Anyone Thinking of Buying Properties at Auction: Hold Your Fire

January 28th, 2008

WARNING: This is not a recommendation to buy, sell or hold any financial instrument.

I saw a post about a large auction of foreclosed properties coming up in California over on Global Economic Analysis. I agree with the opinion over there: hold off. We haven’t seen anything yet.

If you’re considering one of those properties, you can use RealtyTrac to see how many more properties in the area are in the earlier stages of default.

Via: Global Economic Analysis:

The only way some of those houses could have sold at the previous value is out and out fraud. Many of the opening bids are preposterous. Even still, there are going to be enormous losses if the homes go for the opening bid. Some won’t sell for half the opening bid. They will be back on the auction block again, hopefully with more realistic opening bids.

Posted in Economy | Top Of Page

One Response to “Anyone Thinking of Buying Properties at Auction: Hold Your Fire”

  1. quintanus says:
    January 29, 2008 at 5:05 am

    Some cities are surprising. I’d expect San Diego (9000 listings) to have more than Sacramento (12000) because they’ve been down for a while. Chandler(1600) and Gilbert(1800) by Phoenix, AZ(10000) (with over 100k pop.) have far fewer per capita than obscure California exurbs like Antioch, CA (2900), Brentwood (1200), Indio(1100), Tracy (2200). Stockton (7000). Reno only has 1900. California college town Davis by Sacramento has only 42

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