Sunday, October 08, 2006

Your Home or an "Aging Industrial" Property?



From the Stockton Record:

After several months of fruitlessly trying to sell her north Stockton home in a very slow and very competitive housing market, Debra Mejia thought: "You know, I really want to do something different." She may have found it.

Mejia, who happens to be a real-estate agent with WonderAgents in Stockton, has decided to auction off her four bedroom, 31/2-bath home at 3376 Schooner Drive, overlooking Fivemile Slough. The house is a beauty, she said, and was on the market in the spring and summer at $579,000. The house actually garnered an offer, she said, but the deal fell through. Since then, she got no further action with a listing at $559,900, she said.

Because she had already bought and moved into another house, she was motivated to sell, but then hit upon an auction as a way to sell at a time of her choosing. The sale via auction should happen because would-be buyers will want a deal, she said. She has set a $510,000 minimum for the winning bid, and Mejia believes that will generate a buyer for sure...

House auctions do happen occasionally in a slow housing market but are considered a rarity - and hardly a guaranteed method for selling a house unless the minimum is extremely low and there's not substantial bidding up, said some local real estate brokers. "It is bizarre, and it's not going to generate any interest," Bruce Davies, co-owner of Partners Real Estate in Stockton, said flatly...

Another longtime Stockton real estate broker Art Godi of Art Godi Realtors said auctions tend to pop up in very slow markets where the seller is hoping to snag a bargain hunter. In this country, auctions are typically only seen as a selling tool for aging industrial properties, he said. Only in a few countries, such as England and Australia, are auctions commonly used to sell homes, Godi said.

14 comments:

Karl Marx Brothers said...

It may be a better deal bidding @ minimum to start than full price, but auctions are meant for people to get a great deal, not just a small savings. And I wonder if the everpresent " buyers premium" ( usually 10%) is tacked on to the final price?
Her min bid price is too high; not enough of a substantial savings to attract serious interest.
carry on.

Karl Marx Brothers said...

by the way, good to see this blog gaining traction lately.
off topic; vote NO on the Arena Tax.

Anonymous said...

A business associate of mine in Southern California is doing auctions to sell his inventory he buys. Of courses all of this is at a substantial discount. This guy knows his stuff, he used to work for an auction company and knows how to promote, run etc. Most people who try to do this don't put in enough marketing to get the buyers they need.

Anonymous said...

If you do a search on this realtor at the California Dept. of Real Estate you'll see that she's only had her license for TWO YEARS. She was probably lured into this career (like so many others who are dropping like flies) to make a quick and easy buck. I wouldn't want her handling any deals for me.

go go gadget said...

The amount of vacant office buildings coming on market is getting very noticable lately.
Even the so called prestigious spots have for-lease signs now.
I love it. LOVE IT !!

car 54 said...

"we got trouble here in river city.
thats spelled t-r-o-u-b-le.
trouble"

Anonymous said...

and the trouble ain't pool!

They don't know the territory!

Sacramento's pull was that it was CHEAPER than most other places in coastal California...

The land rapers, speculators, real estate crooks, sleazeball mortgage brokers, low ball builders and a host of other thieves totally jacked up prices to a level that was not supported by local conditions, employment or amenities...

Now the bill comes due...

waiting_for_the_fall said...

I checked on zillow.com, the house sold in 98 for 148k. The assessed value is 169k.
Zillow values it at 464k, which usually is anywhere from 50 to 100k off.

Happy Renter said...

http://sacramento.bizjournals.com/sacramento/stories/2006/10/09/story2.html?b=1160366400^1357317

Anonymous said...

Anybody, but anybody who believes ANYTHING in the Business Journal, Sacramento or other cities, is real find! Contact me for great shares in a Bridge in Brooklyn!

Those Business Journals are a "pay for play" deal...they're in business to hype everything...

The Contracting Business is going to hell...Subs and everybody else are getting hungry...Tile Subcontractors started to feel the pinch over a year ago...

Sacramento and the "business" community (what there is of it) live off the State, and are mostly a bunch of Koolaid Drinkers

drwende said...

Now wait a second here... a real estate agent has just admitted in the local newspaper that she's not capable of selling her own house but has to resort to this auction gimmick (though I suspect she's really hoping the article will generate offers). What kind of fools will continue to list with her?

Happy Renter said...

Anonymous 11:07,
It's just an article. I posted it because it reinforces that material prices are dropping.

Lander,
I'm sick of all the anonymous post.

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...
This comment has been removed by a blog administrator.