Auctions in the New World of Home Sales

Going once, going twice, sold..... in a different way than you could have imagined.



Anderson Homes is just one of many builders who have utilized the auction procedure for selling homes. It's news today in the Modesto Bee, as some neighbors weren't thrilled about this. Here's the article: http://www.modbee.com/local/story/85257.html . What's most interesting to me is that, unlike with a traditional sale, buyers can buy more than one, and buyers can purchase for investment purposes. That is, buyers don't have to reside in the home.



This is interesting because the lender normally has something to say about purchasing for investment purposes, and lenders these days are trying to figure out the new world order for home loans. Do they care about these new policies of homebuilders? I'd be interested to hear about this from mortgage brokers and lenders.



This is also interesting because it really changes the dynamics of a neighborhood. It's true that right now many neighborhoods are ghost towns. When the market turns around, and it will, many of these neighborhoods will have a much different look and feel from what some developers envisioned when they designed them. All due to these changes in the market.