The auction format is gaining ground – here’s the fourth high-ender this company has done in the Rancho Santa Fe area with no reserve:
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
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They must have a lot of confidence that there are a lot of Rich well-heeled buyers out there.
Very few want a small boat if they can afford a big boat (got to do something with that money).
The auction company will benefit from their hot winning streak. If one of these stumbles a bit, other potential sellers will become leery.
What constitutes a stumble? They had a “previously listed at” price of 35 million on Casa del Sol, and a pre-auction estimate of 24 million.
What did it sell for? They haven’t exactly been trumpeting the blockbuster gavel price and it’s been nearly a month.
What’s the word, Jim?
Looks like some lower priced homes are also attempting the auction format: http://www.redfin.com/CA/San-Diego/8183-Casa-Blanca-Pl-92126/home/4582228
Great trend. Hope the auctions in some form or another continue to gather steam.
Jim, curious if you think RSF is losing some of its former glory and luster? To be sure, still pricy, but some of these drops are interesting:
Example: 3.5M in 2005 down to 2.4 now:
http://www.sdlookup.com/MLS-140011530-7849_Muirfield_Way_Rancho_Santa_Fe_CA_92067
You know most of RSF, at least “the Ranch” does not have high speed internet or cable. Dark ages. In the new world, that just doesn’t work. The old folks don’t see what the big deal is but lament why new money (the working rich) are skipping the Ranch for the newer developments. Not to mention that new money might feel a little more sheepish about the $2000 a month water bill — not because of the money, but the piggish statement it makes. Hard to keep your environmental stripes driving around the tesla with the carbon footprint these houses command.
What’s the word, Jim?
The big auction hasn’t closed yet, but I’m sticking to my $11 million guess. It has no view, and it feels like you are down in a hole.
But it is a one-off – a very unusual property with lots of crazy extras. If it doesn’t go out at a big price, other potential sellers who saw it won’t be fazed.
We will see if this new auction garners a strong demand & price. It’s not the flashy high-end spectacular – it’s just another house in RSF.
It’s been for sale since last summer on the range $5,750,000 – $6,200,000 with no takers.
Once buyers factor in the ‘buyer’s premium’ of 10%, the eventual price could stumble down to $3 million or so, which could make other normal sellers leery of trying the auction process. It would seem they “gave it away’, when the other variables would indicate otherwise.
Jim, curious if you think RSF is losing some of its former glory and luster?
The Ranch has been losing luster over the last ten years as other newer and more affordable options have been built nearby. As elbarcosr mentioned, the Crosby, Santaluz, and CV are luring buyers young and old away from the Ranch, where not only are you struggling to get high-speed internet but you are also on propane and septic – which sounds barbaric to those unfamiliar.
If you are spending less than $5 million in the Covenant, you are buying a house that needs work, and once you get started the cost will begin at $500,000 and will hit seven figures quickly.
But to go back to your link and the house sold in RSF Farms, that is an inferior location. It’s not in “The Ranch”, and not close – it’s more like Baja Carmel Valley. I checked out the owner when that went down, and he is a successful lawyer and it looked like a vacation home that must have been excess property.
He paid $3.5 in 2005, and since then the competition has been fierce in the surrounding areas. Just in the last 12 months, there have been 150 sales between $2.0 and $3.5 million in 92067, 92127, and 92130. There are 101 active listings now!
I am not an advocate for RSF or anything, but there are high speed wireless and micro wave internet options that are becoming very reasonable (less than $100.00 a month for unlimited use).
Which will work just fine unless you are planning on operating a server farm or something.
Even satellite internet will work for most people.
Yes, and a good example to go along with propane and septic.
Even though all three are very suitable alternatives, they are different than city slickers are used to.
If you’re knocking down a million a year and reviewing all the places to buy a house (RSF Covenant, Fairbanks, Crosby, Santaluz, CV, etc.), and your wife turns to you and says, “I don’t like the idea of storing my poop in a tank in the backyard”, you’re probably not going to buy in the Ranch.
Re: del Sol auction, Jim, your guess is identical to the rumored sales price that was floating around the day after. Man, if my casita sold for 40% of it’s pre-auction estimate, that would leave a mark.
(Hope this doesn’t double post; tech difficulties/native idiocy on my end.)
The actual sales price is known to anyone who was there, or saw it on the live feed. My guess was off the top of my head, and if it ends up being close, I’ll be impressed! 😆
$3-$3.5mm sounds like the right price for the latest auction house. That place seems dark inside with all the stained wood on the floors and ceilings. The sloped lot with the pool on the basement level doesn’t help either. A better version of that house wouldn’t cost more than $2mm to build these days.
When we were looking to buy a lot in 2013, Santaluz and the Crosby seemed like a much better value than anything in the Covenant. We never dug deep enough to uncover the septic and internet issues. My wife will laugh when she hears that! We chose the Crosby because we have preschoolers and the elementary school (Solana Santa Fe) is much less crowded than the one in Santaluz.
The unfortunate part for the auction company is that they are doing a fine job of price discovery and the auction format will deliver top dollar on that day.
Though they knew it wasn’t selling for 6 they changed the price to the range $10,000 to $8,000,000. If it closes for 3-something it is the accurate value but it will look like they gave it away.