Saturday (yesterday) I attended a couple of auctions. The first one was for a couple of tracts near Mike Smith's new location next to I-24 here in Paducah. The tracts totaled a little over 7 acres in two tracts. Included was a modular home that is being rented for $650 / month (I think). The land in that area is development property. This area is currently home to several hotels, Mike Smith Toyota, Heartland Homes and several other businesses. I understand that Mike Smith paid about $115,000 per acre of his new car lot. These two tracts sold for a mere $50,000 per acre at the auction I attended. The auctioneer didn't appear real happy about the selling price.
The second auction I attended was for a home at 1531 Jefferson St in Paducah. This victorian home was a 4BR, 2 BA home with nearly 2,400 sq ft of living space. The asking price of this home was $96,000 when it was listed with a local brokerage. The home appeared in good condition although one of the upstairs rooms I toured had a severely crooked floor. This home sold for $70,000
The auctioneer didn't appear to be very pleased with either of these auctions. I wonder what his sellers opinions are now that the auction is over. Auctions may lead to an immediate sale of property but the sale amount may be less than what's expected, a trade of sorts.
The auctioneer charged a 10% buyer premium.
The real estate business can be enjoyable but it's a business that should be taken very seriously. When I work with a client I do my best to ensure they are well advised before making decisions.
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