 lots which has a bid of $8000 or so....that's for ALL 49 lots.

I got a feeling that Arvest will dump most of them regardless the price. And then the market will have to gulp....It has the potential to shift our market overnight and that means DOWN. Realtors are hoping they get some sold high and withdraw all that don't bring substantial amounts.

As usual the local Realtors are claiming things are going to be great just ahead...

 

[Offshore]

http://www.blockauction.com/
For instance, they have a subdivision of 49 lots which has a bid of $8000 or so....that's for ALL 49 lots.

Is that correct, as in $163 and some change per lot? They could do better putting them on Ebay.

 

[Mountain Man]

No kidding, give me a LINK!!!! You've gots the courthouse hound's attention.

 

[Restrain]

We had a big auction down here, all absolute sales. Prices received weren't great, that's for sure. I figure that if Arvest is putting them up for auction, then they're serious about moving the properties instead of holding for the best price. Look for some bargains, some bidders overpaying, as usual.

 

[Terrel L. Shields]

another recent auction had the neighbor buying it for more than the owner had offered it to him....he was playing "chicken" with the guy for buying it.

 

[Rice Brewer]

Only FIVE properties will actually be sold during the auction on Saturday. Arvest will review the rest of the bids and decide whether or not to accept them in the coming days.

Oh, and the total # of properties being offered is 170.

 

[Ray Miller]

The auction market is very soft in our area and from my associates that have property across the country it is very soft for auction sales now.

I know of units that were selling for $450K to $550K are selling for $90K to $110K in the past two weeks, some not even getting a bid. We have houses where the starting bid is $1000 and not even getting bids and they are not in bad shape at all. I have had two auctions in the past month that we didn't even have a bidder show up on site.

Then too day I get notice of another larger resort that is filing bankrupcy, there sale have come to a complete halt and many of those that were sold are headed to foreclosure. Looks to be maybe 50 units on the auction market in the near future.

I have two resort developments that we are dealing on now for auction properties one will have 90 improved lots, one $1.3M single family, one $650K condo unit that all will be auction off in a multi-par auction some time in late September or early Oct. the other one is a resort subdivision with 12 homes that have never been sold or lived in and 34 additional improved lots some time in early Oct.

I am have now built in a fee that if the these propertied don't sell at auction I still get paid for time and services to bring them to the auction market.

Following the Auctioneer Forum it appears many investors and banks just want to unload the property. Had an REO assigment, before we could get to it for trash out, mowing and lock out, the bank deciced to unload it for $5000 and that was in my back yard with in 7 miles of me. I am sure the buyer can clean it up for around $10,000 and sell it for around $30,000 with in a few weeks. The bank just did not want to deal with it. Seems like this is happening a lot now.

 

[Terrel L. Shields]

Rice - my ex-banker source says that all that get 2/3rd of the appraisal will go and some land tracts or lots may be let at even lower prices. He was guessing to a point, but read that between the lines from someone else.

Many farm properties are really deteriorating, maintaining them is high cost, & another bank prez told my sidekick "it's gonna be worse next year."

One of our local banks has a hand who checks the repos and acts as courier. He caught a man & woman stealing poultry equipment out of a REO in broad daylight a couple weeks ago. This after one of the houses had been stripped of its copper wire by thieves before the grower ever left the farm. The rural REO's are a disaster because of the vandalism. My REO of the day below...former county quorum court member....
You are looking down the driveway. The double wide is to the left. The weeds were taller than my car.

 

[Tim The Enchanter]

Wow. Cash is King as they say, more now than ever.

Looked at an REO house today. Actually looked pretty clean. Orignal 50's cabinets, tile counters and wainscot, newer appliances, refinished original hardwood floors. HVAC. Newer pool. Move right in and only 2 broken single pane windows to fix, and fill the yard waste bin a couple times.

Sold 11/05 for $610, now pending at $330. Have to check on when the pool was built, think it was the last owners did it. Probably got a third mortgage for it. Wait, maybe I should be posting on Dr Housing Bubble.

 

[Terrel L. Shields]

The Auction drew 600 in attendance. they were expecting 200. The auctioneer predicted between 25-50% of bids would be accepted. I am anticipating more than that. We will see as Arvest wades thru the bids and sees what is what. As far as I can tell nary a property that i have appraised was in the sale and it appears most were from Arvest Bank as opposed to Arvest Mortgage but I couldn't tell exactly. Realtors were in the crowd and some were bidding. Several properties drew considerable bidding and are very likely to close. The Auctioneers were Paul Colvin, Dwayne Craig (who auctioned my uncle's place last month), and Larry Barnes. All are good auctioneers and experienced in RE auctions. Craig auctions internationally with machinery auctions in the Phillipines and Ireland under his belt as well as a former auto auctioneer at the Jacksonville, AR car auction, largest in the state. (he says buy the Sururbans and Expeditions - they aren't selling worth a hoot.)

http://www.nwaonline.net/articles/2008/08/02/news/080308rzauction.txt