Auction for LV homes draws 2,500 bidders; 87 homes sold

A public auction of 90 bank-owned homes in Las Vegas attracted 2,500 people Sunday, one of the best crowds for any home auction in the country, Dave Webb of Dallas-based Hudson & Marshall said.

Bidders purchased 87 of the homes at an average of 80 percent to 85 percent of the list price, Webb said. Prices range from $76,000 to $715,000.

The homes are under contract for sale, but still must be approved by the bank.

Webb said auctions are becoming more prevalent in Las Vegas and the rest of the nation. Last year, he had only a dozen homes to auction in Las Vegas.

Next week, he's got 300 homes to auction in Indiana and Illinois, including 200 in Chicago, and after that he goes to the Southeast for 600 homes on the block in Georgia, Alabama and Tennessee. In September, he returns to Detroit, where foreclosed homes sold for as little as $30,000 earlier this year.

Webb said banks are able to dispose of hundreds of real estate-owned homes at good prices for buyers, which benefits both parties.

"The lenders we work with are familiar with our program. They know we don't give stuff away," he said. "The bank still has to approve the bids, but they know what we're getting is really what it's worth on auction day."

Andrew Pugh of SellFastLV.com said he attended the auction and was struck that only a few of the homes were offered in an "absolute auction," which means the bank is under no obligation to accept the price from the high bidder.

"All you've really accomplished by being the high bidder is the right to have the bank consider your offer," Pugh said. "So you can go research these homes ahead of time, attend the auction and be the high bidder and the bank can still say, 'No thanks.' Most likely they would counteroffer, but I don't see how you're any better off than just making an offer through an agent."

Webb said Hudson & Marshall will probably be returning to Las Vegas within 90 days and he expects 90 to 100 more homes to be offered at auction.