Springfield Area RE auctions (home builders, inspectors, prices)

[redneck central]

I went to a land auction, about 6 mi east of Rogersville, about 3 miles south of Hwy 60. It was a cow pasture in the past. One small pond with green water, land was very nice. Mostly open, some trees scattered in different areas. No housing restrictions, you could put up one house, or a few. It sold for $6100 an acre, one buyer.

[redneck central]

This home was about a mile east of hwy 65, north of Sunshine rd.
20 year old brick home in a nice subdivision. Subdivision had a community pool, 2 tennis courts. House was on a half acre lot.
Ranch home, with a partially completed basement. Probably 2600 Sq ft on each level. 2 car garage. Home was immaculate. Wood trim every where. Sunken living room with fireplace, island kitchen, 4 bedrooms, 3 bathrooms.
Sold for $225,000.
2 blocks away there was a ranch house listed for sale, 3400 sq ft, small lot, they are trying to get 190k. These auctions really make some of these listed homes appear way overpriced.

[skeating]

So far what I am reading regarding auctions are older houses. Houses built years ago in Springfield/Branson and outlying areas definitely had no building codes being enforced (not like in the bigger cities elsewhere)that would definitely effect a person purchasing them whether being auctioned or not.

Since my husband and I were in the construction industry we have seen alot of change in the past five years as far as building restrictions. Even in the new housing market all individuals should check out the builder and their house that is being sold. When foundations or crawlspaces and floorings go down you don't know what is underground. When walls are covered with drywall you don't know the condition of the construction. Then too consider insulation in these houses. Today "energy efficiency" is all important especially if you heat with propane or gas. Then the caution is electrical work and plumbing you can't see.

Check and see if your builders are "certified" they have to take courses and continuing education classes for these certifications. The nationally certified builder is building under a very stringent code and not just a local code. All these matters should be considered by all when buying, EVEN IN AN AUCTION..... WHAT IS LURKING BEHIND THE WALLS AND UNDER THE FLOORS..... THAT IS THE QUESTION....

In the Ozarks anyone can put on a tool belt and claim they can build.

This is NOT meant to be negative, but is a word of caution!! BE WARY with your real estate purchase. We can say this and this is not an ad due to husbands injuries we no longer work in construction... THESE STATEMENTS ARE MEANT FOR THE CONSUMER WANTING TO KNOW MORE IN THE BUILDING INDUSTRY.

THIS MAY BE THE REASON YOU ARE SEEING SOME OF THESE PROPERTIES SELLING ON THE AUCTION BLOCK SO CHEAP.. GOOD QUALITY NEWER CONSTRUCTION WON'T GO FOR CHEAP...

[redneck central]

The houses I have seen auctioned off , most are at reasonable prices..The reason? Supply & demand, in my opinion. Lots of homes for sale. Any house you plan on purchasing, whether via auction , or conventional purchase, you would be wise to pay to have an inspector check it out first. The 4 brand new homes in Ozark that were auctioned in Sept, were only drawing bids of $41-56 per square foot( 4000+ sq ft. ) The quality was there, the buyers were not. This credit crunch that is unraveling will turn the real estate market upside down. Next year nationwide analysts are predicting 2 million foreclosures. That will balloon the supply. Those sitting on cash now will be in an excellent position to buy on the cheap. Interesting and challenging times we are in... compliments of alan greenspan.

[skeating]

I understand what you are saying redneck. The auctioning prices are for the typical 2x4 construction spec homes. These are good houses but they are speculative houses. The builders will cut every corner possible to make the extra money.

We have been talking to builders all over Missouri and they need to sell, so sometimes they auction, it is better than paying $1500. - $2000. per mo. for their speculation.

Things will turn around, right now the news media is frightening people and causing a frenzy. The housing is like the stock market, people need to slow down and stop panicking.

The buyers that are banking on making a killing from someones tragedy, should remember the old saying "what goes around comes around". Buyers should beware of greed. It is one thing to make a good deal and another to become animalistic in our behavior with one another even in economic matters.

These are the times we are living in. We all need to step up to the plate and remember to help one another, not get while the getting is good.

[redneck central]

Thanks for your reply SK. Most of the house auctions I attend are or were lived in by folks just like you and me. None of those were spec homes. The 4 new houses in Ozark were brand new, that a builder sold to a speculator. They were nice, granite in the kitchen ,etc.
Whether its in the housing market , or the stock market, greed is a killer, you are right there.
The mortgage bankers got greedy, by offering all kinds of risky mortgages.
Buyers needed no money down, they did not even have to document their income , they encouraged folks to sign up for adjustable rate mortgages, when the interest rates were at 40 year lows. Others got suckered into low teaser rate mortgages for a few months, then they get stuck with high monthly payments for the rest of the loan. The brokers knew what was in those contracts, sadly the buyers did not read the fine print. Is that a sick case of greed or what?
The brokers then sold the contracts to the bankers in NY, they kick back 3% to the loan originators, then securitze the mortgage packages , and sell shares to the baby boomers mutual funds, money market funds , and pension funds.
What you are hearing in the newspapers now about the bank troubles, that is mostly about loan packages they have in the pipeline, that they have not been able to sell.
Soon you will be hearing about all the baby boomers weeping and wailing because their pensions will be a fraction of what they thought they had coming, because the investment vehicles they bought contained this toxic mortgage stuff. This is what depressions are made of folks. This greed will hurt alot of innocent folks.
Then to a lesser extent , we had greedy realtors pushing new buyers into these high risk loans by teaming up with greedy shady mortgage brokers.
Then as you mentioned some greedy contractors putting up junky houses, cutting corners,etc. ( Not all realtors or contractors of course)
All for greed. I would not go so far as to call the above folks animalistic , .
But those folks who have been burned or will be burned by the above criminals, would probably have worse terminology to use.
For the next few years, the buyers that step in , and purchase distressed properties will be a Godsend to many. They are the scavengers that are cleaning up the mess, thanks to the many criminals that contributed to this disaster in the first place.
It will not be pretty, but our lesson in all of this is, read the fine print, before you sign on the dotted line. If you dont understand it, have a lawyer interpret it for you. The trust has been broken, it will take a long time to fix. Have a great day.

[erdnuss]

Where do you guys find out about when and where the auctions will take place? I live in Springfield and I love auctions but it's been so long since I've been to one!
Any of you guys know where to find repo homes?

[redneck central]

check the classifieds towards the end of the week in the news leader, or newspapers in the areas where the auctions will be. Check with a realtor , some advertise they have repo listings, or call the bank direct. Realtytrac/com also has repo listings, but they charge for the info.

[Lake Junkie]

Originally Posted by redneck central

These auctions really make some of these listed homes appear way overpriced.

My experience has been that people who hire an auction company are desperate (health reasons or ???) and sometimes willing to sell below market value. If you have the time and are willing to attend these auctions, having done your due diligence in regards to the values of property in the area, you MAY get a "deal". Also, the auction companies have a great sales pitch. Been there.

Originally Posted by redneck central

Realtytrac/com also has repo listings, but they charge for the info.

Realtytrac.com charges for info that is free on other websites. FYI.

Better yet is learning how to buy on the courthouse steps.

But then "repos" are another subject.

[8 SNAKE]

Originally Posted by Lake Junkie

My experience has been that people who hire an auction company are desperate (health reasons or ???) and sometimes willing to sell below market value. If you have the time and are willing to attend these auctions, having done your due diligence in regards to the values of property in the area, you MAY get a "deal". Also, the auction companies have a great sales pitch. Been there.

I agree with you. Comparing auctions to MLS listings is like comparing apples to oranges. While both involve the sale of real estate, the circumstances behind the sales are often vastly different.