A reader noted that yesterday was an active day for trustee sales. But unlike last month, when I got snookered into thinking something was afoot, I went right to the auction.com website.
Yep, yesterday they conducted their latest installment of ‘trustee sales by ballroom auction’ – link here.
I can relate to what they are going through. Bank of America and others are dumping some of their worst properties on them – only two of the 117 properties were over $400,000, and the majority were under $200,000. There was also plenty of postponements. Of the 117 on the list, only 30 were sold – they postponed 58, and cancelled 29.
If you are looking to pay cash for cheap properties, and don’t mind buying without title insurance and inspections plus evicting the occupants, this might be for you. At least the parking is easier, and you won’t be tripping over the bums and hobos downtown.
But it is run by the same REDC auction house that has been exposed here previously.
Overall yesterday there were 68 trustee sales conducted throughout the county, with 38 properties being purchased by 3rd parties, and 30 going back-to-bene. It brings October’s total up to 672 trustee sales, with three days to go. In September there were 754 successful trustee sales.
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Jim,
This is not related to this topic, but I’ve been looking to buy a place in Carlsbad in the range of 650-800k and notice that in the last few months in the community (Water’s End) there seems to be a lot of churning going on. Is there a reason for that? Just estimating but it seems in the few months 20+ odd homes have sold, 10+ active listings and seems like every other day there’s a new one too.
Those for sale have quirks about them, but pricing has come down nicely yet they still aren’t selling. I haven’t heard of any Love Canal or other cause, I think it is just a coincidence.
Can I be your realtor?
the bubble is still going on…
http://caliscreaming.com/
Thanks for clearing that up.
I was at the auction yesterday. I’d rather stick with the downtown or El Cajon courthouses. The REDC auctions are done in a totally different style than the courthouse steps; a style that gets to the max bid sooner than the common $100 increments found at the courthouse auctions. However, even seasoned buyers find themselves confused from time to time with the ultra fast, jibberish the auctioneer is spewing. This resulted in at least 2 bidders trying to bid on top of their already winning bid. This is followed by patronizing comments by the auctioneer saying he won’t let them bid their own bid up. The way he staggers between what the current high bid is, and the figure he hopes the next bid will be leads to confusion as well. The REDC style is less intimidating than standing face to face with your competitors at the courthouse battling over $1000, $500 or $100 increments but, I feel the REDC style drives the winning bids up slightly higher than the auctions on the steps. Regardless, I have not bought an auction property at either location in months as the LLC’s and various entities buying the auction properties are paying well beyond my top price. Which, as you mentioned needs to take into account cash for keys, unexpected findings post fact, etc… . The heavy hitters must be buying to hold because in many cases they are paying 80%-90% of retail, after-repaired-value; even for tenant occupied homes. Go figure.
Looking – I don’t think there’s any more churn in WE than usual. According to Redfin, in the last 6 months, 11 have sold there. In the last 3 months, 5 sold. In last month, 0. So, that’s about 2 a month, but slowing down more recently, probably due to seasonal issues. For the year, 15 have sold, so overall that’s a little better than 1 a month on average, across all the different seasons of the year.
What you might be seeing is lots of listings that go away and keep coming back. But it’s the same houses over and over. And then some go off market, but haven’t sold. That gives the appearance of a lot more activity than there really is.
However, prices have definitely dropped for the solds. No question about that.
PS to Looking – you definitely want Jim for your realtor. You can’t do better and you could do so much worse.
The one that got away yesterday… 7108 Mimosa Drive, 92011 for $400k at the auction in El Cajon. Maybe someone can correct me but I think it was a last minute add on to that auction.? Should be a nice profit on the resale.
Looking, seriously, feel free to ask advice, but you should be using the realtor that you are asking advice from.