East Grand Rapids, Mich. (WZZM) - On Wednesday those in the market looking to purchase a new home will have a one-stop shop.
At 5:00p.m. a public auction will be held for more than 30 west Michigan homes currently in foreclosure.
And the numbers are startling.
For instance an East Grand Rapids home valued at more than $200,000 will go up for auction with bidding beginning at $9,000.
So those behind the scenes say do your homework and expect plenty of competition.
Standing outside one of his five properties up for auction, Michael Balsitis says the home on Cascade Road has been on the marker close to 120 days.
In a real estate market littered with foreclosures, Balsitis sees many banks banking on auctions rather than traditional sales.
The East Grand Rapids home is one of more than 30 in west Michigan up for auction on Wednesday; but for those buyer's dreaming in pennies, think again.
"The public thinks they're going to be able to buy the property for pennies on the dollar, that's usually not the case," says Balsitis.
But Rick Weinberg, Communications Director for REDC Auctions says great deals have been made, especially for those do-it-yourself types.
"If you're a handyman, if you're a contractor there's a great opportunity to move into a house where you can do the work yourself and you're getting a steal," says Weinberg.
Even if the buyer thinks they may have found their dream home for their dream price, keep in mind the banks gets the final word.
"Even in an auction, banks still have control," says Jennifer Ranville of Fifth Third Bank. "People know upfront when they're bidding on a home that the bank ultimately will be able to accept, reject or modify their offer."
Speaking of modifications, some physical ones may be necessary, since the homes come as-is.
"Buyer beware," says Balsitis. "You don't have as much control over the inspection process, the condition of the house etcetera."
Besides potentially small prices tags, there are other upsides to the auction process according to Weinberg. For instance, jump-starting to the local economy.
"When we put somebody back into this home they're paying a mortgage, they're paying property taxes, gas and electric and water bills, they're hiring people to landscape."
For every side involved it's an investment.
For the bank it's one into the homeowner, for the homeowner, one into the future.
The banks do rectify any back taxes or liens on the property, so buyers come in with a clean slate.
The auction happens Wednesday at 5:00p.m. at DeVos Place.
Anyone wishing to bid should bring a $5,000 cashier's check, payable to themselves, along with identification, recent pay checks and tax forms.
To look at all of the properties click on the highlighted link.
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