I made some new friends this evening, a really nice couple from San Ramon who were referred by a colleague. This couple isn’t the typical real estate client, at least not typical to me. They’re introducing me to the emerging world of real estate auctions.

We’re all aware of the real estate markets in California that are over-saturated with inventory, and we’ve heard plenty about the sub-prime mortgage meltdown that created this situation. Now comes the product, or the result of those markets: the liquidation of that inventory through public auctions.

Good or bad, these real estate auctions are going to be around for a while. Some industry folks I know have warned against the emotion and excitement that’s created by the auction process, suggesting that the event can drive prices up to and even beyond market value. Others, like my new friends, have had experience at these auctions and are certain that there are deals to be had.

The real estate auction we’re headed to on Sunday is being conducted by Hudson and Marshall and looks to feature over two hundred homes in the greater Sacramento area. My friends have picked a few houses that they like and they’ve scouted them out. They’ve done some research to determine what they think they’re worth and what they’re willing to pay. They’re looking at purchasing up to three homes - assuming they can secure the bargain prices that they’re hoping for.

So we’ll head up there on Sunday morning to drive by some more houses, and hopefully get inside to view some of the properties that we’re serious about. And then we’ll be at the Raddison by one o’clock to check-in and get our seats. What happens after that, I can’t be sure. But I can tell you this - it won’t be the last real estate auction in Northern California.

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This entry was posted on Thursday, November 15th, 2007 at 6:09 am and is filed under Investing, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.