I attended the NC Home auction in Raleigh Convention Center and most properties I am interested were in the Raleigh and Durham areas. The REDU was orginally planned to auction 155+ properties but it ended up only have 60+ properties were auctioned. Also, most properties were located 1 to 2 hours away which I normally recommended to invest only in the area you familiar to reduce all the potential risks.
If you are new to auction, it is totally different from foreclosure or short sale cause you don't have that much time to think through. Besides, you also require to pay 5% buyer premium on top of the auctioned price. There were two properties I am interested actually sold at 15-18% discount than its original asking price after adding the buyer premium. I think it is comparable to foreclosure but not necessarily better than other distressed properties. The seller can set an undisclosed reserved price and the auctioner will bid up the price cause it did not meet the seller's reserved price. To me, auction is only worthy when there are not many bidders but the auction in Raleigh Convention Center was kind of competitive cause the bidders are bidding in the Ballroom, Charlotte and online bidding.
One thing I observed is that I found out there are a lot more investors this time than the one I attended couple months ago and honestly I can tell more buyers and investors are ready to get some good deals and will expect a lot more competition in our market.
Please feel free if you interested in looking at some foreclosure, auction, short sale or distressed properties.
CARY RALEIGH REALTY
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