Carlsbad REO Contest

Written by Jim the Realtor

June 3, 2014

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:

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

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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!

29 Comments

  1. shadash

    480K is my guess

  2. livinincali

    I’d say $470K plus the premium so buyers out of pocket is $493.5K.

  3. Susie

    $486K
    (Love to take my “Rockies” son to the game, Jim.) Every time he’s taken his sister or me to Coors Field, the Rockies have lost! So if I win the contest, the Padres can chalk up a “W”…

  4. swm

    I have heard numerous stories of Auctions.com properties not going through. The `winning bid` is rejected by the bank. I will say $0 – no sale.

  5. Jim the Realtor

    Agreed, it is likely that they won’t hit the reserve price with all the hurdles. But the contest is ‘closest to the sales price’, which implies a sale.

    New rule: If it doesn’t sell due to the reserve price not being met, then I will tack on 5% to the highest bid and the closest guess to that number will win the tickets.

    The auction ends on Jun 9, 2014 at 02:00 PM PT, and if there is a flurry a bids at the last minute like on ebay, then I’ll make a judgement call on what the highest bid was if it is unclear.

  6. swm

    Padres are at 26-32, a winning percentage of .4482758

    $448,276

    P.S. Sorry, not trying to be difficult.

  7. Jim the Realtor

    That’s as good a way of guessing the price on this one as any!

  8. kathy winter

    Sale Price $ 489,000

  9. looking

    It won’t hit the reserve but top bid will be $450K + 5%

  10. nado

    $534500 is my guess. I have tried to buy homes from auction.com in vegas- it is difficult. Mostly these are nationstar or B of A homes.

  11. Bassman

    $511K sales price (does not include the 5% add-on fee)

  12. Michael

    529,500 sales price

  13. Doughboy

    Five Hundred Thousand Dollars

  14. JaytheRealtorWannabe

    I want to know what lawyer that homeowner used to stay rent free in that house since 2011 (and likely many years before that!!!) Is this a new freeloading record?

    My guess is $475,000

  15. Sol

    I’m guessing $525,000.

  16. Jim the Realtor

    The first default was filed in 2009 so it could be a 5-year free ride – plus still to come, cash-for-keys!

  17. Lurker

    Not playing (not in SoCal) but my guess would be $435k before premium and no sale.

    It’s a decent lot for flippers/retail investors. Schools are good, yard is ok and facing south, neighbors are down-slope, etc. Repo’ed and remod’ed, it may fetch in the $620-680k range (for comps, spiffed up 7938 Represa is not selling at $730k).

    But the sale is mightily impaired. Built 1977. Still occupied. Same occupant for the past 20 years. Sale as is and no visits. Presumably light maintenance at best for the past 5 years, so degraded since last attempt in 2011.

    Expect heavy duty remodeling before putting it back on the market. 15% for remod plus sweat equity, margins and buffers. It will take at least a 30% discount to motivate a buyer. I can’t see the bank swallowing that. It will take some more beating before they give up.

  18. freedomcm

    I want to know what lawyer that homeowner used to stay rent free in that house since 2011 (and likely many years before that!!!) Is this a new freeloading record?

    What makes you think that it is the owner who has occupied it for 5 years? Probably a tenant who dutifully paid their rent, while the “owner” was pocketing it for three years, and is now paying the bank.

    capitalism at its finest!

    That said, $526,400 plus 5%, so $552,720

  19. Jennifer

    My guess is 507,000

  20. blucore

    $541,000, plus the 5% juice, so $568,050

  21. Recordsclerk

    468K is my guess. The problem is the cash investers may not meet reserve due to 5% buyer premium. Standard buyer may shy away from this auction due to title fears.

  22. bode

    465,000 plus the premium. What a wacky way to sell.

  23. canuck

    My guess is $437k + 5% premium

  24. Myriad

    Sorry for the late guess, busy all week.
    $495,500. +5% = $520,275

  25. andrewa

    My guess is with the difficulties and unknowns it will be $407k occupied repo’s go for MUCH less than the equivalent standard sale. If I win give the prize to the next nearest as I live far away.

  26. Jim the Realtor

    Current bid is $475,000 and they added that bid increments are $25,000. Dang, that spoils the contest.

  27. Jim the Realtor

    Also note that $475,000 doesn’t reach the reserve bid – they are nuts.

  28. Jim the Realtor

    Auction price bid up to $644,250 and still hasn’t hit the reserve – what is the bank thinking???

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Jim Klinge
Klinge Realty Group

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