Tuesday, October 17, 2006

FIT Auction Update

For those of you who haven’t seen this on Lander's Site, the FIT from the auction post decided not to accept a lowball offer:

Seller John Chargin was among the half-dozen who declined to accept a high bid -- in his case, $450,000 for an Elk Grove home he listed at $549,950.

But Chargin, who wants to sell the house quickly after relocating elsewhere in California, remains upbeat about his prospects.

"I think I'm going to sell this house from this auction just from getting so many people through it," he said Monday. "There is no way in this market I would have gotten that many people, so we'll see."

Our seller paid $492,500 for the place back in February. Sadly, I did not save the title search document listed on the auction site, but if my memory serves me, he owed somewhere in the neighborhood of $440,000. An offer at $450,000 (less the 5% auction fee) gives him $427,500, which leaves him around $13,000 in the hole. Now, the carrying costs on the place are over $2,000 a month ($1,900 IO payment option with 1% teaser plus mello-roos and taxes), so in six months he'll be back at square one with the $13,000.

He's going to wish he took the offer.

4 comments :

JR said...

Max, You are correct. With prices starting to drop below $150/sf, he will be lucky to net $375,000 after closing costs. If he can not rent it out to cover the expenses, it is just a matter of time until he finally has to accept reality. As Mick sang..."T-i-i-i-i-i-i-me is on my side. T-i-i-i-i-i-i-i-i-me is on my s-i-i-i-i-de. Yes it is....."

AgentBubble said...

Max,

He refinanced on 9/20/06. He got a first of $414,000 and a second of $32,000. Incidentally, he also refinanced on 6/1/06 with a $393,749 first and $49,749 second. That means in just over 4 months, he's added $3,032 to his outstanding balance.

AgentBubble said...

I just realized something else with this listing...Check out the history of price changes:

9/1/06 $549,950
9/7/06 $475,000
9/10/06 $549,950
10/16/06 $528,000

Anyone else notice a strange pattern here?

chuck said...

I bid $180,000 and it probably isn't worth that!

Comeon, it's in Elk Grove! You aren't talking about some dude with a nice home with a pool nestled in a vineyard...or even a cheesy shack in Marin..

That's my offer, $180,000 (and that's too much), take it or leave it!