Bressi Ranch…16 new homes to be auctioned off 10/21/06

[no_such_reality]

What’s the reserve on the auction. There’s a small development in Huntington Beach, like 9 units total, 3 of the big ones remaining $1.6-1.9M that are being auctioned on Nov 4th. Two have reserves, one doesn’t.

If the auction has a reserve, IMHO, it’s not an auction.

It’s basically a ploy to make people think they’re getting a deal when really, they’re just hitting the sellers min-bid.

[an]

no_such_reality, I don’t know why you think auction with reserve are not real auction. Reserve is just there so that seller have an option not to sell to too low of a bid. If the reserve is too high and there was someone who bid on it, then too bad of them if they got caught up in the bidding war. If you do your research, then you, as a bidder, should have a max bid on an item/house as well. So if your max bid>reserve, then you both win, if not, then the house/item doesn’t sell and the seller will lose some money for putting it on auction.

[no_such_reality]

AN, it depends on the reserve and I understand the purpose, in the event the event has too little interest, the seller doesn’t let it go for 10 cents on the dollar.

However, in the current market, I suspect the reserve is really just about the buyers asking amount at this time and in sense, means the auction is a waste of time. For the small auction near me, I suspect the reserve is in actuality, 80-90% of their current asking price that they haven’t been able to get for the last several months.

Since the Bressi is larger, hopefully, their reserve since there are several properties is lower.

[jimklinge]

Bressi’s auction will be having reserve prices, but they’re not releasing them until the day of the auction.

What does that tell you? They won’t be too low, that’s for sure.

I’m guessing they won’t sell one of them at the auction.

Jim the Realtor

[an]

no_such_reality, I agree that if the reserve is too high, then it won’t sell. But not only will it not sell, the person(s) who put it up for auction will lose money since it cost money to put it up. That’s the whole point of auction, only the realistic sellers will get their property sold. I’m sure most people who come to bid only car about those properties anyways. Be it 10% of the properties being auctioned or 100%.

[JES]

Sounds like a great news story, even if they do sell all the homes. Let’s get the NC times to show up. Can you imagine the headlines if they don’t sell any!

[farbet]

Yes, we should all go and just remain silent. No bids. They probably will have their shills to bid up the prices!!
If no takers surely they will have to go to plan B—etc
Bressi will send a message to the other developers ” come on down”.

[farbet]

Does any one know the time of the auction?

[Carlsbadliving]

Here's an article on the auction from today's UT.

[wawawa]

I am going to attend the event and see what is going on.
According to San Diego County recorders office this properties are owned by MODEL HOMES PARTNERS L L C .

[no_such_reality]

I was thinking of coming down, but won’t make it. Can you please report the following back to the group?

How many qualified bidders with paddles?
Starting and final bids on each house?
Whether or not the bid met minimum on each house?

Also, just curious, are you pre-qualified bid? I was wondering if they’d let you in if you don’t have a bidding paddle, hence my reason not to make the trip.

As a side note, Bressi has a $205/HOA aleady and a 1.38% to 1.50+% property tax rate. That adds roughy $1500/month in HOA and taxes to the monthly mortgage at their supposed value.

[wawawa]

I am not pre-qualified, I just want to see how many fools there are buying these overpriced homes. I was told that I still can attend and watch the bidding despite that fact that I am not bidding, we shall see.

[wawawa]

Not a single one of them was sold.

I went to the auction and there were about 110 people showed up. Only 10-15 people were holding “auction number” at their hand and the rest of crowd were just observer.

Last night I looked at the San Diego County records web-site and found out that these properties were sold on Feb. 2005. Price paid for these 16 properties were in the range of $950K to $1.31M.

Highest bids were in average $250K-$300K less that the sold price of Feb. 2005. As a face saving measure they called these bids “subject to approval”.

Lady who was sitting beside me told me that most people in the auction are residences of Bressi Ranch who came to see how much their properties worth. That explains sad and somber faces that I saw at the end of the auction.

Owner of these properties who are investors/lawyers from L.A. are screweeeeeeeeed.

These smart guys are going to lose $300K-$400K on each property. Lawyers, Huhhh, it could not have happened to any better groups of people.

[farbet]

Thanks Wawawa. I had planned to go.
As you wrote they are truly screwed. Hope The other developers take notice. 40% mark up is ridiculous.
Thanks once again

[JES]

Just to clarify – Do you think that the bids will be accepted? You said none sold, but you also said that some people bid 250k or so below the previous sold.

[Author]

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