Home auctions in Vicksburg – are they successful?

Having noticed another Vicksburg home that is about to be sold to the highest bidder, one reader has posed that question:
Another high-priced Vicksburg home is now listed to be auctioned.  The Ridges home at the corner or Cherry and Belmont is the most recent one I noticed.  Today the sign went up and it is to be auctioned June 28th by Head Auction Company.  The same auction company that is representing the Balfour house on June 21st.  Are auctioning homes a new trend?  What type of success do they bring?  Is this something new to Vicksburg?
Your response is solicited.
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Published in: on May 9, 2008 at 8:02 pm  Comments (20)  

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  1. We sold our home by auction prior to moving from
    Wisconsin to Vicksburg.Older homes for sale in our area were plentiful so we decided to try auction. There were two options;We had the choice to refuse to sell if bids were too low or do an absoulute sale. We chose the latter. We feel we did much better selling our home for more than we expected. We had two showings prior to sale.Paid a flat fee of $500.00.
    We were pleased with the results

  2. It will be interesting to see how these two sales turn out. It will be interesting to see if this will be a new trend for selling homes in Vicksburg. Especially the ones that have sat on the market for “Y E A R S!!!!”

    I wish these folks luck and hope they have great success.

    I am not familiar with home auction sales. Only short-sales, forclosures, and such.

  3. u know most realtors don’t even advertise that home auctions are going on in this marketplace. Nor do they tell new homeowners what neighborhoods where foreclosed homes are. Nor the comporibles related to the market. Some have told me the market here is overvalued. If you apply the downward housing trend,homes are worth less than what a realtor,appriaser has priced it. And I heard a lot of locals have move out of here to Madison and other growning central Ms towns.

  4. Still, Vicksburg is an incredible market.

    People comming from other states to Vicksburg are amazed at the low cost of housing here not to mention what we pay in taxes “thanks to the casinos.”

  5. hey think about it for a minute. Just think if the casinos weren’t here at all,the property would be more affordable too.

  6. I don’t agree that our taxes are low. In fact, I believe I’ve read that considering all forms of taxation, Mississippi is one of the highest in the nation. And the city/county have just kept right on spending our money, regardless of how much the casinos contribute. The casinos were “sold” to us by claiming that property taxes could be lowered. That was crap. Governments always steal as much as they can, and spend every penny (and even put us in debt when they issue new bonds so they can spend more!)

  7. Malcom terrific point. I wonder if the city is in deep debt due to these bond issues? that has crossed my mind from time to time.

  8. The city, being us, is in debt, though I don’t know the total amount. One thing is for sure – We’ll be paying extra taxes for years to come to retire those bonds.

  9. I take it you gentlemen are local and are not comparing the tax on a home in Vicksburg as to what it would be in a major city. What were you comparing it to?

  10. The property taxes on my “residence” increased from $1,797.74 in 2006 to $5,432.47 in 2007. And that was after I vigorously complained following reappraisal and received some “relief.” That’s an easy comparison. If you have not yet experienced “reappraisal,” you’re in for a shock. These damned city/county government people have gone crazy.

    As far as comparisons to other cities, I have not done so; such comparison would be difficult since cities steal our money in many different ways, e.g., sales tax, local income taxes, property taxes, inventory taxes, business fees, personal property taxes (vehicles, etc.), etc., etc. As I mentioned earlier, overall, the citizens of Mississippi are very heavily taxed.

  11. Yes I have had property in Vicksburg re-appraised and I can, to a point, understand what you are saying. I also know there are many properties here that are under valued. That said, there are MANY that are over valued too. If you had an independent appraisal and it showed your home value to be higher then how can you dispute? Maybe if you are willing to go to the expense of a second or third appraisal? “OR” Possibly one can look for the appraiser that gives the lowest value to property if that’s what you are looking for.

  12. Another point to think about. Let’s say the city appraisal shows your property to be taxed at $100k. You list your property to be sold for $500k. Weather it sells or not you are saying you believe the property is worth that amount. Is it fair for the city to tax you on the $500k? What if they do? I am not saying it is fair. If they then tax you on the $500k you then would need to show that your property was listed and could not sell for what you were asking. I bring this up because it is a true example from another city and could happen anywhere.

  13. One of my associates told that Vicksburg has too many realtors. Also overall Mississippi has 33% foreclosure rate. And Jackson ms made national news a few months ago becouse house values had fallen at the time. Now some of these locals we have try to Play up Vicksburg as affordable. Just drive in the subdivisions and see how many homes haven’t been sold. I heard too that the property here is overvalued. Now this port trys to put itself out there as bucking the real estate bubble,if it really was it would be in the Clarion Ledger. Places like Madison,CLinton and Brandon have bucked the the trend. But not Vicksburg.

  14. I can see how it could be hard to choose a realtor anwhere you don’t know of one. Especially when you have so many to choose from. Be glad there are many to choose from and you aren’t stuck with a monopoly. Look at all the crooks in other fields we’re forced to deal with daily. We’re blessed with a choice here. Be glad one can choose who to or not to use.

  15. VICKSBURG REAL ESTATE —Worst investment in 40 years!

    I love the real estate business and I always have. I don’t know why i think i have lost more money then made money because i usually buy old historic houses and they come with lots of baggage.

    And I love to hear other peoples views on buying property buying and selling. Usually if a person has never been in the real estate trade they have a rosy picture of it all but those in the markets buying, selling and fixing up property have a more realistic view of it and that view is not so rosy in Vicksburg.

    Coming from New Orleans I found Vicksburg property to be cheap, dirt cheap compared to property nationally. But lets remember for those high taxes in other areas you do get services. In Vicksburg I can personally say I have not seen those services. So when you compare apples to apples I know why real estate is so cheap especially downtown.

    A FEW FACTS!

    I bought an old mansion that was converted into a four plex in the downtown area. It had been foreclosed and I got a fair deal on it about $50,000 and it appraised for $115,000 ————Does that make sense? Well I bought it redid it and it looked like a shinning star when I got thru with it.

    #1. I had one tennant for less then 6 weeks and they both left and did not tell me and all the government food spoiled in the fridge and there were so many maggots in the new refrigerators both had to be replaced at a cost of $1400. After 6 weeks the two units were basically destroyed and we had to re do them!——There is a very special kind of tenant in Vicksburg.———-While working on it someone kicked the door in and stole every power tool we had. I sold it and lost money on it

    #2. I bought another old masion a block away about 6000 square ft. Re did it and it looked great from the new carpet to the new washers, new landscaping and I was very proud of it. In a few weeks time they were dealing crack out of it and by the time i found out everyone in the neighboorhood knew and no one wanted to rent it because the neighboorhood was infested with drug activity.

    My average renter here was about 6 weeks! I tried to sell it but no one wanted it at any price. I had to let the bank take it back and lost over $50,000

    #3. Just a few blocks away I bought another 4 plex again fixed it up and in less then 8 weeks the roaches were so infested that I had to get professionals to try to get the roaches out. And they were not there when I re did it. The roaches came with the new tenants

    Many times when I did a check of the premises they had several families living in one small unit. After thousands of dollars in renovation the tenants basically destroyed them to a point that I could not sell it for anything. Again the bank took this one back too.

    #4. My personal home on Cherry st. I broke even on after renovations and living in it for 5 years. Lucky!

    #5. I could go on and on because i re did about 10 properties and lost on all of them. But the big one was my future office the clay st. complex at 707 clay st. During renovation it fell down and when we tried to clean it up the city tries to bring there boys in and now after $100,000 in legal fees the city of Vicksburg has basically confiscated the building, holding it ransom till we let there contractors do our job. And with the Vicksburg post as there allies they basically convinced the citizenry that we blew the dam thing up or something!!

    Ya see problems like this are the REAL reason commercial property is so cheap in Vicksburg because small business don’t want to put up with gestapo tactics. Its hard enough today to run a business, so no matter what king Lawrence says about bringing business in to the city. As a businessman that worked and lived in Vicksburg I can tell you that small business don’t want any part of Vicksburg.

    The real estate market is a direct connection to the political structure of any small city. And don’t get me wrong I loved Vicksburg and thought downtown would be a fun thing to do. Notice — I did not say profitable but fun because i lived close by.

    As a business person that needed 20 employees at any given time we could not make it there much less grow our business. Between the illiteracy, crack, crystal meth we choose NOT TO BE A PART OF IT.

    Preston Reuther

  16. VICKSBURG REAL ESTATE —Worst investment in 40 years!

    I love the real estate business and I always have. I don’t know why i think i have lost more money then made money because i usually buy old historic houses and they come with lots of baggage.

    And I love to hear other peoples views on buying property buying and selling. Usually if a person has never been in the real estate trade they have a rosy picture of it all but those in the markets buying, selling and fixing up property have a more realistic view of it and that view is not so rosy in Vicksburg.

    Coming from New Orleans I found Vicksburg property to be cheap, dirt cheap compared to property nationally. But lets remember for those high taxes in other areas you do get services. In Vicksburg I can personally say I have not seen those services. So when you compare apples to apples I know why real estate is so cheap especially downtown.

    A FEW FACTS!

    I bought an old mansion that was converted into a four plex in the downtown area. It had been foreclosed and I got a fair deal on it about $50,000 and it appraised for $115,000 ————Does that make sense? Well I bought it redid it and it looked like a shinning star when I got thru with it.

    #1. I had one tennant for less then 6 weeks and they both left and did not tell me and all the government food spoiled in the fridge and there were so many maggots in the new refrigerators both had to be replaced at a cost of $1400. After 6 weeks the two units were basically destroyed and we had to re do them!——There is a very special kind of tenant in Vicksburg.———-While working on it someone kicked the door in and stole every power tool we had. I sold it and lost money on it

    #2. I bought another old masion a block away about 6000 square ft. Re did it and it looked great from the new carpet to the new washers, new landscaping and I was very proud of it. In a few weeks time they were dealing crack out of it and by the time i found out everyone in the neighboorhood knew and no one wanted to rent it because the neighboorhood was infested with drug activity.

    My average renter here was about 6 weeks! I tried to sell it but no one wanted it at any price. I had to let the bank take it back and lost over $50,000

    #3. Just a few blocks away I bought another 4 plex again fixed it up and in less then 8 weeks the roaches were so infested that I had to get professionals to try to get the roaches out. And they were not there when I re did it. The roaches came with the new tenants

    Many times when I did a check of the premises they had several families living in one small unit. After thousands of dollars in renovation the tenants basically destroyed them to a point that I could not sell it for anything. Again the bank took this one back too.

    #4. My personal home on Cherry st. I broke even on after renovations and living in it for 5 years. Lucky!

  17. Preston, too bad about what all you and Mary have gone through. I do think you have left out some important facts though. I don’t know the condition of those 10 properties when you bought them but I see several of them now and I would have to say they need complete renovation from peeling paint, rotting wood in places, interiors not up to code from what I hear from the new owner………… should I go on?

    It’s a shame what happened to your buildings downtown on Clay Street yet that is now left to the courts to decide. I understand from reading court transcripts that you were given opportunities to resolve the situation.

    It’s a shame that for the past 2 or so years that’s what Vicksburgers and everone that sees our town has to see and remember us by – “those fallen buildings.” “What happened?” People ask. Many photographs.

    Possibly you can come to some sort of resolution and work with the Mayor to resolve your situation.

    There are people here that are not against you. Actually, many of us were on your side and were thrilled you and your wife were here.

    Vicksburg is a welcoming city and you both, “I’m sure, would be welcomed back. Just clean up your mess – PLEASE!

  18. Preston, Nancy Thomas told me the city offered to allow you to demolish all four buildings if you would get an Engineer to prepare a safe plan, and, further, that you did not respond. Is that true?

  19. Mr. Ruether’s rental problems in Vicksburg are the very reason we have such a shortage of rental homes.

    The law protects the renter. I heard a renter moved out of a rental and left a few things in the place. The owner didn’t have a forwarding address for them. The court would not allow the house to be cleaned out or rented for 8 months. They were allowed to then because the renter was located.

  20. aka-Anna, something about your comments doesn’t make sence. There is more to that story I am sure. I bet this renter “skipped out” not moved out. Tenants often leave things behind because they choose not to take them. It is best to put tenants on a month to month lease instead of a long term to protect both sides.


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