how is the activity an these auctions?
@E-man, @ptieman
could you guys share with us what you see?
thanks
what is the scene at court-house auctions?
By permanent_marker Follow Thu, 10 May 2012, 10:32am 3,156 views 19 comments
In Mountain View CA 94041
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Sigh..................... Investors are buying up everything. Sometimes they pay retail prices. 90% of FMV is typical nowaday. Ironically, these guys can ask for 110% to 115% of the FMV on their flips, and they do get it. It's a classic case of buy high and sell higher.
I'm done with the courthouse auctions for now. I can buy properties cheaper through short sales, and there is no risks, no eviction, and no cash for keys involved. My last two purchases were both short sales. Both were bought for below auction prices. My last purchase at the courthouse steps was in January of this year.
I was gonna go out there this week to bid on a property in Cupertino, but it got postponed to June. In short, if you're not willing to compete, don't even bother to show up. There are about 30 to 40 parties at the steps on almost every given day.
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This window is essentially closed. I bought my last auction property in October 2011 and now it's just crazy. I haven't gone since February.
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E-man says
I caught that Storage Wars show, and their mentality is...
"Well there's nothing in this storage unit I'm interested in, but I'll bid it up to screw the other guy over that really wants it."
We're a petty wretched nation, I say we reinstate the potential of a good ole fashioned Assbeating, with out the possibility of it becoming a CNN front page story, and 5 years of anger management and probation. There's a lot to be said for respect for other people.
Or everyone's highest bid after an auction, should have to be paid into escrow and left there for up to 30 days. That would put a stop to clowns that have no intention of actually wanting to win, other than drive the price up for the other assholes.
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Captain,
You may want to consider taking your own advice. Your speaking up removed all doubts. :)
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ptiemann says
Seriously? Guys going to the auctions expect that?
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ptiemann says
I am not familiar with Sunnyvale market but seriously how much can you expect to appreciate in that short time period of 12 months?
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CaptainShuddup says
They don't do that just to be assholes. The mentality is if someone has X dollars and you make them spend almost all their money on a storage unit / property, they will have less money to compete with you on future storage units / properties.
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CaptainShuddup says
The logic here is if I get the other guy to over spend on this unit, they may not have enough money to bid if a really good unit comes up. This may work with normal buyers where they don't have a lot of money to throw around, but Jarrod's net worth is over 700k, Darrell and Dave several million and Barry Weiss has more money than all of them combined. making a competitor over pay by a couple of hundred dollars isn't going to break the bank on any of them.
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bubblesitter says
Question, they are not really held on the court house steps are they? It would seem to make more sense to hold them inside the building.
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TechGromit says
Yes they really are held on the courthouse steps, at least for Contra Costa. The courthouse is in Martinez and the auction guy stands at the top while the buyers are arranged up and down the steps.
Recently there have been a few auctions held at the Concord Hilton, but only once or twice a month.
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ptiemann says
Do you think it's possible there are less savvy investors coming in, or even "regular folks" trying to get what they think is a deal on an owner-occupied for themselves? I know there are folks that talk about this as a way to beat the market - I generally just think to myself, "bless their hearts".
At the San Mateo courthouse I have seen two things lately: more people who don't look to me like they are the usual investor suspects, and Occupy protesters.
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Maine/NH not seeing courthouse auctions. Auctions usually take place at the end of the driveway of the house. Most all properties are underwater owing more than what they are worth. Bank always buys it back for what is owed. So buying at auction isn't really worth it.
Sample Auction:
Home Value: $150,000
Mortgage owed: $250,000
Sold to highest bidder, the bank, for $250,000
Its easier to let the house rot another year or two, knock another $100,000 off the price and then place a bid once it hits MLS.
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ptiemann says
It will be interesting to see how that is going to play out. From what I hear you can still get a really good deal at the Auction House.
Some folks simply borrow at high interest rate to buy at AH, buy and refi right after.
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FortWayne says
That's no longer the case. We only go out there to hang out and drink coffee now. There is nothing that makes any sense to buy out there. Either the market has overshot to the downside, hit the inflection point, and is bouncing back to the equilibrium, or....................................
It's a classic case of buy high & sell higher at the steps. Most buyers are ecstatic to get into contract now. It feels like 2004 to 2005 all over again in Santa Clara County. Inventory is low, multiple offers, etc........ Appraisal has been an issue & will continue to be an issue for the near foreseeable future due to rapid appreciation.
I looked at the appraisal reports on a couple of properties I closed on in the last couple of months. I couldn't believe the appraisers would stick their neck out, or is it a fact?
Inventory is decreasing year over year.
Days on market is decreasing year over year
Value is increasing year over year.
I was like "WOW". These guys' bosses won't like it when looking at their appraisal report.
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permanent_marker says
Gathering place for bottom feeders and then come to pat.net and complain about being outbid. :)
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bubblesitter says
Oh please, you are a "bottom feeder" in waiting yourself. Circling the dying animal on a daily basis waiting to feast. Problem is, you will wait too long and end up with rotten meat.
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E-man says
I know very little about the appraisal business & its workings. Why is price appreciation an issue for appraisers? Sorry if that's a dumb question.
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BoomAndBustCycle says
Nope. I will not buy a 300K California shack. That is why I never complained -not even once that I am not getting hold of a property. If I was a bottom feeder I'd already got in with Iwog. I refuse to buy a declining value RE. period. By the way what are you here for? http://en.wikipedia.org/wiki/Post-purchase_rationalization
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I wouldn't call everyone there a bottom feeder. I know some folks who bought their residence at the courthouse steps because it was cheaper than buying someones flip.