Property Sales : 128 Homes to Be Sold at 3 Auctions

By JOHN O’DELL JOHN O’DELL..BD: TIMES STAFF WRITER and DALLAS M. JACKSON

June 16, 1992 12 AM PT

Orange County home shoppers who have toyed with the idea of bargain hunting at one of the area’s growing number of real estate auctions can have a field day--or two or three--this month.

A total of 128 homes in Ventura, Los Angeles, Orange, Riverside and San Bernardino counties--including several duplexes and four-plexes--will be offered in a series of sales during the next two weekends by auctioneers for the federal Resolution Trust Corp. and the private Real Estate Disposition Corp. of Santa Ana.

The trio of auctions makes June one of the busiest months on record for the burgeoning residential auction industry in Southern California.

The job of a good auctioneer, of course, is to get the most money for the seller. A successful auction is one at which the property sells for at least 90% of the pre-auction asking price, industry insiders say.

But bidders who keep a grip on their wallets and don’t succumb to auction fever can wind up with more house for less money than in a conventional sale.

At the two RTC auctions this weekend, for example, most of the homes are repossessions that have been appraised below the original selling price.

The RTC auctions feature 31 resale properties in Los Angeles County, two in Ventura County, 11 in Orange County, one in San Diego County and 11 in the Inland Empire.

The individual Orange County properties are in Anaheim, Buena Park, Huntington Beach, Laguna Niguel, Mission Viejo, Rancho Santa Margarita and Santa Ana.

The Los Angeles and Ventura properties will be on the block Saturday at the Long Beach Sheraton hotel beginning at 2 p.m., said Leslie Manabe, an account executive for Kennedy-Wilson Inc., the Santa Monica real estate auction firm handling that segment of the RTC event.

Manabe said that Kennedy-Wilson has fielded more than 7,800 inquires about the Saturday auction and that 500 prospective bidders attended a “how to bid” seminar earlier this week.

And more than 12,000 brochures have been mailed to people inquiring about the Orange County-Inland Empire homes.

The agency’s properties in Orange, Riverside, San Diego and San Bernardino counties will be auctioned Sunday at the Long Beach Sheraton. That auction, also beginning at 2 p.m., will be conducted by Allied Federal Auctioneers of Chandler, Ariz.

Manabe said that prospective bidders should arrive at noon if they have not pre-registered. Title reports, inspection reports and other documents for each of the properties also will be available for the two hours before the start of bidding on each of the auction days.

The following Sunday, June 28, auctioneers for Real Estate Disposition Corp. will be offering 52 new homes in Orange County and 20 in Whittier. The sales will begin at 1 p.m. at the Anaheim Marriott hotel.

Jim Lewis, senior vice president of the Santa Ana auction firm, said the event, which will include single-family detached homes in two separate developments in Placentia as well as townhomes in Garden Grove and Whittier, has already drawn more than 900 registered bidders, including more than 300 who have said their interest is in the 17 homes in one of the Placentia developments.

“This is one of the largest auctions of new homes ever held in Orange County,” he said.

The Placentia homes are the last remaining units in two developments: Moonshadow Homes near Valencia Avenue and Palm Drive, and Berkenstock Estates off McCormack and Berkenstock lanes. The townhomes, Lewis said, are new projects that are opening with an auction. The two developments are Flower Villa at Flower and 13th streets in Garden Grove, and Valley View Townhomes at Valley View Avenue and Imperial Highway in Whittier.

Sold to the Highest Bidder

The Resolution Trust Corp. and a private Santa Ana firm will auction 128 homes in Southern California during the next two weekends. What to do:

BEFORE THE AUCTION

Obtain a catalogue on the property. If the sale is to be conducted by a private company, drop by the development to look at what is being offered. For an RTC property, call the appropriate auction firm to get the names of the brokers showing each property.

Inspect the property. Review all documentation; do not be afraid to ask questions.

Inspect the surrounding neighborhood. Make sure the house you want is a place you want to live.

Consider hiring an appraiser. Have a real estate expert look at the property, or ask a local agent for recent sales prices of comparable homes in the area.

Count the costs. If you are bidding on a resale property, deduct the cost of any needed repairs and improvements from the amount you are willing to pay. Such properties usually are sold “as is.” New homes, by contrast, typically come with a builder’s warranty.

Sign up. You must be registered to bid on a property. Complete the bidder registration form, and mail it back before the deadline.

Pre-qualify. Whether you go through your own lender or ask the auction company for a referral, fill out the credit history and loan application in advance, and get a pre-qualifying statement that tells you how much money you are likely to borrow.

AT THE AUCTION

Check in early. Obtain a bidders card.

Be prepared. You must have with you:

--A cashier’s check made out to you for $2,000 for an RTC property, or $2,500 for a Real Estate Disposition Corp. property.

--Two years of tax returns.

--Two months of bank statements.

Pick several properties. Have alternates in mind in case you are outbid for your first choice.

Set a maximum. Decide the most you are willing to spend, and do not bid higher.

Be ready to bid. When auctioneer calls your property, raise your bidder card to be acknowledged.

Stay calm. Auctioneers rely on the phenomenon known as “auction fever” to help them get higher prices. Auctions can be exciting, but engaging in a bidding war is no way to secure a bargain.

AFTER THE AUCTION

If you are the successful bidder. Sign a bid confirmation form listing the property and your successful bid amount. Then sign a purchase and sale agreement, and complete a loan application.

If you are outbid but still interested. Fill out a backup buyer card and turn it in at the end of the auction. If the property becomes available, you will be notified.

WHEN AND WHERE

To obtain catalogues, registration instructions and the names of brokers showing RTC properties before the auctions take place this weekend and next, call the companies listed.

Saturday, June 20

Property location: Los Angeles, Ventura counties

Number of properties: 31 resale properties in Los Angeles, two in Ventura

Time: 2 p.m.

Where: Long Beach Sheraton

Auction firm: Kennedy-Wilson Inc., Santa Monica

Phone number: (800) 522-6664

Sunday, June 21

Property location: Orange, San Diego counties, Inland Empire

Number of properties: 11 resales in Orange, one in San Diego, 11 in the Inland Empire

Time: 2 p.m.

Where: Long Beach Sheraton