Nah, there was no housing bubble in Phoenix, Greg Swann.
Nah, home prices never fall, David Lereah.
Nah, this whole bubble thing is a figment of the bubble bloggers' and media's imaginations, Nicholas Retsinas at Harvard.
Mesa Home Owners Use Desperate Measures in Desperate Times
Two Mesa home owners use an unconventional method in desperate times to sell their homes by an auction.
There will be an open house on Saturday, October 7th and Sunday, October 8th from 12pm to 5pm, and the two homes will be sold to the highest bidder on Sunday, October 8th at 6:00pm.
"The opening bid for both of our homes is $100,000 below the other comparatives in the neighborhood. Yes, we are willing to sell the homes at that price, but we believe that by using this method to sell our homes, the market will determine the true value," said Brian Kingdeski, who owns one of the homes that will be auctioned.
"We both have been trying to sell our homes for months, but with the large amount of inventory out in the market we just aren't getting the foot traffic through our homes. Brian and I have spent around $50,000 each in remodeling and upgrades, and believe that if the market was hot like last year, the homes would have sold in one day with multiple offers," said Scott Ashton.
The two homes are located on the same cul-de-sac and lakefront. Both homes have been fully updated and remodeled and boast warm earth tones and soft lighting.
October 03, 2006
Desperate times in Mesa Arizona as homes go on market $100,000 below comps
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22 comments:
I bought my first house in Phx for $153k in an round-robbin auction in 2000. You can get good deal if there are few bidders.
The real estate market is already an auction. The house goes to the highest bidder. Why not just list the house at $100k less than comparables instead of holding an 'auction'? Your highest bid is what your house is worth. Vacuous publicity stunt. The problem is that sellers all have 'reserve bids' that are higher than what their homes are worth, higher than the market is willing to pay. Simple as that.
Oh, if only Orange County, California would be as f-ed up as Mesa, Arizona.
Auctioneers are funny to listen to.
Yes, and with 2,000 foreclosures handled by one law firm in Phoenix for one bank (BA) in the past four months, wouldn't those homes be the ones to buy?
Phoenix & California will be a fire sale come 07. That is unless the Gangs Tagging stop sign's take over HAHAHAH!
Could be worse....at least they dont own any of this:
ConocoPhillips (nyse: COP) was the big loser among the U.S. majors, down 4.4%. At $55.99, its shares are well off their 52-week high of $72.50 hit in April. The stock, which has been hit by tax changes this year in the U.K. and Alaska, is down 11% over the past year. Clearly, in a time when a rising sea floats all boats, COP is the Titanic
Everyone is going to be angry at the guy who sold his property in 2005. For instance, the dude who sold in 2004 will be envious of the guy in 2005. The sport who is selling today and tomorrow will be angry with the guy from 2005.
Get over it. You buy a home to live in it, not to make money with it UNLESS you are an investor.
If you are buying today you are going to make a good deal based on today's market price.. for today only. Good for you. Homes do not have set value's, they change based on what two people agree to.
Oil dropped today and so did gold, they too do not have set value's. Housing for investment is most likely a losing propisition for now. It will come back again. It won't ever be like it was in 04 and 05 again though... and that is not a bad thing.
Absorbing the inventory, the excess inventory, will likely take a long time and it could be painful for many that chose to buy home with liberal financing products.
Renting is a fine idea for now while the market adjusts and prices decline. Sales still happen everyday in all corners of the country. People choose to buy or rent a property for reasons only they know. Many of these people never use the services of a realtor. Imagine that.
That poor guy that sold in 2005 knows that nobody likes him... and he doesn't care.
Being semi retired/employed, I have time to get to a fair amount of local auctions. Two things that you can almost guarantee 100 percent is 1. The home and the cars (if recent models) will have reserve bids and 2.Neither the home or car is going to sell! People have a locked in mindset about what price they "deserve", or else they are underwater on both. This isn't a bubble area, but the amount of homes up for auction in the paper every week is skyrocketing! Like a ripple on the lake, the fallout from the "hot" areas is spreading.
how funny if these things end up selling for a similar value to comps. Keith would look stupid huh?
Thinking about it a little more I think these auctions are a great thing, especially if the first few of them lead to houses sold at levels comparable to 2005.
I think it would look bad for Keith and the rest of us housing bears at first. But then every FB and their neighbour's cat would hold an 'auction', thinking this is the way to get more money out of their house. The cheap marketing ploy would be so common that it would have no positive effect for the seller. Won't those flippers be surprised when only 1 person shows up and offers the absolute minimum? All sales are final at an auction - they would have to sell it for that $100k off reserve price.
Now that would be funny.
NEWSFLASH...They are not going to sell at all...The problem is going to be totally relative to how much they owe on the home. Very few people are addressing that More is owed on these homes (all areas)than they are worth. Get ready for Bank of America Relators.
They will bulldoze half those crapshacks before this thing is over.
but I thought your home was you best investment?
http://whatbubble.blogspot.com/
WHAT IS A ROUND-ROBBIN AUCTION?
"your home was your best investment." only if it was bought at the right price (i.e.price to income ratio)
look - it is mesa we're talking about here...the land of white trash & poor mormons (usually the same thing). this auction is just another sales gimmick. no different than the people that are offering a free SUV or a timeshare or 1 year of HOA fees. i am certain the sellers have their set price in mind. this is just a way to generate interest to set them apart from the other 54,000 stucco shacks that surround them.
We just had an auction around the corner from my house. Listed for many months at $465,000. Busy corner at 6000 Little Rock, Rocklin, CA (Sacramento area). The seller decided some one could auction it with a starting bid of $380,000. Guess what? That was the sales price! It never came off the reserve and bang went the gavel. Stunned sellers. They could have probably sold it between $410,000 to $420,000 6 months ago, except for their stubborn nature against price reductions. The sellers left $30,000 on the table 6 months ago. And now get this...the buyer caught the falling knife. Current prices from 2 months ago are dropping thru the $380,000 level now. This market could get VERY SQUIRRELLY very quickly.
Buyers beware! A drop of $100k in this inflated market is like caughting a falling knife! It will hurt you! When those houses sell at 25%, then we'll talk. People just don't get it. When the bigest bubble in history explodes, the last thing you want is real estate. Until it hits rock bottom. Just a hint, the Japanese are still waitng for their bottom, and it's been 17 years! Wake up America! Ths is going to look like the 1930's!
Has anyone else seen this show called million dollar listing?
Good Lord!
Now I totally understand why realtors have the reputation they do!
Let me tell you a little something about realtors.
Their very selfserving, egomaniacs(most)!
They try to tell you how hard real estate school was or is.
Well, if that were true,why does every twit and twat have a license?
Never forget, A house will sell itself, you either like it or you don't!
You like the area, schools, shopping etc. or you don't!
A realtor shuffles paper, and tells you how hard their working for you!
(If) they have multiple listings, how can they work hard for you and the others as well!
They pimp themselves out, just look at their photo's, the cars they drive...look at me, I'm successful!
*** 10% sell, 90% talk!
That photo is actually real!
It shows agents running to a potential seller looking for a listing agent!
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