Update: Kh finds the fine print. "Must Be Sold" defined:
"Reserve Price. All Properties have a Reserve Price, meaning the Seller of each Property has established an unpublished, minimum selling price. The starting bid is not the Reserve Price. In order to become the Winning Bidder for a Property, a Bidder must meet or exceed the Reserve Price and have the highest bid, and such highest bid must be accepted by the Seller (see “Subject to Confirmation” section below). Except where prohibited by law, the Auctioneer may open bidding on any Property by placing a bid on behalf of the Seller and may further bid on behalf of the Seller, up to the amount of the Reserve Price, by placing successive or consecutive bids for a Property, or by placing bids in response to other bidders. If no bidders meet the Reserve Price, the Seller is under no obligation to sell the Property"
23 comments:
Don't give me that Reserve Auction, high starting bid, right to refuse baloney.
Start the bidding low, give everyone a chance to make some money, and I'll be there with my checkbook!!!!
Who knows, I might get carried away and pay too much.
I didn't see any refuse cause, there seems to be low starting bid.
Who knows if a bank rep will be there uping the bids.
I thinking about going just to check it out.
You can download a spreadsheet of all listing for a quick view.
These seem to be good deals if they go for close to the opening bid.
7300 GRACE STREET FAIRFAX
SQF 5058
Starting bid: $339,000
Valued to: (highest tax assesment???) $950,000
10016 ERION COURT
BOWIE
4272
$289,000
$780,000
43844 CHURCHILL GLEN DR
CHANTILLY 4116
$319,000
$799,900
11340 ANDREW LN
FAIRFAX
3812
$329,000
$770,000
8726 WILD PRAIRIE ROSE WAY
LORTON
3812
$319,000
$789,370
"I thinking about going just to check it out."
Thanks.
Those numbers look good.
If it is a low starting bid and no right to refuse, and those are the starting prices, then everyone had better line up their ducks.
Come on, lets go.
Just checked the site, terms and conditions. This is chickensh*t.
"Reserve Price. All Properties have a Reserve Price, meaning the Seller of each Property has established an unpublished, minimum selling price. The starting bid is not the Reserve Price. In order to become the Winning Bidder for a Property, a Bidder must meet or exceed the Reserve Price and have the highest bid, and such highest bid must be accepted by the Seller (see “Subject to Confirmation” section below). Except where prohibited by law, the Auctioneer may open bidding on any Property by placing a bid on behalf of the Seller and may further bid on behalf of the Seller, up to the amount of the Reserve Price, by placing successive or consecutive bids for a Property, or by placing bids in response to other bidders. If no bidders meet the Reserve Price, the Seller is under no obligation to sell the Property"
What baloney. I want to see them go balls to the wall. I will bid against any legitimate bidders but if it's my time and my money, I won't play with shills.
kh,
Good find.
Reminds me a little of Jim Klinge's post: Auction Dud
This sounds like it is more publicity stunt than anything else.
Eventually sellers will accept that the bubble is gone and that if they want to sell they are going to have to be willing to sell for less.
Until then I expect them to play all kinds of games and hold on to a lot of houses...
Didn't see the fine print ...
That is B.S.
"Eventually sellers will accept that the bubble is gone and that if they want to sell they are going to have to be willing to sell for less."
As the official Lance Sockpuppet Suspect(tm) I'm not certain that prices will fall.
Right Steve, they are playing silly, silly games.
Like I said, go balls to the wall (I think it's a NASCAR term which refers to getting your racing tires right up to the retaining wall on tricky turns.)
If they were doing a starting bid at $339K for a $950K place, I'd be there with my NVHBF T-shirt and certified check for the deposit.
$339K is way out of my budget but I'd check out the places around $150K and would be prepared to bid aggressively up to my limit.
I am not taking my time to tour 4 or 5 houses, take pictures, do the inspection, discuss the pro's and con's with my group for a sham action.
If the deals looked really good, I'd get the cash together somehow. So would many others.
How hard is it for them to understand that?
I'm not going to burn my time and have them say, "Sorry, that's not enough, the secret selling price is much higher."
As the Lance sockpuppet, I'm pretty certain that in the excitement of a real, straight-up action, that prices would rise high. Probably not to 2005 assessments but dozens of investors would ensure that nothing sells too low.
After the dust settles....
"sob, we lost the house."
"woo-hoo, we can fix it up and put gramps and granny in it, when they're gone, we'll sell and add it to our retirement money."
"Slap some paint in it, granite, stainless steel, and let's flip!"
"The kids will finally have their own room."
The real advantage is that with that many units on the block, we'd know what the real valuations are.
Just looked at this place. What a dump.
11692 Battle Ridge Dr Remington
Square Footage: 1232
Starting Bid: $99,000
Previously Valued To: $267,100
http://tinyurl.com/ypprbe
http://tinyurl.com/2axqgh
http://tinyurl.com/yummaz
http://tinyurl.com/2h4jm7
That place isn't worth much more than the starting bid.
"Just looked at this place. What a dump. "
Thanks. Did you check out the interior? Looks prefab or a factory house.
I like the size of the lot, has a driveway too.
The sellers have got to get over themselves. I think they'd be surprised at how high people will bid in a fair auction.
Balls to the wall
Turns out it's not a NASCAR expression for tires near the retaining wall, it's either from aviation or diesel or steam engines.
" On airplanes, the throttle control handles and the fuel mixture are often topped with grips that are ball shaped, thus referring to pilots as "balls." If you push the ball forward close to the front wall of the cockpit your result would be a top speed."
"There is a hydraulic governor, which maintains the diesel at constant speed regardless of the load on the generator. Inside the governor, round counterweights are attached to a vertical drive shaft. The weights (balls) are on hinged arms. As the engine spins, the drive shaft spins and slings the balls outward toward the walls of the governor housing. The faster the engine turns, the closer the balls get to the wall, i.e., engine at high speed, balls to the wall. "
Either way, the sellers need to set the auctions up so that it's mano-a-mano. No-shills, no-reserve, and no-refusal.
Highest bid takes it.
Anything less is BS.
I saw a couple of houses in Manassas that are taking part in this. They had been for sale by the banks that own them forever and ever. At first I got excited, thinking "well now they'll definitely sell, at least." But after reading the terms, I guess not.
"But after reading the terms, I guess not."
Since you are looking anyway, do it. Attend the auction. It will cost you a small fee to have your check "certified".
Decide ahead of time what you will pay. If it's $300K, reduce that by the "bidders fee" and leave some for closing costs, etc.
On a $300K house, a safe max might be $270K. Write that down on your sheet. Come with a clipboard and a couple pens for making notes.
When you bid, bid aggressively, that disheartens the other legitimate bidders but it does juice the shills.
100K, 110K, 120K, Lets Go! 130K. up and up. Act excited.
180K, 190K, 200K. Come on, I'm here to buy a house.
When you get within 25% of your max, suddenly stop. That will shake the shills. Let it go once, twice, then reluctantly, tentatively bid again.
220K, 230K, The lady? Do I hear 230K from the lady?
If your spouse is there, have him shake his head, No. No. No. Pretend to argue with him as if you can't go any further but maybe.
Show him spreadsheets, point to the numbers.
Maybe let that one go even if it's below your max. If you do that, nod your head to him and when the auctioneer points to you, shake your head no.
A shill probably won that one.
The jokes on them.
Um... dare I ask how many houses you have bought at auction KH?
Harriet,
I've noticed that the Wells Fargo home afford ability index for Washington DC has dramatically changed over the last 18 months.
It isn't by income increase... That was only about 5%. It was by the 70k price drop!
http://www.nahb.org/page.aspx/category/sectionID=135
I picked the later of the two 2/19/08 spreadsheets.
We're at 43% afford ability. It will go back up to ~80%. :)
Got Popcorn?
Neil
Neil ... how many times do we need to remind you that (1) West Virginia is not Washington DC and (2) the drops have been right were everyone expected them to be (i.e., new developments, condos, and some transitional areas). And the drops there have been big (up to 15%). Most areas are doing fine ... either holding their value or going up by at least 15% in areas such as Alexandria and North West. But then again, you're in Orange County California and haven't a clue as to where is where here. I still can't get out of my mind the time you referred to "core DC" ... There's no such place --- we've never had such an animal. This is an Eastern city ... it never developed concentrically like a western city might. Incidentally, why do you even care what happens in DC? Do you have a wish of moving here someday? Are you on the bankroll of Realtors who want to see people selling their homes (even if at a loss)? I've asked this question before, and you have yet to ansere
Landlord Lance said, "going up by at least 15% in areas such as Alexandria and North West."
My Alexandria place has gone up about 1 or 2% a year for the last two years. Some houses, the 3/2, 4/2 SFHs may gone up more but I have a very small place.
Over the last 3 years, since 2005, yeah, my appreciation was about 15% total for 3 years
I have a pal who lives 2 miles away, near the Braddock Rd Metro. His place is still rocketing up in value, would not surprise me if he saw +15% last year. He has a small place too. Small=affordable in my HH mind.
I'm walking distance, on warm spring evenings, from the Del Ray Restaurants and bars.
There is a QOL premium.
Remember everyone... only lance gets to define what consists of DC.
Anywhere that shows a decline obviously isn't part of Lance's DC.
"This is an Eastern city ... it never developed concentrically like a western city might."
Lance... DC is a SOUTHERN city as far as how it has developed. IT most certainly did develop in rings as most of the newer growth cities did.
Are you really going to try to argue differently? There is a great deal of commerce in northern virginia, far more than there is in the District at this point. You can try to bury your head in the sand about this... but at this point Fairfax county and out is where the real growth is.
I went and looked at one of the auction properties on Saturday. It was 7110 Falcon in Annandale.
The property sold for $695,000 in 2006 and has an opening bid of $199,000 in the upcoming auction.
http://www.ushomeauction.com/property.php?auctionID=H-018&itemID=12045&venueId=79&start=0
The house is a 1960 split level with a poor quality addition on the back that makes it a 5 bedroom. I used to live in a very similar house in Annandale and I know the area well.
In all likelihood the bank that owns the house has set the opening bid well below what it believes the market value is to generate a lot of interest in the property.
What's ironic about that is that I think the opening bid is actually not a lowball amount, but is consistent with what the intrinsic value really is. If anyone pays more, they are likely overpaying for the house.
It will interesting to see whether reserves are met.
"I went and looked at one of the auction properties on Saturday. It was 7110 Falcon in Annandale."
Thank you for your research and comments.
"It will interesting to see whether reserves are met."
My guess is no. I hate reserve auctions.
Did you see the EOS 21 Auction?
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