Hi All,
I do auctions in Florida. A while back I got a call from a Realtor who had a property she couldn't sell and it turned out to be her own investment property. She said the mortgage payments were killing her. She was working on trying to sell her property for over a year. I explain the types of auctions available and she said because she had a mortgage she could only do a reserve auction. I explained to her that I only did reserve auctions if the price was right or else we would both be wasting our time and money. The next day I went to see the property. This was at the time when the market had already dropped by about 20-30%. She had paid over 320K for it and want to sell it for 275K (The reserve amount). After doing my review of the property and looking at comps I told her the I could probably get 235K. She pleaded for me to help her (crying) and said she had a mortgage of 230K, but needed 275K. Against my better judgment I said yes (What a sucker I am). Well on the day that the auction was to take place I had a fever of 103. My son drove me to the property and I did the auction. At the end of the auction the highest bid was 240K. About 5K over my estimate. I presented the offer to her and she turned it down. I told her to cut her losses and take the offer, she refused. In case you don't know that means I didn't make any commission. Oh well, I went my way and she went hers. Five months later she called me and ask if I could call the person who made the offer because she was now in foreclosure. I said OK even though I knew what the answer would be. Yes the buyer had bought another property. The moral is stay with what you know is right, DON'T BE A SUCKER!
Bob
DON'T BE A SUCKER!
10 comments • Robert Calistri - The Auction Specialist • September 12 2008 09:42PMComments
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Hi Bob. Sad story for all involved.
Thanks for writing,
Ken
if only we all had a crystal ball to predict the future. This has been a very difficlut market for alot of people.
You're right sad for me, disaster for her.
Thanks,
Bob
Bob,
Thanks for being so vulnerable, we have all been there. I learn more and more each day to trust my instincts, it is a contstant work in progress.
Thanks Robin, Your right we all have to work at it and stay with the plan.
Bob
It is especially true when you deal with friends. You just can't tell them "no".
Pricing and timing are everything and you were right on both. Pity that your seller was not ammicable and did not see what was coming.
Jon,
Your right. I don't take on friends I refer them out. Its safe.
Bob
Its hard to take a big loss like that upfront. Just ask the banks that won't take a reasonable short sale offer and end up many more thousands in debt after foreclosure.
Hi Gene,
Your right what I didn't say was that it cost her 150K in the foreclosure had she take the offer I had presented she would have lost 65K. I know hind site is 20/20.
Bob