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Dallas Home Auctions Gave Substantial Price Discounts

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By : John Cutts    99 or more times read
Dallas home auctions held in the first three months of 2010 granted whopping price discounts of 44 to 52 percent to buyers, according to a real estate firm focusing on foreclosures in Texas.

The firm said that investors got price discounts of 44 to 52 percent for the properties they purchased in the three monthly public auctions in the Dallas metro area. On the average, they paid only 56 percent of the appraised values of the foreclosure homes.

Foreclosed homes in Dallas County were even cheaper because investors paid an average of only 48 percent of the assessed values.

According to foreclosure analysts in the Dallas area, a huge majority of homes offered at public foreclosure auctions in the area are taken back by lenders. Only about six percent are being sold to owner-occupant buyers or to investors.

In the January to March quarter, only 250 units out of 16,137 foreclosed properties offered at the Dallas home auctions were purchased by investors or owner-occupant buyers. Nevertheless, these units were bought at bargain prices.

Foreclosure experts said that the percentage of homes being purchased directly at auctions is low because the process of participating wisely in auctions involves a lot of work and cash. They said that seasoned investors bring cashier’s checks in small denominations so they can be flexible with the prices and at the same time be ready with the payments.

The experts also said that typically only about 35 percent of pre foreclosures in Dallas and properties posted for the public auctions are actually auctioned off. They said that lenders decide to delay the sale of certain properties for various reasons, including short sales or repayment negotiations.

In another report released by the Texas A&M University Real Estate Center, total home sales in North Texas, which includes the Dallas metro area, fell in February as the median sales price rose year-over-year. A total of 4,099 homes were sold, marking a 5-percent drop from sales in February 2009 and a significant drop from the peak sales of 7,139 units in July 2009.

The sales price median rose by 1.3 percent from the February 2009 median to $139,900, the eighth consecutive month that the median price was higher year-over-year.

Although the median sales price increased for all types of homes in February, prospective buyers can prepare to participate in the next Dallas home auctions to be able to obtain great prices.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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