Wow, what a surprise today I encountered! One thousand dollars for this California city house? Is this a joke? Is this a reckoning day? Am I kidding?
No, there is no typo. This house is absolutely not in Michigan or Ohio where a house sold for $1,000 is no surprise; it is indeed in a big city of California.
This house surprises me:
1**1 ******t Ave ***** CA 9****
2 beds, 2.0 baths, 894 sq ft
For Sale: $71,859
See listing websit
| Sale History | |
| 12/13/2007: | $184,417 * |
|---|---|
| 11/08/2005: | $272,000 |
| 01/25/2005: | $140,000 |
From the above info, 10 years ago this house is valued at $70,000. Its Peak sold price was $272K in November 2005. 9 months ago, a bank took it back for $184K.
Recently the listing price was $71K (Note: the above listing in Zillow.com as of August 22) and reduced to $54K (see the bellow). It is reducing, reducing, and finally falling apart...
| $54,000 1**1 ********* Ave ******** California, 9**** |
MLS #: 40*****5 |
Beds: 2 Baths: 2 Sq Ft: 894 |
Try harder and harder, please (Note: as an investor, I have ample time to wait). Now, everybody almost finished their hard works and tired (satisfied?). A realistic price tag is finally on the auction table. How much they would get for?
Down to ask for $1,000. After all the hard works done by the banker, asset manager, and agents in the past 9 month, do you expect all of them possibly get just a thousand dollar out of it? See, how good our traditional marketing channels can do the job?
Don't say it is a waste time! Look at a bright and broader view, it is a job-creating so that everyone can be busy and earn some money to put bread on the table. So it is a MacroEconomics. Who cares about national productivity, right?
I am very disappointed at some fellow agents who refuse to write a low ball offer, say 20% off, since they are trying to act as a principal, not an agent. However, if I make you an offer asking 90% off your listing price, I don't blame you if you kick my butt. How much do you think you "will" buy this house? You are not serious to expect a final price omitting the two "0" at the end of its previous sold price, aren't you?
But just for this case. If you're not, you are too kind to be greedy, for I know you may be wrong. Look at stock market, as of August 22, our two big GSE Fannie and Freddie lost their stock value more than 90-96 percent in a year. Don't you think it could happen in real estate? Why not?
Yesterday I watched PBS TV on Californian Education Review. It was said that California education, particularly the infrastructure, has been deteriorating to follow Michigan and Ohio. But it is still incredible for me to think the housing market will follow the shoe. Gee, I shouldn't watch the TV program.
I know this auction site very well and have been with it for more than 3 years. It is a serious auction with no tricks, not like others, such as R**** or other W**** that play buyers at their fingertips.
One thing I am 100 percent sure is this house will be sold a lot less than the price it held 10 years ago. It would not surprise me if it could be sold for less than $5K (Note: I have my reasons).
Let see the result in a few days.
As Ronald Reagon forgot, I don't remember anything. Did I work there in that little white cloudy house? Are you sure that was ME up there? How come I am down here? That's definitely not me!
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4 bidders bid on it in just ONE day. The highest current bid price run up to $5,500. It is over the reserved price set by the banker. Yes, that means the last bid shall be accepted, if no one willing to make a higher bid. There is certainly a successful sale.
May I ask all the big CEOs of financials, such as Fannie, Freddie, and Indy, look at what a clear, easy, and effective channel to take your REOs off the book! Then look at what traditional way you guys have done.
When you guys, Mr. Big Bankers, are in fact sitting on Gold Trash and cry hardly for help from FED, remember nobody is a fool. What a shame of you, don't you dare to tell me you have tried your best to do the job. Don't fool me. I can see you're doing nothing, except enjoying the "party time" as all Democrats in Denver, Colorado.
May I ask you, Mr. big banker, a question: What's exactly in your bankers minds? Is it Privatize profits in your pocket and Societize your loss to the public?
While I am writing, the price went up to $6,000. Seems going to have an auction fever, even still 4 bidders in the field. It is very very very usual to see that at the website. Let's see how far it can go up. That's the nature beauty of the Market mechanism as Adam Smith subscribed. No government intervention or artificial entitlement is needed.
The bid war keeps going on the next day.
May I ask, who stops the banker from accepting the price he or she would be pleased at the preset ("reserved") level for the house just in one day? Now, the banker is able to have a sale price more than double it in two days?
AUCTION BID HISTORY
$9,500-Aug 27,08 11:58:46 AM-By:
$9,000-Aug 27,08 07:00:52 AM-By:
$8,750-Aug 27,08 07:00:43 AM-By:
$8,500-Aug 27,08 07:00:34 AM-By:
$8,250-Aug 27,08 07:00:24 AM-By:
$8,000-Aug 27,08 07:00:14 AM-By:
$7,750-Aug 27,08 07:00:14 AM-By:
$7,500-Aug 27,08 07:00:03 AM-By:
$7,250-Aug 27,08 07:00:03 AM-By:
$7,000-Aug 27,08 06:59:53 AM-By:
$6,750-Aug 27,08 06:59:53 AM-By:
$6,500-Aug 27,08 06:59:41 AM-By:
$6,250-Aug 27,08 06:59:41 AM-By:
$6,000-Aug 26,08 01:58:56 PM-By:
$5,750-Aug 26,08 01:58:56 PM-By:
$5,750-Aug 26,08 01:58:56 PM-By:
$5,500-Aug 25,08 11:06:46 PM-By:
$5,250-Aug 25,08 11:06:46 PM-By:
$5,000-Aug 25,08 10:23:29 PM-By:
$4,750-Aug 25,08 10:23:29 PM-By:
$4,500-Aug 25,08 10:23:17 PM-By:
$4,250-Aug 25,08 10:23:17 PM-By:
$4,000-Aug 25,08 10:22:36 PM-By:
$3,750-Aug 25,08 10:22:36 PM-By:
$3,500-Aug 25,08 10:22:25 PM-By:
$3,250-Aug 25,08 10:22:25 PM-By:
$3,000-Aug 25,08 10:22:14 PM-By:
$2,750-Aug 25,08 10:22:14 PM-By:
$2,500-Aug 25,08 10:22:01 PM-By:
$2,250-Aug 25,08 10:22:01 PM-By:
$2,000-Aug 25,08 10:02:27 PM-By:
$1,750-Aug 25,08 09:35:20 PM-By:
$1,500-Aug 25,08 09:11:30 PM-By:
$1,250-Aug 25,08 07:48:36 PM-By:
$1,000-Aug 25,08 07:37:39 PM-By:
AUCTION BID HISTORY
$28,500-Sep 08,08 06:57:31 PM-By: a
$28,250-Sep 08,08 06:57:31 PM-By: a
$28,250-Sep 08,08 06:57:31 PM-By: 6
$28,000-Sep 08,08 06:57:31 PM-By: 6
The subject property is sold for $28,500. That's almost 90% off its peak price of $272,000 and 60% off its price 10 year ago. Great deal!
What a steal! I don't live in Cali but my guess is someone got a bargain.
Charles Jarvis
What a steal! I don't live in Cali but my guess is someone got a bargain.
Charles Jarvis
Bargains are everywhere in California.
3 months ago, I wrote a story here about my friend's house hunting in Los Angeles County, CA. My friend would like a lady agent write up and present an all cash offer to buy her listing. At the time, the asking price was $369,000. The offer is $320,000. She just insulted at my friend and refused to present the offer. Certainly, there is no possibility for a deal.
Today, I saw a new listing of $199,000 come up. It is exactly the property my friend wanted 3 months ago. Also, I saw a SFR just reduced its listing of $575,000 (Still, you can see it with this same asking price tag at Zillow.com and the listing office website today) to $242,000 (from other website). The SFR was put on market as a short sale property. Now it is forecolsed and would be sold as a REO. (Note: Zestimate carries a current market value of $461,500 as of today, and a bank took it back for $413,850,)
Wait and see! Now a lot of Alt-A loan is about to be reset and the Los Angeles County's unemployment rate is catching up those rates of San Bernandino and Riverside, Now, it is about 9%, up from 5.5%, but still less than two digits of some other counties like Merced.
We will have a lot fun and chance to make some money.
While big brothers are seizing up the big juicy chunk slice of prime steak, such as fannie or freddie, at least I believe you deserve some chicken soup at this cold days.
Common, don't you think so?