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Going, going, SOLD or was it? Bargain?
Last month developer John Leonard, who designed and built Rivers Side at Washington Square in West Sacramento decided to invite an auction company to sell 22 of the original 25 townhomes that he couldnt sell, himself.
200 eager townhome buyers reveled in the auctioning off of these townhomes valued at $409,500 to $467,500 that had opening bids of $259,000 to $279,000.. They were looking for the buy of the century.
As I have stated before, auction companies bank on the fact that the low bids will entice the home buyer to come and get caught up in the frenzy of an auction and bid much higher.
In this case, the so-called winning bid for a $419,500 townhome supposedly sold for $307,500 and another with 1628 square feet valued at $467,500 supposedly sold for $355,000. 
The home buyers were delighted to pay the 5% commission to the auction company that John Leonard brought in to sell his townhouses. Everyone went away thrilled that they had paid bottom dollar for new townhomes just off the I Street Bridge from Downtown Sacramento in West Sacramento.
Each of the winning real estate bidders signed an agreement that the Developer and the Bank had 10 days to accept or reject their winning real estate bids.
It seems that the Bank doesnt agree with the winning real estate offers. So, these townhouses are not sold after all. There are some Townhome buyers who are left scratching their heads, now. It seems that the price that the Buyers were willing to pay is about $80,000 short of what is owed on the properties. Back to the drawing board
The auction company was hoping for the frenzy to bring higher bids but alas, these townhome buyers were not going to pay anymore than what they thought was reasonable. The Bank and the Developer now have 22 townhomes they still own.
This area in West Sacramento is a up and coming area in my opinion, with redevelopment and building in the process of revitalizing what once was a less than desirable area.
It seems that the Teachers Union, STRS has paid CASH for the current building in the process of construction right on the Sacramento River across from Old Sac on the West Sacramento side (see new construction on the right side of the photo above). There is money being spent and plans being made this is when the rich get richer so take notice and get in while the getting is good! Just a tip to the wise!
Other Related Articles:
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Sacramento Real Estate Writes Letter to ALL Banks
Sacramento Real Estate Gets Hit AGAIN by Auction Company
Gena Riede of Sacramento Real Estate Voice on Channel 13 News
Sacramento Foreclosure Auction Looking for Suckers!
Sacramento Short Sales and Foreclosures
Are Short Sales and Foreclosures A Good Deal?
Foreclosures, Buy or Dont Buy?
Do You Understand Foreclosure?
I guess this falls under the – if it sounds too good to be true – it probably is.
Thesa, yep I’d say everyone thought they were getting a heck of a buy only to find out that there was no buy to be had!
If it looks too good to be true, it usually is.
I’m sure auctions have their place, but so far I have not experienced were the buyers really got a great deal.