Auction for LV homes draws 2,500 bidders; 87 homes sold - Business

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Aug. 08, 2007
Copyright © Las Vegas Review-Journal

Auction for LV homes draws 2,500 bidders; 87 homes sold

By HUBBLE SMITH
REVIEW-JOURNAL

A public auction of 90 bank-owned homes in Las Vegas attracted 2,500 people Sunday, one of the best crowds for any home auction in the country, Dave Webb of Dallas-based Hudson & Marshall said.

Bidders purchased 87 of the homes at an average of 80 percent to 85 percent of the list price, Webb said. Prices range from $76,000 to $715,000.

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The homes are under contract for sale, but still must be approved by the bank.

Webb said auctions are becoming more prevalent in Las Vegas and the rest of the nation. Last year, he had only a dozen homes to auction in Las Vegas.

Next week, he's got 300 homes to auction in Indiana and Illinois, including 200 in Chicago, and after that he goes to the Southeast for 600 homes on the block in Georgia, Alabama and Tennessee. In September, he returns to Detroit, where foreclosed homes sold for as little as $30,000 earlier this year.

Webb said banks are able to dispose of hundreds of real estate-owned homes at good prices for buyers, which benefits both parties.

"The lenders we work with are familiar with our program. They know we don't give stuff away," he said. "The bank still has to approve the bids, but they know what we're getting is really what it's worth on auction day."

Andrew Pugh of SellFastLV.com said he attended the auction and was struck that only a few of the homes were offered in an "absolute auction," which means the bank is under no obligation to accept the price from the high bidder.

"All you've really accomplished by being the high bidder is the right to have the bank consider your offer," Pugh said. "So you can go research these homes ahead of time, attend the auction and be the high bidder and the bank can still say, 'No thanks.' Most likely they would counteroffer, but I don't see how you're any better off than just making an offer through an agent."

Webb said Hudson & Marshall will probably be returning to Las Vegas within 90 days and he expects 90 to 100 more homes to be offered at auction.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. Dave wrote on October 28, 2007 08:52 AM: Hello,Do you have any specific dates for auctions for the las vegas and surrounding areas, if you don"t know is there any body I can contact.Thanks Dave The Answer wrote on August 14, 2007 03:12 PM: Why USE an agent? They're worthless, they don't deserve the commission. Why even publish that crap from SellFastLV.com? Website even SOUNDS like a gimmick. GotRocks wrote on August 09, 2007 07:42 AM: Anyone who bids over 50% of asking price has been DUPED, as it's really unlikely that they do any better in this sham auction, then simply through a broker. With the auction, you have a buyer's fee (5% or more), you have to take the uninspected property as-is, and, of course, you get to hold the property as the market continues to crash. richard Allen wrote on August 08, 2007 07:48 PM: Come on people it's a SCAM, plain as day. Auction houses have shill bidders to goose up the price and if the shill bidder wins the deal goes back to the floor to be resold later...at a higher price. Why do you think they hold these on WEEKENDS??? DUH, to get to marks to show up. Notice how they always have tons of free parking too? The real deals happen at Tuesday at 11am or Friday at 3pm on a holiday weekend, where only the pros show up. jayzindabooty wrote on August 08, 2007 10:27 AM: off the hook! ima gets me 2 maybe 3 housses , hos bettrippin on were they be sleepin, crackers are dope as stupidthey loosin they hoemes cuz they dont haves them cash mony fools! annoyed wrote on August 08, 2007 09:59 AM: It's called get a clue you sellers. You're asking too much and the dream is over. There are buyers out there-they just don't want to pay what you're asking. But wait, you can't drop your prices because you're already upside down and the banks would have to approve a short sale. hint hint. Mr. Mo NE Bags wrote on August 08, 2007 09:09 AM: Mr. Dumass - The money is coming from the banks! Brent wrote on August 08, 2007 05:34 AM: WOW! Looks like there are lots of buyers out there to me.One has to wonder where the money is coming from though. brent wrote on August 08, 2007 05:24 AM: WOW! Looks like there are lots of buyers out there to me!!!! One would have to wonder where the money is coming from though.