Friday, April 25th, 2008 at 1:02 PM
On the REO Trail
We’re in the ‘pre-listing’ stage of nine Countrywide REOs, which includes evicting occupants, removing trash, making repairs, and getting a price.
For those wondering if listing REOs will become a full-time obsession, rest easy. I have hired three agents and two staff people in the last 30 days, growing Klinge Realty to ten agents and three staff people. We have excess capacity, and I think we could handle a hundred of these REOs – bring ‘em on!
Having adequate staffing enables me to continue my Carlsbad-to-Carmel Valley commitment, and keep the blog running!
But folks here are probably interested in the workings behind the scene on these Countrywide REOs, so here’s a peek.
1. The properties sent are so fresh off their trustee sale that eight out of nine don’t reflect the bank’s ownership on the tax rolls yet.
2. The properties are assigned to different asset managers, but they all seem to be on it. I’ve had over 50 messages through the system already, and by 1pm yesterday, five of the seven occupied properties already had their eviction notices processed with the attorney.
3. The processing is automated on the website www.REOTrans.com which also gives the public a glimpse of the properties once they are officially on the market.
I don’t like advertising properties that don’t have a price on them – who cares about a property unless you know what they want for it?
But to give you a taste of what’s coming, here’s the one that will probably be the first to hit the open market:
392 Compass, Oceanside
4 br/2.5 ba, 2,209 sf
$469,000 SP 3/04
$431,000 loan amount foreclosed
YB: 1979
HOA & MR = $0
Compass Road is up on the hill in Sea Mesa, a typical tract built in the late-1970s in Oceanside. It’s a decent neighborhood too – I sold one of the 2,021sf models down the street to a postman in 1997, and they still live there (cops and postmen know where the better neighborhoods are). This one has a 10,000 sf lot, but the flat part isn’t that big, and well, um, I guess you can say the house needs some work. It still has the original wood shake roof, and the interior needs a good carpet-and-paint job, at a minimum.
I don’t anticipate any repairs being done by the bank, so figure this one "as-is". The opening bid at the trustee sale didn’t show up on the tax rolls, so I’m not sure what that was.
What will the list price be? I don’t have their opinion on price yet, and I’m not sure how much influence I will have.
They know about the blog, maybe they’ll listen to you? A set of Padre tickets to the person who guesses the closest to the eventual list price! The last two sales in Sea Mesa were both the 2,021 sf plan; $450,000 in December, and $399,000 in March.
Posted on Friday, April 25th, 2008 at 1:02 PM in Contests, REO Inventory | 48 Comments » | 
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I already got this email:
‘What does the second-place finisher get? Two sets of tickets?"
Come on, we’ve only lost 8 out of 9, and it’s early!
Jim the Realtor | April 25th, 2008 at 3:32 pm$399,000
Ted | April 25th, 2008 at 3:32 pm$349,900
SD_Coastal | April 25th, 2008 at 3:32 pm$389,900
CVman | April 25th, 2008 at 3:45 pmTed took it away already, but my guess would be $399K as well. Banks seem to like basing their list price on the last comp. (Don’t worry Ted, you can have the tickets)
Simone | April 25th, 2008 at 3:49 pmLP $145/sf at$320K
SP $300k
Lots of work required.
george8 | April 25th, 2008 at 3:49 pm$425,000
moneymarket | April 25th, 2008 at 4:00 pmLP: $369K
MN | April 25th, 2008 at 4:03 pmagree with a sub-300k listing price to generate buzz, probably can find a sale at low 300k. I’ll go with 295k.
ocrenter | April 25th, 2008 at 4:07 pmJim,
It’s good to know someone’s out there evicting the deadbeats and putting these houses on the market. There’s people like me that want to buy.
I say list for 275k and see if you can get a frenzy going. It’s hard to justify a high price when the property is being sold "as is" and it needs what appears to be a lot of work.
shadash | April 25th, 2008 at 4:12 pm10 agents and 3 staff? I thought you were a one-man show. Congrats on the growth.
dejams | April 25th, 2008 at 4:23 pm$340,000
MANmom | April 25th, 2008 at 4:39 pm419,000
Chester | April 25th, 2008 at 4:39 pm379k and a free set of 4 blindfolds for the top of the 9th inning when you hear ac/dc….to go with the 4 free tix!
doughboy | April 25th, 2008 at 4:46 pm>>>> $389,000 <<<<< and then start dropping it 10-15K every month probably will sell for $310,000
OCVulture | April 25th, 2008 at 5:38 pm$315K
PCLoadLetter! | April 25th, 2008 at 5:47 pm$350,100
someone | April 25th, 2008 at 5:55 pm3870 Althea in C’Bad (REO) just listed at $344.9k.
doug s. | April 25th, 2008 at 6:06 pm$329K
greenlander | April 25th, 2008 at 6:22 pmLists at 349,000. Sells at 319,000
Adesigar | April 25th, 2008 at 6:28 pm429,000
sue | April 25th, 2008 at 6:48 pm$374,900. That was my guess before seeing the other comments. Seems like popular territory. 20% under FC owed seems a reasonable listing. $175/sf is also a magic number. Whaat is the rent? I’m guessing $2100 which would be 175x an another resistance point. From a pure investment perspective nothing more than 140x is even worth considering but this is getting close for the owner occupier.
BTW,I also was going to tease with the "second place; two sets of tickets" joke. If only you had an NBA team you could have a shot at some of Boston’s old records.
Rob Dawg | April 25th, 2008 at 6:50 pm$500k, we already hit bottom according to the NAR.
Genius | April 25th, 2008 at 6:55 pmGreenlander already took mine at 329K.
It needs a bit of work, so I’ll say 328K, ok?
Chuck Ponzi
Chuck Ponzi | April 25th, 2008 at 6:59 pm$375,001
PoorHouse | April 25th, 2008 at 7:05 pmLP:$335K
Al in IC | April 25th, 2008 at 7:23 pm$289K…396 Leeward Ct @ $339K
SurferNate | April 25th, 2008 at 8:22 pmList at $363k, sale after two $25k price drops at $319k
Congrats on the expansion!
FreedomCM | April 25th, 2008 at 9:44 pm$359K. Looks like it needs work.
Dwip | April 25th, 2008 at 10:32 pm$2.6M Buy now or be priced out forever!
Just kidding… I’d go with $429k, though I think a home like this should and will eventually sell for $299k.
RSF_Renter | April 25th, 2008 at 11:24 pmCan I change my guess? $220,900, and this time I’m serious.
Genius | April 25th, 2008 at 11:27 pmAre negative numbers allowed? Can you say, "if you pay me $10,000 I’ll take title to this POS and get it off your hands."
greenlander | April 25th, 2008 at 11:54 pm299,999.99 and 9/10
Padres need to bring back Tony G (if he drops a "few" pounds…)
Smithers | April 26th, 2008 at 12:11 am$335,000.
calwatch | April 26th, 2008 at 1:07 amBring back Tony G
They could bring him back to coach. Bud is a nice guy and all, but we need inspiration, enthusiasm, and somebody for the fans to get fired up about.
Tony is 23-17 with the Aztecs currently, and that’s with a tough schedule. Nine of those games were against teams ranked in the Top 25 in the country.
Great story in today’s U-T about Erik Castro, from Fallbrook HS. I know his family pretty good, and went to a Fallbrook playoff game two years ago. He hit a bomb to dead center field that not only cleared the fence, it landed on the roof of the wood shop about 50 ft. beyond, with a thud that could be heard for miles.
He went to U of A his freshman year, and transferred this year to play for Tony. When the number one catcher goes down with injury, Erik takes over, even though he has never played there before.
Link to U-T story
I think it says a lot that the kids want to play hard for Tony. I think the Padres should bring up their good young players from the minor leagues, and let Tony coach them. Look at Arizona, they are the youngest team the baseball and they have the best record.
OK, back to the regular program….
Jim the Realtor | April 26th, 2008 at 2:13 am$348K
Tyrone | April 26th, 2008 at 2:50 amI’ve been reading your great blog for a long time – great to see you doing well!
BDiego | April 26th, 2008 at 4:14 am$367K
Nathan | April 26th, 2008 at 7:03 amYou were working the REO angle for awhile, what was the final thing to get things moving? Finally got personal contact with an Asset Manager?
PingPong | April 26th, 2008 at 7:22 am$431,000
Go Pads!
shelly | April 26th, 2008 at 7:27 am$319K, sells for $294.5K.
Good luck!
CA renter | April 26th, 2008 at 8:15 am$339,500.00 LP
$309,000.00 SP
Horse Racing Man | April 26th, 2008 at 4:06 pmhere in vegas, the list price is being put low on a bunch of bank owned houses to get interest buzzing and create multiple offers. I say $297,500.
sloshr | April 26th, 2008 at 4:08 pm$367,500.
daveg | April 26th, 2008 at 6:18 pmI’d say CW wants a list price around $365K, but will indicate that they’ll settle for $345K. I would guess $321K at the selling price.
I haven’t seen CW pricing right yet. I have seen them taking less than LP, however.
I don’t think a non-distressed comp is much of a comp. Especially when sold as-is with no maintenance.
incessant_din | April 27th, 2008 at 4:49 pm$371,000
CBMark | April 27th, 2008 at 10:30 pmEasily something like 333k.
JMA | April 28th, 2008 at 10:29 amI am feeling cocky with my earlier win!
I predict CFC will "agree" to you pricing it at $379K despite you telling them that if they want to move it quickly they should price it at $339K. However, even you will slightly over-estimate and will have to lower it 2-3 times with a final sales price of $310,000 and with a cash back of $6K plus cover at least some, if not all, of the closing costs.
If I am only right about the price, OCVulture should have the tickets as he picked $310K before me. But if I am right about the additional details above, he should probably share…the three of us can go.
But I will go one step further.
Keith Rettig | April 28th, 2008 at 11:16 amThe purchaser will attempt to flip the property after the barest of repairs ($8,500). If McCain wins the presidency, the investor will fail to cover his mortgage payment by December and the property will be foreclosed on again next year. If Barack or Clinton wins the presidency, the investor will try to sell but after a short wait will settle and rent the property under the belief that things will get better late next year.