Boston Foreclosure Auction Drew Many Buyers
Massachusetts Foreclosures were up 62 percent in 2008. As a result, some banks are carrying many new properties that are worth much less than they were when they were purchased; banks also have to pay taxes on these properties and are eager to sell them, creating a buyer-friendly market. In order to rid themselves of the inventory, auctioneer Hudson and Marshall, held a foreclosure auction in Boston, where most of the 92 bank-owned homes were sold. According the auctioneers, most homes were sold at about a third or half of market value.
Pace said he has worked at about 150 such auctions in the past year, more than he had done any other year since joining the company in 2003.
According to Brad Pace an auction sales manager for Hudson and Marshall, the crowd at Massachusetts Foreclosure Auction on January 31st ranged from families with young children in tow looking for a home to business-savvy investors aiming to buy and flip multiple properties.
“The price is always going to be good, and a good amount below market value,” he said. “It’s a fast transaction, you close within 30 to 45 days, and you’re guaranteed a clear title with no owed back taxes or liens.”
While one can buy a house below market value at one of the foreclosure auctions, there are a number of things that might give a buyer pause. Kevin Norton, a licensed broker and auctioneer from Quincy cited the locations and conditions of the houses as a reason for some buyers to hold off on purchasing one of the house foreclosures. “The disadvantages are major,” he said. “Most people haven’t done inspections on these houses, and are buying them based on seeing the exterior. They don’t know if the foundation is falling apart, or the property needs major renovation.”
Hudson and Marshall, the auctioneers, do post all properties on their Web site 30 days before the auction and hold open houses so prospective buyers can bring inspectors into the house, which usually runs $300 to $400 for a single-family home.
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