Real Estate Investors! Banks now trying to use auction process to increase market value of their REO's!

For some reason, Banks are now using the Internet auction process, in an attempt to sell their REO's.

The bad news for the banks is that they will be dealing with the same stubborn buyers who feel that the current asking prices are too high.  And, that bringing the property to auction will NOT increase the value of their REO holdings.

However, whether the property "Sells" at auction or not, the stronger banks are going to hang in there tough and continue to focus more on the maximum value they can get for their properties through this process.

Recently, one REO property I had been watching, did sell through the auction process for slightly more than what it would have sold for through the normal real estate sales process.

What this tells me is that this property's current value -- for example -- is roughly $4 million.  Bringing the property to auction, still only made the property worth the +/- $4 Million.  (Just so you know, there were no comparable sales or any other evidence that would have made this property, overnight, increase in value at all.)

So, what can I do?  The only thing I can: which is to tell the Listing Agent or Owner, “I can get you an offer for "X" amount for your property.”  The Agent or Owner usually replies that they can find a buyer for their price.  Unfortunately, my only reply is: “Good Luck!”

  

(To give you some background information, several years ago, I sold a client’s last owned shopping center in which I was able to get him the highest price per square foot for a shopping center in Las Vegas at the time.  But, since that was a few years ago, he’s (conveniently) forgotten that fact.)

So, a fellow property owner, who knows little or nothing about the declining market area they are in, “thinks” he can get someone from out of the US to badly overpay for my client’s property!

The unfortunate part of this is that this is starting to happen in reality.  Last year, a Chinese investment group overpaid for a Walgreen's located on the "Strip."  Now, there are better valued properties around the entire Las Vegas valley that are worth looking at.  But, as with most investors outside of Las Vegas, they only think of Las Vegas as a Resort lined “Strip” of land.

But, if you investors would open your minds and wallets, you will find -- to your surprise -- good deals still here but outside of the “Strip.”  And, the investor that decides to believe me will be one happy camper down the road.

For more Information about Las Vegas Commercial Investment Real Estate Property, contact David Howes at: david@davidhowes.net OR 702-501-9388!