Tuesday, January 22, 2008

Auction action

I found a sale of one of the properties I had been watching on Realtybid.com. This home is up in the Bridle Creek development in Riverside. It was a bank owned home that they took back last Sept. They have been trying to unload it ever since. They started out at $899 and dropped the price again and again. It is currently listed for $609k. The bank is into it for $720k.

It was auctioned off on Realtybid.com last week. The winning bid appears to be $539k. To me that still seems a bit much for this particular property. It has ZERO landscaping and there are several other similar properties in the development for sale around $600k. I would think that he could have worked a better deal by getting the other properties to fight for the sale. No matter, $539k if it closes will be a step in the right direction. That home sold new in June 05 for $779k. So that is a $240k haircut or a 31% drop from the 05 price. Compared to the prices of the other homes this looks like a good buy. Looking at foreclosure.com shows me that there are a lot more of these homes going to be REOs later this year. I think that home has another $100K to go down. I'm thinking these will bottom out in the mid $400s.


papasmurf said...

I don't think that is a deal. On that site there is a 5% fee tacked onto all winning bids. That takes his price up to $566k. I bet he could have done better submitting an offer directly to the bank.

golfer_X said...

This thing is still showing active. In fact they just reduced the price again to $589k. Maybe the lender did not accept the auction price and thinks they can do better. It's gonna be hard to move considering there are 4 or 5 other model matches for sale in this tract. One has a pool and is $580k (shorty though).

Tom said...

Interesting, yeah, the housing bubble really inflated a lot of real estate out there. How are the things going with the real estate auction company? It's been a while, so I'm sure it's been sold by now.