June 26 — It’s every would-be real estate investors dream. A perfect active adult community property comes on the auction block in a distressed market – and you snap it up for hundreds of thousands of dollars less than its market value. As real estate auctions make a comeback these days more and more people – including baby boomers looking for a retirement condo or house in an over 55 community – are catching the auction fever.
In Riverside California this past May over 1200 would-be investors had their chances when 100 properties in that region were auctioned off. So how many realized their dream? According to a recent New York Times article, not many people came away with significant savings.
Why? The auctioneers, Real Estate Disposition Corporation, did a superb job of revving up buyer excitement, too many buyers were a bit too eager to bid, and in the end the banks selling the properties might have won the day. As one attendee told the Times, “We learned a lot today. You can probably buy them cheaper in the market than here.
Looking ahead to the future, chances are there will be many more chances to bid on a foreclosed property in the near future. In 7 southern counties of California for example, there were 6007 foreclosures in the 1st Quarter of 2007 – compared to 721 in the corresponding 2006 quarter. As the supply of foreclosed homes coming on the market continues to increase the corresponding opportunity to purchase your dream retirement community at a song increases. Perhaps you will have the discipline and the luck to make your retirement dream come true.