Zetabid opens up Foreclosure Auctions beyond the Ballroom
Marketwatch alerts me to Zetabid, a new foreclosure auction offering by a consortium of publishing - LA Times, online auction transaction system provider - GoIndustry / DoveBid , and real estate brokerage - CataList Homes - to list and manage the foreclosure transactions. Zetabid will manage foreclosure auctions simultaneously in venue and via live webcast, allowing online buyers on a global level to participate in the most attractive housing market segment today.
What makes the Zetabid consortium interesting is the invisibility of the usual real estate players - the auction platform is based on a generic industrial platform, no foreclosure listers like RealtyTrac, and CataList is backed by Hal Ellis (founder of Grubb & Ellis), Marcus and Millichap, Bain and Company, and the Charles Schwab Corporation.
Why do the three partners make complete sense? Zetabid aims to leverage the LA Times to initially publicize their foreclosure auctions across SoCal's largest publishing platform, and later across the Tribune Company network. GoIndustry DoveBid has executed over 1,000 webcast auctions internationally (no real estate auctioneer can boast this), and draw in global buyers. CataList can "manage the execution of hundreds of properties during a single auction event".
Their first auctions are set for September 27-28 in Ontario, CA, the heart of the foreclosure ridden Inner Empire. This is a timely business model.
Update: 8/26/08 7:30am pdt Inman News coverage of Zetabid
Hi Pat. Note that these are NOT foreclosure auctions. In fact their competitors like REDC have been sued for calling them that. Foreclosure is a state mandated process with the auctions held on the courthouse steps. These are bank auctions of previously foreclosed homes. It may seem like a trivial difference - but there are MANY differences between the two types of auctions, and we should all be working hard to make sure the consumer know the difference.
At real foreclosure auctions properties often sell at deep discounts but there are number of very real risks, including no title insurance and the need to pay in cash.
To date the bank auctions have largely been over-hyped events where properties often sell for market value or more, but are much less risky and offer financing.
Will be really interesting to see how this new partnership goes, certainly an interesting combination of players.
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Thanks for making the distinction Sean... I'd be interested in finding a guest post who can explain the differences between foreclosure auctions and REOs in more detail...
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Wow! This sounds like a great idea. Seems like you can reach a very large population...great for those who want to remain anonymous.
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