Foreclosure auction

[SD Realtor]

I believe that the locale plays a big role. I have a total beater fixer in escrow right now in La Mesa. Most everyone that saw it said no way, even at the cheap price this is to much of a train wreck. However someone did go for it and we have a back up offer as well. We are talking foundation work, step cracks up the walls, and the works. I also have closed a couple properties in not so great neighborhoods that were priced to sell and they did.

I believe pricing still is paramount especially as the quality goes down. Nobody that posts here would even consider these neighborhoods but it is just some data. I believe that the marketing effort should vary with the home and the competition. In high end homes I absolutely would recommend caravan, professional photography and such.

I don’t dispute that buyers want turnkey and a great price at all. I did just want to point out that there are properties being bought in other conditions.

SD Realtor

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

“turnkey AND a great price”

This has my vote,

My two cents, We are still a long way from the above just yet.

I would take a beat up foreclosure, at a beat up foreclosure price (IMO we are a long way from this as well).

[an]

I think we all agreeing to the same thing but saying it differently. turnkey AND great price = fixer AND exceptional price. I can almost guaranty that if you have 2 house in the same street, on the same side with the same lot size and floor plan & same view, one a turnkey house @ $600k and one a dump/fixer @ $400k, the dump/fixer will go first. Obviously this example will never take place in real life. My point is if a fixer + cost of fixing + cost of time to fix + cost of hassle of dealing w/ fixing is less than turnkey AND great price, the fixer will sell first. What we’re seeing right now is fixer pricing to close to turnkey, hence they’re not selling and turnkey houses selling.

[latesummer2008]

BS..BS…BS….BS…BS…. There is only one reason a property doesn’t sell. PRICE. You can print as many glossy pictures, hold as many open houses and dazzle with alot more BS, but the FACT REMAINS, houses don’t sell if they aren’t priced right.

And,in a declining market such as this, it is paramount.

End of story.

http://westsideremeltdown.blogspot.com

[sdrealtor]

Houses only sell if priced right but if marketed right they can sell faster and therefore at higher prices in a declining market. Thats the heart of what I’m saying.

Fixers are a real tough sell even at good prices. SD R check out the house on La Duela and tell me otherwise after looking at it. Great location w/ view, great neighborhood, good lot, single level fixer that isnt horrible and inferior houses (potentialwise) in better shape are selling all around it in a week or so at much higher prices.

[JJGittes]

La Duela, hmmm, kinda small for a family house. Not repulsive, but not compelling either. I’m not sure “staging” with a few rooms of pottery barn furniture and some potted plants would do the trick on that one. Anyway, in that it appears to be listed with a big firm, I can’t tell what the seller is getting for his 2-3% to the listing office. He might as well as gone with a flat fee listing agent, jacked up the buyer’s broker commission to 3.5%, and saved the $12-18k in the long run. Basically, like the vast majority of houses, its gonna sell for what its gonna sell for.

[an]

The one that’s down the street that is the same size was sold for $680k. It’s in a cul-de-sac, so I’m not sure if that play a part of the price difference, but it was also sold on 07/10/2006. So, up until 04/29/07, it was priced at $625k. IF price hasn’t changed for the last year in 92009, the this house was @ $55k discount, now $85k discount. I don’t know what price move has been like in the area the last year, so maybe you can enlighten us. That might give a clearer picture.

[sdrealtor]

You have to see it to understand but the house sits at the back of a really nice neighborhood with no fees, mature trees, great schools, nice size lot on a quiet street with a really nice view. For what it is, it could be spectacular with a little not alot of work. It should sell for at least the same price of one in an inferior location but better condition. I think SD R would be uniquely qualified to comment on it as he has another one in escrow around the corner. Would love to hear his point of view.

[SD Realtor]

sdr I took a quick look at the home on La Duela. The views look awesome and it seems to be in a very nice spot. If there are similar/inferior homes that have sold at a much higher price then it is a mystery to me why this listing is sitting.

Let me get through some work this morning and I will take a better look at it. The AMT MT difference is puzzling but I was to lazy to do a listing history report to see if it was in/out of escrow or just withdrawn for awhile. I will check to see against the other listings that are pending/sold to give you my opinion. The fixer I have pending is on Denwood Rd in La Mesa. This place is a palace compared to the La Mesa one. The La Mesa home was priced about 125-150k less then an active similar home across the street. As I said, it is a bigtime fixer, not a scraper but close.

SD Realtor

[SD Realtor]

“Fixers are a real tough sell even at good prices. SD R check out the house on La Duela and tell me otherwise after looking at it. Great location w/ view, great neighborhood, good lot, single level fixer that isnt horrible and inferior houses (potentialwise) in better shape are selling all around it in a week or so at much higher prices.”

I got some more time and did a little more involved look. The La Duela home has been in and out of pendings 3 times since it has been listed. However in each case the buyers backed out quick for whatever reasons.

Pricewise the home is priced okay for that area. I wouldn’t say that it is priced super aggressively but I would say it is priced okay…right now at least. Indeed the escrow I am in (representing the buyer) is for a much much nicer home but at quite a bit higher price. Now the real question is, how is the home priced compared to the other homes in the area. The home is priced at 625k up until 4/29 which it then was changed to 595k and then on 5/12 to a variable range of 595k-610k. Why they bumped the price up I do not know.

Now there was a listing on Jacaranda that sold for 562k and is a bigger home back in 2/5/07. However Jacaranda is nowhere near as nice of a location as La Duela. It is far noisier with no view. Another sold on Amargosa back in 10/06 for 625. Again no view. Amargosa is not as noisy as Jacaranda but not as nice a lot/view as La Duela. There is another pending on Amargosa at a LP of 550k-600k, (why the big spread? can you say Prudential?) anyways this home doesn’t have the view but it looks very very nice inside. So it is priced VERY competitively and is in good shape but does not have the view. Yet it went into escrow in 6 days after hitting the MLS. There is another home on Represa in escrow at a list price of 615-674. Again, not a view lot at all but the home looks pretty nice from the few pics there are on the inside.

Okay so bottom line? My opinion is that La Duela needs to be priced a bit more aggressively. Yes it has nice views BUT the views are DOMINATED by looking at a sea of rooftops. It is not like a nice canyon view, you know what I mean? Again, maybe it is my personal taste. I only did a search on the mapcode that this home is in, so I am sure there are other properties that you alluded to that are inferior but that I did not catch. However compared to the properties I did compare it to, it did not match up well against.

In general I would agree that fixers are hard to sell. In theory yes, I suppose it should sell for the same price as an inferior location given the homes are equivalent. However it has not been like there have not been any pendings. It has had three pending round trips. Also it is being listed by a full service brokerage so I assume all the marketing is in place. Also I think there is a problem that these people should have priced more aggressively from the onset of the listing. As you always say and I heartily agree the first week or two are crucial.

SD Realtor

[SD Realtor]

“Fixers are a real tough sell even at good prices. SD R check out the house on La Duela and tell me otherwise after looking at it. Great location w/ view, great neighborhood, good lot, single level fixer that isnt horrible and inferior houses (potentialwise) in better shape are selling all around it in a week or so at much higher prices.”

I got some more time and did a little more involved look. The La Duela home has been in and out of pendings 3 times since it has been listed. However in each case the buyers backed out quick for whatever reasons.

Pricewise the home is priced okay for that area. I wouldn’t say that it is priced super aggressively but I would say it is priced okay…right now at least. Indeed the escrow I am in (representing the buyer) is for a much much nicer home but at quite a bit higher price. Now the real question is, how is the home priced compared to the other homes in the area. The home is priced at 625k up until 4/29 which it then was changed to 595k and then on 5/12 to a variable range of 595k-610k. Why they bumped the price up I do not know.

Now there was a listing on Jacaranda that sold for 562k and is a bigger home back in 2/5/07. However Jacaranda is nowhere near as nice of a location as La Duela. It is far noisier with no view. Another sold on Amargosa back in 10/06 for 625. Again no view. Amargosa is not as noisy as Jacaranda but not as nice a lot/view as La Duela. There is another pending on Amargosa at a LP of 550k-600k, (why the big spread? can you say Prudential?) anyways this home doesn’t have the view but it looks very very nice inside. So it is priced VERY competitively and is in good shape but does not have the view. Yet it went into escrow in 6 days after hitting the MLS. There is another home on Represa in escrow at a list price of 615-674. Again, not a view lot at all but the home looks pretty nice from the few pics there are on the inside.

Okay so bottom line? My opinion is that La Duela needs to be priced a bit more aggressively. Yes it has nice views BUT the views are DOMINATED by looking at a sea of rooftops. It is not like a nice canyon view, you know what I mean? Again, maybe it is my personal taste. I only did a search on the mapcode that this home is in, so I am sure there are other properties that you alluded to that are inferior but that I did not catch. However compared to the properties I did compare it to, it did not match up well against.

In general I would agree that fixers are hard to sell. In theory yes, I suppose it should sell for the same price as an inferior location given the homes are equivalent. However it has not been like there have not been any pendings. It has had three pending round trips. Also it is being listed by a full service brokerage so I assume all the marketing is in place. Also I think there is a problem that these people should have priced more aggressively from the onset of the listing. As you always say and I heartily agree the first week or two are crucial.

SD Realtor

[an]

Looks like the house on 11119 MORNING CREEK DR. S., SD – Rancho Bernardo, CA 92128 was bought by a flipper. Bought for $585k + 5% auction fee = $614k. I don’t know exactly what they did but base on the pictures I saw on Zip, they at least updated the whole kitchen w/ new appliances, counters, and cabinets. They also repainted the whole house. They didn’t do anything with the backyard though. They’re trying to sell it now for $669,000 – $684,000. Would be interesting to see how this turn out. If it sell for $669k – 6% commission, the total sale = $628k. That’s $14k more than what they bought – what they put in & 1 month of carrying cost, there’s really no room for error for them.

[an]

Looks like the house on 11119 MORNING CREEK DR. S., SD – Rancho Bernardo, CA 92128 was bought by a flipper. Bought for $585k + 5% auction fee = $614k. I don’t know exactly what they did but base on the pictures I saw on Zip, they at least updated the whole kitchen w/ new appliances, counters, and cabinets. They also repainted the whole house. They didn’t do anything with the backyard though. They’re trying to sell it now for $669,000 – $684,000. Would be interesting to see how this turn out. If it sell for $669k – 6% commission, the total sale = $628k. That’s $14k more than what they bought – what they put in & 1 month of carrying cost, there’s really no room for error for them.

[Mr. Drysdale]

I’m very familiar with Crest at Del Mar. The complex has a water pressure problem from having to push water from El Camino Real up the hill into the complex and units (hence all the burst water pipes here) and there are settling issues as well, again hence the bursting pipes.

The complex has also had problem with the subsidized/low income housing project next door (across from the new police sub-station) with the kids from that project jumping the pool fence at Crest at Del Mar, swimming at night and throwing pool furnishings in the pool, etc.

In fact, I also learned by accident from an attorney at a real estate development seminar that there is a lawsuit from those at the end of San Elijah (sp) Court next to Crest at De Mar, who bought condos converted from apartments because they weren’t told about the low income/subsidized housing project next door : (

[Author]

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