Auctioning Homes is Latest Trend in Real Estate Market

02/08/2005
Auctioning homes is latest trend in real estate market

By BATTINTO BATTS, The Virginian-Pilot
© February 9, 2005

VIRGINIA BEACH — When D.W. “Si” Simons retired from the Navy in 1979, he was looking for a home on a tree-canopied lot with a view of the water.

He found what he was looking for in Little Neck and paid $90,000 for the home on Little Neck Point. Over the years, Simons put on a $140,000 addition and spent $20,000 or so for repairs and upgrades.

In recent years Simons watched the house’s value increase and with it his property tax bill. Simons, 76, began to wonder if the 3,500-square-foot, six-bedroom house was becoming too much for him and his wife Louise, to manage. They decided to sell but didn’t want to pay Realtor fees or take on other costs that frequently come with transferring ownership of a piece of property.

So they turned to a Norfolk-based company to handle the transaction. With the hot housing market, more sellers are turning to Auctioneers to handle the sale because it is considered cheaper and faster.

The seller pays none of the traditional costs involved in the process, such as a home inspection or a buyer’s warranty. The buyer pays a fee to the Auctioneer, which is usually between five and ten percent of the sales price, and must have a ten percent cash down payment.

A crowd of about thirty people gathered on the lawn of the Simons residence and initially bid on household items. At 1:00 p.m., Tuesday, it was time to start getting nervous.

Shortly after 1:00 p.m., the Auctioneer began his Auctioneer fast talk, starting out at $500,000. Within seconds, it was up to $750,000 and then $800,000. It looked like the bidding might go beyond one million dollars, but then Zedd stopped. There was no response to his pleas.

“You all are sleeping,” the Auctioneer yelled. “Wake up. This is deep-water property. This is nothing but gold.”

Still no response. At least not vocally. Two groups of people huddled, likely discussing prospective bids and prices. At 1:10 p.m., as Simons was pacing back and forth in the yard while his wife sat inside. Simons was prepared to let the property go if a bid reached $825,000. The Auctioneer resumed his pleas and finally got the number the Simonses wanted. Sold!

The buyers think they got a prime piece of Real Estate in this age of soaring prices. “This piece of property is much more beautiful than people realize,” Cathy Absher said. “Once it is cleared, it is going to be beautiful.”

After the crowd was gone, Simons took a seat in an easy chair inside his home and breathed a sigh of relief. “The monkey’s off my back,” he said. Then the tears started to well in his eyes as he thought about all the years and effort he put into the home. “It wears on you.”

The buyers, who had to qualify to participate in the bidding, scrambled and prepared to make a run to the bank for the necessary down payment and fees. Simons invited them back later for a celebration. “I’ve got a bottle of champagne,” he said.