Builders Turning to Auctions to Move Property

Thursday, June 14, 2007
Topics: Economy
Download  RSS  Short URL  Share

The region's slow real estate market is inspiring some builders to turn to auctions to sell off properties that haven't been moving. ideastream's Mhari Saito went to an auction last night in Lorain County and filed this report.

Rulah Raphael had been keeping an eye out for property in Union Station, an upscale housing development in southern Lorain County. Then earlier this month she saw ads listing an auction for lots there.

Rulah Raphael: I was hoping to get a great deal as opposed to paying retail.

Raphael was one of seven who purchased property - she paid $29,000 dollars for a lot once listed at around $60,000. Joel Dutton says this was the first large auction of lots ready for new homes that his company, Dutton Auction and Realty, has done in five years.

Joel Dutton: This year more builders will talk to us realizing the market has changed. it’s a challenge selling lots right now in this market.

But its not just builders showing more interest, area auctioneers say. With inventory up and foreclosures skyrocketing, lenders are also starting to make calls to private auction firms, interested in finding out how to unload homes they’ve had to take back from loans gone bad. I’m Mhari Saito, 90.3.

More In This Series...

This feature is part of the series Mortgage Meltdown.