6 Comments for this entry

1. AGENT says:

   February 3, 2009 at 3:27 PM

   There are still people who want that dream home and truly believe that 50% off the previous appraised value is a deal.

   Dream is right. Here we go again. And, from what I heard from a friend who was at the AZ auction a few days ago, for 6 days straight, it was “investors” buying, multiple purchases.

   The auction’s winning bid prices started at $40K, up to $70K, for a 2006 3BD/2BA home in good shape. Wells Fargo was doing 5.35% investor loans with good credit & good FICO. Figure the numbers. How many renters are driving around PHX looking for a place?

   Seems to me there will continue to be a lot of vacant homes in PHX. Maybe there are just a lot of people with high hopes there.

   I’ve been to these auctions in Las Vegas. Nobody’s getting anything yet. It’s still a dog and pony show. Maybe in ’10 or ’11. Being patient is really hard.
2. surak says:

   February 3, 2009 at 6:10 PM

   These auctions are a scam!!
3. twist says:

   February 3, 2009 at 6:16 PM

   Agent-

   I loved how he danced around the speculator issue. I don’t care if their “mandate” is to get OOs in there, it doesn’t sound like they are doing a thing to discourage speculators.

   I’ll bet that at least half of the buyers are speculators, if not more.
4. arizonaslim says:

   February 4, 2009 at 9:03 AM

   I wouldn’t be surprised to learn that a lot of these speculators are first-time landlords. Wait until they get a taste of what that job is all about. They’ll be bailing out of their “dream houses” faster than the rats jumped off the Titanic.
5. AGENT says:

   February 4, 2009 at 1:16 PM

   Twist and Arizonaslim….

   I agree that at least half of these buyers are speculators, if not more.

   Yes, a lot of these speculators are first-time landlords and do not have the knowledge or gutts to weed through lousy tenants, or to manage tenants, which can be very confrontational. You’re right, wait till they get a taste of that. It will be easier to leave those “deals” empty than to mesh with tweaked personalities in the desert.

   My friend in AZ and I discussed the same thing. Even though she bought “five” houses, she is very unsure about the possibility of renting them even for $600.

   I’ve watched this lady buy 13 houses in Buckeye just to lose them ALL in foreclosure. Now, here she goes again. I just think it’s still way too early to go throwing a good FICO and cash around.

   This just looks like Round Two for Losers.
6. Bart says:

   February 5, 2009 at 9:15 AM

   Twist

   I watched the attached forclosure video on Fox. The “sold” house in Gilbert for $388,000 is a house that I have been watching on web sites. I was listed at $488.000. before the weekend auction. If it was sold on the weekend for $388,000. then why is it still on web sites with a recent price reduction to $469,000.(tues feb 4).

   Is sold at an auction not really sold until they see if they can get for before a certain date?

   There is a contradiction between the video and real estate web sites

   Thanks

   Bart

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