Friday, September 14, 2007

July 22 Auction Results

Some of you may remember the Hudson & Marshall auction on July 22 at Sacramento's Radisson Hotel. They were auctioning off 175 homes, and 61 were in Sacramento County. Almost 2 months later, I looked up the status of those 61 homes and found out the following:

Sold - 11
Pending - 11
Withdrawn (Not relisted) - 2
Temp off Market - 2
Active - 34
Expired - 1

Of the 11 that have sold, here are some stats on them:

MSL#_____List $___Sale $___Amt Financed
70044644 - 397900 - 350000 - 90%
70047013 - 430000 - 329900 - 90%
70049502 - 329900 - 305000 - 100%
70049631 - 334900 - 265125 - 100%
70057307 - 355000 - 244000 - 100%
70050597 - 249900 - 220000 - 100%
70050421 - 209900 - 219000 - 100%
70036155 - 288000 - 207000 - 95%
60132148 - 254900 - 179000 - 100%
70058190 - 159900 - 150000 - 60%
70019144 - 189900 - 105000 - 0%

What amazes me is that 6 of these homes were 100% financed. I wonder how long until some of the 6 make it back on the list....?


Gwynster said...

Excellent follow up!

The one in Woodland sold
List 324k, sold 262k (250+ 5% comm)

I had wondered if the banks were going to take the low offers. I also wonder if what I saw was
A a sea of shill bidding
B people who couldn't close
C lenders rejecting the prices
D - a combination of all that.

I wonder howo the three in Dixon did.

AgentBubble said...

Do you have the addresses or MLS numbers? I'll look them up.

Gwynster said...

No >; (

I just tossed out the big brochure two weekends ago in a cleaning fit.

wrong moves said...

Great info

I just wish some of the houses I am tracking were showing drops in sales price from list price.

The highest so far was -6.081%. It sure doesn't help lower the comps any.

smf said...

I bet a lot of those houses sold were to 'investors' waiting for the market to come back next year, and then they could sell at a large profit...


New NAR bumper sticker

"Don't worry, the market will come back next year"

(Hint: same as 'Free crabs tomorrow')

patient renter said...

There were some hefty discounts in there :)

Gwynster said...

the best part was when the audience began to collectively laugh when any property was up to withing 75% of it's asking. Happened on just a few and the laughter was definately audible.

What I found interesting was the number of people that come for just 1 property and if the bills went too high, they worked out.

Could our local buying public be wising up?

Anonymous said...

AB, are you saying less than 50% of the houses at the auction closed escrow. Every one of those properties had a winning bid and the gavel fell.

It just shows you what a shill game the auctions are. When they get to the stage of all cash, no reserve bids, I will come out to play.

Thank you for your excellent work.

AgentBubble said...

bubble sitter--yep, that's exactly right. Strange huh?

Anonymous said...

I have tracked H&M auctions here in Vegas and the result is similar. Perhaps 10% of the high bidders actually end up buying. The reason is that the auctions are not "absolute". The auction is a sham designed to stir up interest in the properties and get free publicity on tv and in the newspaper. Often if there are 100 homes to be sold, 10 will have sold before the auction date because people went to preview them and made offers before the auction. This is the whole idea, that the free publicity brings out buyers who make offers.

The high bidder writes a check and signs a contract and goes home thinking he bought a house. The next day that is sent to the bank, who most often says that is too low and counters back to the winning bidder, AND EVERYONE ELSE WHO BID. They try to drive the price higher. If they still can't get what they think it's worth (banks are still unrealistic), they leave it on MLS and lower prices a bit each month while waiting. The 11/2006 auction still has one house listed on MLS and unsold almost a year later.

The banks have no serious motivation to sell cheap. For now they don't want to trash the market further, and so they don't deal. Wait till a year from now when they own 5000 houses, and many on every block are bank owned.

Anonymous said...

Does anyone have a bid contract for these homes that are for sale?

Seems, as always, you've gotta read the fine print, but at most auctions I've been to, when items sell, they are sold - period, and when you bid, you are making a contract with the auction house that you can pay the bid price and the auction house premium within 24-48 hours of the gavel dropping or close of the auction. (although I haven't been to one of these real estate auctions.) Makes one wonder about the auction licenses, and who's really selling these homes (or if there intent is to really sell them at auction!)

Seems there are some legality issues with this auction house (&/or the banks, or both), and if so, someone needs to report it to the attorney general for prosecution.

I'd be pissed off if I went all the way to one of these auctions only to find that there was a lot of red tape added when I got there!

If I'm going to an auction to buy something advertised, I'm going to buy something, NOT sit around and have someone jerk me around after the bidding goes down!

I received a large book the other day and am interested in some of the homes for sale, but don't need to waste my time bothering if what you guys are saying is true.

It does make one wonder about those places with starting bids of $1,000!?!

If anyone here has gone to the auctions and bid, PLEASE post the bidding contract and terms! I'd like to see what I'd be getting into before I think about taking a trip to bid on some of these., and if it's a scam thing, then that needs to not only be made known to the general public and news teams, but also again needs to be prosecuted to the fullest extent of the law.

Anonymous said...

I've been to one of these home auctions and there were definitely shill bidders who would push the price up and then stop bidding. One was sitting right in front of me. She had a baby next to her and she bid on every home right from the word go and kept bidding -- I suppose they get a signal when to stop.

I can't believe that this is legal to do. This industry needs regulation big time.