Blog Stories To Auction or Not To Auction

To Auction or Not To Auction

By Kim Parmon, April 30, 2019

Michelle and I met in a Facebook group, of all things.  She was looking for someone to help her with auction properties and I’m one of the few people out there that know how to do that, so I reached out to her.  It only took one phone call for me to know that Michelle was a special person with a huge heart.  She wanted to invest her money in a home that would keep her daughter in the same school district but also allow her to care for an aging relative.  Was auction the way to go?

The reality is: no, auction is not the right way to buy a house for most traditional homebuyers.  Technology makes it easier than ever for buyers to have access to tons of information and the prices that they see on auction.com or on the Zillow pre-foreclosure property list seem too good to be true.  ESPECIALLY in Portland’s hot real estate market.  Buying a home at auction can’t be that much different than buying it through the normal escrow process, right?  You might be surprised.  Here are some of the things you can expect if you are looking to buy a home this way:

  • You have to have cash (or hard money)
  • You can’t get inside the house at all before buying it (except in very rare circumstances).  Definitely no inspections!
  • There is no escrow process.  If you are the winning bidder the house is yours.  No backing out!
  • You may end up having to evict a very upset or angry owner or tenant
  • Title may not be clear, leading to costly mistakes
  • You have to physically be at the auction to buy, unless someone bids for you.  And auctions frequently postpone so you may need to do this more than once

Auction can be an excellent tool to acquire investment properties if you are a seasoned investor.  If you are a first time homebuyer you may end up biting off more than you can chew so be careful!

Once Michelle and I talked and she understood the realities of auction we shifted her search to listed properties.  Finally, the right house popped up: there was enough space for herself and her daughter AND a detached cottage that was perfect for her grandfather.  And the best part?  She’s investing in a rapidly appreciating neighborhood and no longer paying rent.  Congrats, Michelle!  It’s been my honor to assist you.

Are you looking for an investment property?  Give me a call!

Kim Parmon, Licensed REALTOR® in the state of Oregon- 503-438-5101

Kim Parmon

Principal Broker | Earth Advantage Certified | OR

She/Her

Kim Parmon Principal Broker  Lead Listing Agent Earth Advantage Certified | OR kim@livingroomre.com Oregon is the fifth state that Kim has called home in her life, and this one is sticking!  After moving multiple times in her childhood, Kim fully understands how empowering homeownership and having roots is.  She loves waking up every day in this beautiful place and wants everyone to experience what it feels like to live in their dream home. As a kid, Kim spent her free time wandering through open houses and exploring construction sites for the fun of it.  After careers in the professional ballroom dance world, the entertainment industry, and the service industry, Kim stumbled into real estate as both a passion and a profession through the purchase of her first bungalow.  After renovating it with her husband and selling it for enough of a profit to pay off their debt as well as buy a new house to live in, everything clicked: she decided to get her real estate license and help her community experience the emotional and financial benefits of homeownership.  Kim put down roots in Portland in 2015 and has cultivated a referrals-based business throughout the years.  She understands that real estate is a service and the experience she gives her clients is first-rate.  She works hard to anticipate needs.  She is responsive, thorough, empathic, and a skilled negotiator who enjoys market analytics and strategy as much as she enjoys connecting with her clients.  Her ethics and reputation are the cornerstones of her business and the happiness of her clients is the yardstick that she measures success against. Kim merged her business with the best agents in Portland at the beginning of 2022, which has allowed her to give her clients more resources, more advocacy, and a top-notch real estate experience.  She is honored to be a part of her incredible team and feels lucky to go to work every day. In her free time, you'll find Kim enjoying lazy evenings by the fire with her husband, daughter, and rescue dogs.  She loves dancing, live music, exploring all of the beautiful places around us in the PNW, enjoying a cider and a good meal with friends, and browsing Powell's for a great new book. Andee Ziegler  Licensed Listing Team Operations Manager andee@livingroomre.com Loving where you live will change your life. Everyone deserves that joy. For me, real estate has been a way of nurturing my community and doing what I can to help people find stability, grow generational wealth, and create a little space of their own in the world. For 15 years I found the most joy in helping first-time homebuyers, guiding my peers through their first major investment and dreaming up what home means for them. I’ve done restoration work on homes from a variety of eras, 1894 Victorian farmhouse to classic 1950’s ranch. I enjoy empowering new homeowners with the knowledge I’ve garnered over the years, from systems to finishes.  In 2022 I joined forces with some of the best realtors in the biz and shifted my focus to operation management for listings. This welcome change opened up space in my life: more cake, less pants.   Andee Zeigler | Licensed Listing Team Operations Manager | andee@livingroomre.com Jessica LeDoux | Lead Buyer Agent | Broker Licensed in Oregon | jessica@livingroomre.com  Karim Alaeddine | Operations | Principal Broker Licensed in Oregon | karim@livingroomre.com  Jenessa VanZutphen | Buyer Operations Manager | Licensed in Oregon | jenessa@livingroomre.com 
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  • T: 503-438-5101
  • kim@livingroomre.com

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