Michigan Real Estate Auction Draws Hundreds of Bargain-Seekers
You wouldn’t have known that the housing market was in a slump and that the rates of foreclosure among Michigan mortgage holders were soaring - at least not judging by the crowd of prospective home buyers vying for nearly 90 properties at a real estate auction in Troy, Mich., on Sunday afternoon.
According to the Detroit News, an eager, standing room-only crowd of about 600 people packed a room hoping to snag luxury homes and other properties at bargain prices. The auction was sponsored by Neumann Homes and allowed builders to unload property and recoup some losses in the midst of a stagnant Michigan housing market.
Many of the high-end residences were furnished and were builders’ models. Some were builders’ closeouts. An upscale, three-bedroom home in Rochester Hills sold for $400,000 in the first 15 minutes of the auction. The asking price of the 3,031-square-foot, three-bedroom home was $523,297.
A few minutes later, a home in the same subdivision sold for $315,000. No deep discounts pervaded, but there were some good deals during the day.
Buyers also had to pay a 3 percent real estate auction premium for their homes. The properties mostly were in Oakland County communities, such as Rochester Hills, Clarkston and Highland Township.
Don Marlinga, a Clarkston resident, said he thinks he got a good deal on a four-bedroom, 2,576-square-foot home in the Cheshire Park subdivision in Clarkston, paying $215,000.
“I’m happy. Time will tell whether I got a deal,” he said.
The auction was a nail-biter for Tim and Sandy Sam. The couple had their hearts set on one of the luxury homes nestled on the Oakhurst Golf and Country Club in Clarkston, but they weren’t budging from their $275,000 budget. The home they wanted went for $280,000 to another bidder.
“We had discussed how much we wanted to spend. We almost had it,” Tim Sam said.
Elyse Record, a Detroit homeowner, was hoping to get in on bidding but couldn’t because she wasn’t able to register in time. She said a misprint in literature for the event caused her to miss the deadline. When the next real estate auctions come around, she said, she’ll be ready.
“There were good buys. I’m looking forward to the next (auction),” Record said.
Matthew Chojnacki, president of Harbor Mortgage in Berkley, said turnout at the auction shows there’s hope for the state’s housing market, particularly if Michigan mortgages remain cheap.
“There are plenty of people interested in buying a house,” he said. “The market is not as bad as everybody thinks. It’s just that a lot of people want to buy a house but they have a house to sell, too.”