more fools fall for auctions

[kev374]

http://www.latimes.com/classified/realestate/news/la-fi-auction27oct27,0,5599652.story?coll=la-home-headlines

mentions a 24yr old idiot who buys a 2 bedroom condo in Aliso for $410,000 and thinks he got a “deal”. Property taxes on that itself will be over $500/month!! not to mention that place will be $350k by next year, and probably $300k in 2 yrs.

[PerryChase]

LA Times Story

 

[no_such_reality]

Argh, she bought an apartment conversion for $394,000.

The conversion is only half done… Another 190 units to go.

[PD]

I love this line:

“Our goal was to not let buyers chase the market down,” Sares-Regis’ Eyerman said.

I see this a slip-up. He is admitting that prices are going down.

[barnaby33]

Thats ok PD, auctions are an implicit admission that the market is going down anyway. I do agree with the story in one way. Auctions are an efficient mechanism for the developer/converter to find out what the market will bare at that point. Id say that those poor suckers just set the ceiling on comps for the next phase.

Josh

[ocbuyer]

auctions are a solid and healthy way to appraise and evaluate the market in real time.

if we’d have had more auctions on the uptick we’d be in better shape. it shows exactly what people are willing to pay – today.

even the 6% gang is jumping on board.

http://www.ocregister.com/ocregister/money/homepage/article_1329168.php

the auctions at the top of the market are the best for the developers by far – that’s a well known fact. so get frustrated for a while, but know they wont get those dollars in 9 months to a year.

[sdcellar]

auctions are a solid and healthy way to appraise and evaluate the market in real time.

Really? To me, they seem to be a mechanism to incite emotion and frenzy where none exists ordinarily.

[Author]

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