Sunday, October 15, 2006

Flippers In Trouble Turn To Auctions

From the Sacbee today:

'Going ... going ...' Sellers hope auctions will help deliver 'gone'

In Elk Grove, John Chargin, too, is turning to today's auction block for a 2,667-square-foot house he's listed at $549,950 and bought just last year. Chargin, a mortgage broker, moved to another office in California and wants to sell as fast as possible.

"When you have a mortgage and don't live in the house, you need to get rid of it," he says."

I ran a quick check of the auctions listed on West Coast Home Auctions site, and found two Flippers In Trouble:

5110 Pleasantglen Way
Elk Grove, CA 95758
Total Loss: $101,000Percent Loss: 22.4%
Asking Price: $349,000
Bedrooms:4    Baths: 2    Sq. feet:1979

Previous Sales:
Sold on 2003-08-12 for $299,000
Sold on 2005-10-13 for $450,000

MLS# 60102062      Google Maps
Assessed Value       Property Tax Bill

10212 Shoech Way
Elk Grove, CA 95757
Total Loss: $17,500Percent Loss: 3.6%
Asking Price: $475,000
Bedrooms:3    Baths: 2    Sq. feet:2667

Asking Price Changes:
Down 13.6% from $549,950 On 09-02

Previous Sales:
Sold on 2006-02-24 for $492,500

MLS# 60099147      Google Maps
Assessed Value       Property Tax Bill

The second listing is a classic example of a flipper by circumstance. The guy needs to move after buying a house within the last year. Whether he planned to or not, he has become a defacto flipper.

Of course, even though circumstances have forced him into selling, he was not above asking for a $50,000 profit when he first listed in early September. Also note the man's stated profession. If he can't break even from last year, who can?


Anonymous said...

Sunday Bee, Business, lists 4370 Suffolk Way, El Dorado Hills as being sold for $700,000...

4370 Suffolk Way, El Dorado Hills is listed in the Metro Section of the Bee as being on the market for $699,000 with a Pending Sale...

what's going on? Do they phoney up the numbers in the Business Section, Recent Transactions...for it would seem anybody but anybody with any sense, whatsoever, would not buy a home in El Dorado Hills for or over the asking price? Wouldn't one assume if one were looking for a home today, one would offer $450,000 or less for a $700,000 asking price?

Max said...

A pending sale isn't a completed sale. These days, it's not uncommon for a sale to fall through.

Anonymous said...

No, the Sale was listed in the Bee in Sunday's Business Section, "Recent Transactions" sold for $700,000


Then one goes online to the Bee, under "Homes" and picks up Metro, homes for sale in El Dorado Hills and one finds that same home listed for $699,000 with a "Pending Sale"...

and that's what screwy, unless the data in Sunday's Bee Business Section is completely bogus

AgentBubble said...
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AgentBubble said...
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Anonymous said...

The Bee's MLS data ("for sale" and "pending") is not automatically generated. It takes an RE agent to tell their data admistrator to do the input. Sometimes they forget for months.

The "recent transactions" section seems to be generated by county recorders data automatically.

many reasons to have sold a home for $1,000 more than list back, multiple offers, or just to tick you off!

Anonymous said...

Update Tues 10/17/06 on the Auctions from the Sac Bee Story Sunday:

Six of 12 homes sold at substantial reductions. The other six were pulled from the sale after not meeting the seller's reserves.

There is a telling commentary on the market. A seller can't even dump the house at an auction. Another good point: Almost all the buyers are owner occupants. The Flippers are leaving the market and we will find the true value based on fundamental affordability again. It may take a couple of years to get there, but it will happen.

Anonymous said...

Like I have been saying. What ever it was worth in 2003 is what it is worth now.

Why should values have gone up? Did some huge high paying company move into Sac and I missed it? There is no economic reason in hell why these prices should have jumped so dramatically. The only reason they jumped is twofold. Stupid buyers and crazy lenders.