Here are the results for the recent Somersett auction. The initial party and kickoff drew approximately twenty people. As of the cut off time of July 1 they had received only one sealed bid. After speaking with the agent he said he would do it again and felt the interest he received was worth it. Basically all properties that were on the auction block are still available. Is this a another sign of our continued downward market?
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Sully
I think it was also bad timing, with the stock market having its worse June since the crash of 1929; the “wealth effect” has left most investors.
Oil hitting new highs, etc. Not much good news coming out of Wall Street, the Fed and the Treasury.
I would think most buyers are waiting until some of this blows over. The June sales data will be out in a few days, this may confirm as to whether or not the buyers are active or passive.
From my own perspective, there isn’t anything out there that has sparked my interest. Most of the listings have been there for a year, and I’ve already seen them. The prices on most of the new listings is, at best, delusional.
smarten
How can “all properties that were on the auction block…still [be] available” if “as of the cut off time of July 1 the [sellers] had received only one sealed bid” unless there was no auction whatsoever but rather, some other type of sales vehicle that plagerized the name auction?
This was my original complaint JoAnn. Sellers like these, as well as the bonehead agents who represent them [and go along with the deception], aren’t worthy of the print people like you devote to them. The marketing plan is basically a scam.
When these homes are truly up for auction, with no or a stated reserve that is truly below fmv, give me a call. Until then, I hope Somersett forecloses for delinquent HOA dues [and if it does, call me as well].
As to the rest of you out there, Happy Fourth of July!
DonC
It’s certainly a symptom of a poor housing market, but the poor housing market may just be a symptom of a strugling economy.
People have lost their nerve because of the housing crisis, the financial crisis, and rapidly rising gas prices. As a result they are not buying a lot of things, houses included.
You see this in the savings rate. This rate went from .4% in April to 5% in May. Some of this is probably the result of the tax rebates but the change is huge — each percentate represents about $136B or about .75% of GDP. Whatever way you look at it, having the savings rate change from less than 1% to 5% is truly significant given the forecast growth for 2008 is 1.5% or less.
Strong leadership would help considerably since the issues are 80% attitudinal, but since “W” now stands for “weak” it seems unlikely things will get better immediately.
But to echo smarten’s sentiments: Let’s have a wonderful 4th celebrating the birth of a great nation. Go USA.
GratefulD_420
Hi JoAnne… with regards to: “Basically all properties that were on the auction block are still available. Is this a another sign of our continued downward market?
–answer is no. This is not the indicator of the market. Basically the sellers or “Auctioneers” did not want to sell at the True Market Price. If they were willing to find the true market price in a true auction….. then all the houses would be sold and the agent/sellers sucessful. He can say what he wants as far as success… but untill a house is sold and commisions made…then this is not truly a sucess.
Jim Johnson CRS
Great Blog! I have been selling real estate in Bend Oregon since 1981 and find it refreshing to find a helpful blog like yours! Keep up the good work!
http://www.bendoregonrealestateexpert.com/
longerwalk
I’m afraid these kinds of ‘auctions’ will bring fewer and fewer serious buyers, as the term is being bastardized . . . those who are serious will seek alternate methods/times of acquiring property. It wouldn’t be surprising if the attending realtor were pleased to land 20 new prospects, which would have nothing to do with the ‘auction’ itself.
Sad to come to this kind of chicanery.
MikeZ
IMO, these fake auctions do damage to the reputations of the realtors associated with them.
There are very few dumb buyers left. The vast majority of the remaining buyers out there were smart enough to sit out the mania. They’re patient, have cash, good FICO scores and keep themselves well-informed.
They know fair market values. And they understand sham auctions.
This kind of underhanded gimmick is precisely how realtors became one of the least trusted and respected professions in the last few years.
JoAnn, don’t let yourself become tarnished by association with gimmicks like fake auctions.
GreenNV
Off the auction topic, but here is the worst new listing I have seen in a while. http://www.prunevada.com/propertyDetail.aspx?listingid=17-80010780&src=propSearch (sorry, I can’t link to the MLS through RRB). Scary photo quality. Note the Zip code – Arentz in in Belli Ranch, 89523, not 89436 Wingfield Springs. Guess what? The seller is a Nevada license holder! What Terri Turner ever do to Kasey to deserve this sort of treatment?
downtownjunkie
omg… that’s horrendous!
NAS
Caveat emptor and all that, but this is nuts. I find this offensive:
http://reno.craigslist.org/rfs/746224951.html
Look at the price. The same model is for sale (pending) over on Castlehawk,listed in the high 500K. This, on top of the shill auction doesn’t say much for your R.E.”professionals” out there. Does no one speak up? Who cares and every man for him/herself?
cash buyer
hi nas,
for relocating outsiders, this type of information is very helpful in determining which realtors can be trusted. this board has identified “it won’t last” “your last chance” “oriental buyers are coming, get it now” “phoney auction” realtors to avoid. for newbies coming into reno, it is a useful tool. thanks for pointing him out.
dogwalker
What’s up with the trail map at Somersett? I spoke with them last February, then April and was told that publication on their website was eminent. Today they said that their preliminary map is not accurate according to people that use the trails and that the City of Reno is going to come out and map the trail system. They can’t give me a prelim.
I told her I want to buy in somersett and have been waiting for the map as I am an avid dog walker. The trail system is one of the main draws for me.
I agree with other post that there are many smart, qualified buyers are waiting, cash in hand, for the right time and price. But the trail snafu has me wondering. If they don’t know where their trails are, and this lady said they are “finished”, then how do they even know they have 27 miles of trails?
Is the HOA solvent? How’s management?
NAS
Dogwalker poses some good inquiries re Somersett. We were in the area a couple of months ago and asked what the situation was with the country club. Don’t remember the exact number, but needed 40+ more memberships to break ground (good luck).
Personally, I’d be more concerned about the housing than the trails at this point. Re the HOA, don’t know. But, common sense tells me with the foreclosures,REO’s, and builder’s walking, I would be exercise due diligence. The gas station thing isn’t over with yet either. I think Somersett has great potential but be careful.