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Carlsbad
(760) 434-5000

Carmel Valley
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jim@jimklinge.com


Category Archive: ‘REOs for sale’

REO-Auction Contest Results

My high school baseball coach used to say,

“I don’t believe anything I hear, and only half of what I see!”

In our latest contest, readers submitted their guess at the highest bid + 5% buyer’s premium for this property in SE Carlsbad:

http://www.bubbleinfo.com/2014/06/03/carlsbad-reo-contest-2/

lamaca4

The auction included an outrageous set of conditions, which many thought would drive down the price to compensate.  They included:

  1. The 5% buyer’s premium tacked onto the highest bid.
  2. No showings.
  3. Tenant-occupied, and buyer was responsible for evicting.
  4. Cash only.
  5. No buyer’s agent commission paid.
  6. Not in the MLS.
  7. 5% deposit required upon winning.
  8. Reserve price.

They conducted the auction online, which gave participants the convenience of bidding from their couch at home. It should have allowed bidders the chance to double-check the comps as the auction wore on – because every time a new bid was made, they extended the ending by 1-2 minutes.

Those checking the comps would have seen that in the heat of the frenzy last year, three of this identical model sold for $638,000, $653,000 and $679,000.  Then in October this sale with nice view closed for $705,500, which was the highest price since May, 2007:

http://www.sdlookup.com/MLS-130050274-2704_La_Duela_Ln_Carlsbad_CA_92009

The bank foreclosed in 2011, and nobody wanted it then for $459,088.  The opening bid this week was $325,000, and once the auction started the initial bid increment was $25,000.

Most of our readers guessed it would sell in the $400,000s, which would be an adequate buffer to evict and remodel.

Look what happened today:

lamaca42

AND IT DIDN’T HIT THE RESERVE PRICE!!!!!!

Somebody was willing to pay almost $200,000 more than the bank didn’t get in 2011, and that wasn’t enough to reach the reserve price?  Hopefully the bank will come to their senses and reconsider before that bidder changes their mind.  Counting the 5% buyer’s premium, the highest bid was $678,038!

Our closest and winning guess was $568,050, and submitted by blucore – congratulations!

Posted by on Jun 9, 2014 in Auctions, Contests, REOs, REOs for sale, Unbelieveable | 15 comments

Carlsbad REO Contest

Usually WaMu would have a REO agent do the normal routine – vacate, paint, and then list the home on the open market for just under retail.

The bank has already foreclosed – but instead selling of the old-fashioned way, they chose to make it an auction.com exclusive listing.

The house is tenant-occupied and can’t be shown, the buyer is responsible for evicting the tenant, plus the buyer has to pay a 5% premium but there’s no buyer-broker commission is offered (it’s not on the MLS) – and oh, by the way, you have to pay cash:

lamaca4

lamaca5

The opening bid is 42% of the previous value, which looks attractive:

lamaca3

P.S. This was foreclosed in 2011 – the trustee sale’s price that nobody wanted to pay then was $459,088.

What will the sales price be? (assuming the reserve price is reached)

The closest guesser will get 4 tickets to Padres vs Rockies on August 13th!

Posted by on Jun 3, 2014 in Contests, REOs Coming to Market, REOs for sale | 29 comments

Million-Dollar Tract House

We are approaching the previous-peak pricing in most areas, and you know it’s hopping when standard tract houses in Carlsbad with few upgrades are listing for $1,000,000.

This house sold new for $1,004,500 in 2005, and for $1,180,000 in 2007 and that sale was 95% financed:

Posted by on May 20, 2013 in Bubbleinfo TV, REOs for sale | 0 comments

REO-Auction Craptacular

Banks are constantly tweaking their foreclosure package, thinking it will provide more benefits. In the confidential remarks:

This property is under Auction Terms. All bids are to be submitted through auction.com. This property is subject to a 5% buyer’s premium.

Here is the link:

http://www.auction.com./California/residential-auction-asset/1455959-3818-6809-JADE-LN-CARLSBAD-CA-92009-O364

It has a reserve price, the buyer pays the 5% premium on top of the sales price, the on-line bidding doesn’t start until May 30th, and the opening bid is $450,000.

The list price is $939,750 in the MLS:

Posted by on May 10, 2013 in Auctions, Bubbleinfo TV, REOs for sale | 9 comments

Distressed-Listings Decline 66%

Why would people list their home as a short-sale?

Because their lender is applying pressure to either make payments, short-sale, or be foreclosed. At least that is the old-fashioned way of banking.

It’s possible that, after months or years of delinquency, some might start making their payments again if they receive that magical loan-mod/principal reduction package. I just haven’t met anybody who has.

Maybe I’m a skeptic, but these stats make it appear that the banks aren’t applying much pressure – distressed listings are 1/3 of last year’s total:

NSDCC Detached-Home Listings, First Quarter

Listing Type 2012 2013
REO
56
20
Short-Sales
125
42
Regular
1,089
1,216
Totals
1,270
1,278

It might make sense for banks to be lenient in depressed areas where sales and prices are struggling, but around here we are starved for inventory. The policy is working so well that it may last a long time – the ultimate can-kicker!

San Diego County Filings

Meanwhile, another 85 new listings hit the MLS since our last reading, and we had 81 new pendings with a few cancelled/withdrawns – demand is raging:

Date NSDCC Active Listings Avg. LP $$/sf
Jan 14
649
$722/sf
Feb 4
667
$716/sf
Feb 10
679
$713/sf
Feb 25
678
$719/sf
March 6
727
$703/sf
March 11
744
$698/sf
March 16
746
$703/sf
March 23
755
$712/sf
March 31
752
$717/sf
April 5
780
$704/sf
April 11
780
$710/sf

This is the most important indicator to watch – if the active inventory starts to grow, it means buyers are backing off.

Posted by on Apr 11, 2013 in Inventory, REO Inventory, REOs for sale, Shadow Inventory, Strategic Defaults | 4 comments

Sizzling Penasquitos

As of tonight, this REO is still marked as an active listing. Yet the agent responded with the typical supreme confidence that permeates the business these days.

He sent this via a text message, “Sorry, but you’re way too late to this party.  We had 30 offers. The bank has selected one.”

It’s been on the market seven days.

Posted by on Mar 5, 2013 in Bubbleinfo TV, REOs for sale | 7 comments