Pookie_IHB
New member
It make sense now. Thank you!
29 Grape Arbor in Northwood II (another flipper listing coming to an MLS near you)
- Thread starter usctrojanman29_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
How do auctions get cancelled? I mean is it something the current owner does to warrant a cancellation?
I don't understand how the process can get dragged out for so long.
The minimum bid is what they will start at, but that doesn't mean that the auctioneer doesn't have the right to bid on behalf of the trustee, making the high bid more important.
I think you may be asking a different question than the others gave answers for, but maybe I've misread...
For some properties, the opening bid is dropped without notice (lower than the published opening price) and as you wrote, the auctioneer announces a lower price and the pros get on their phones to double-check their research. Sometimes they have a reserve price (which is the scenario that t spoke of), and sometimes they don't.
So to answer your question, if the bid gets dropped, they don't require notice the day before.
Hope this helps.
-IR2
if it's a cash buy and the buyer is willing to pony that much dough, would it even matter what the appraisal came in at?
exactly why it's not even worth looking at real estate in irvine nowadays. complete waste of time.
usctrojanman29_IHB
New member
Very true, but even if you were putting 40%+ down and the appraisal came back $30-$50k lower than the contract amount...wouldn't you feel like you overpaid (i.e. the winner's curse)? You need 3 to 4 comps priced at a similar price point before it becomes a good comp and not an outlier. Everything in the neighborhood is selling around $300/sf +/- but someone is willing to pay $340/sf+? I just don't get it.SoCal78 said:
graphrix_IHB
New member
Screw 29 Grape Arbor... 27 is scheduled for the auction tomorrow with a minimum bid of $550,704.97. Come on down FCBers! Get your red hot Irvine house for 20-30% off wishing prices.
usctrojanman29_IHB
New member
So I e-mailed the listing agent about why he didn't send counter offers for my 2 buyers...the response was "We received over 40 offers and only decided to counter back the top 20." Good luck with having the property appraise north of $725k-$730k.
usctrojanman29_IHB
New member
It's called a BUYER'S FRENZY. Like I said.....good luck on the appraisal when the 3,100sf Plan D sold in the mid-to-high $800k range.Jayy said:
usctrojanman29_IHB
New member
Just got back from the auction...27 Grape Arbor was canceled.graphrix said:
escrowbear_IHB
New member
usctrojanman29 said:
How do auctions get cancelled? I mean is it something the current owner does to warrant a cancellation?
I don't understand how the process can get dragged out for so long.
usctrojanman29_IHB
New member
Yeah, the owner and/or their family probably ponied up enough cash to cure the default or they got some kind of loan mod. 85% of the properties were canceled or postponed. The other 10% had opening bids that were too high and they just went back to the bank and about 5% of the properties today sold. You just don't know which properties are gonna get postponed or canceled.escrowbear said:
xoneinax_IHB
New member
If there is going to be a lower opening bid, is it almost always updated and shown the day preceding the auction ? Or does the auctioneer/trustee sometimes announce a lower opening bid on the spot ?
graphrix_IHB
New member
xoneinax said:
The minimum bid is what they will start at, but that doesn't mean that the auctioneer doesn't have the right to bid on behalf of the trustee, making the high bid more important.
usctrojanman29_IHB
New member
That's exactly what happened with one property in Anaheim. The opening bid was $125,000.00 and an investor bid $125,000.01 then the auctioneer said that the trustee had instructed them to bid at $375,000. Everyone just kind of laughed when they heard that.graphrix said:
IrvineRealtor_IHB
New member
xoneinax said:
I think you may be asking a different question than the others gave answers for, but maybe I've misread...
For some properties, the opening bid is dropped without notice (lower than the published opening price) and as you wrote, the auctioneer announces a lower price and the pros get on their phones to double-check their research. Sometimes they have a reserve price (which is the scenario that t spoke of), and sometimes they don't.
So to answer your question, if the bid gets dropped, they don't require notice the day before.
Hope this helps.
-IR2
dethman_IHB
New member
USCTrojanCPA said:
if it's a cash buy and the buyer is willing to pony that much dough, would it even matter what the appraisal came in at?
usctrojanman29_IHB
New member
I agree with you, but even if you are putting down 50%+ and you get an appraisal back telling you that the value is over $50k lower than what you are paying wouldn't you have some kind of buyer's remorse?dethman said:
usctrojanman29_IHB
New member
Wow, I'm in shock....these guys hit a GRAND SLAM. The property closed on 9/25/09 for $835k or about $100k over comps. And you guessed it, it was a CASH purchase. So these guys grossed over $200k on this flip in less than 60 days.
dethman_IHB
New member
USCTrojanCPA said:
exactly why it's not even worth looking at real estate in irvine nowadays. complete waste of time.
usctrojanman29_IHB
New member
Makes me wonder if the sellers countered back to all the cash offers and told them the highest offer without an appraisal contingency gets the property. But hey, if there are buyers out there that want to outbid current comps by $100k...more power to them.dethman said:
Just curious as to possible reasons why, in this downward or flat trending market, a buyer would pay $100,000 or approximately 15% above the comps in a neighborhood with fairly uniform units?
Non-financial reasons like relatives next door strikes me as remotely plausible, but is it possible they are just THAT uninformed by their realtor as to the comps and pre-foreclosure properties in their area?
Non-financial reasons like relatives next door strikes me as remotely plausible, but is it possible they are just THAT uninformed by their realtor as to the comps and pre-foreclosure properties in their area?
greenpot168_IHB
New member
USCTrojanCPA,
Let's make the theoretical assumption.
If the original 29 grape arbor owner owed 4 years property tax.
or $40,000 property tax.
Then the flipper buy the house in auction.
The trustee sale would not wipe out back tax owed or tax lien.
Since the flipper sell the house less than 60 days.
I would assume the flipper has not paid the back tax $40,000 to county
Now, the new cash buyer offer $835,000 for the house.
During the escrow
Who will responsible to pay 4 years property tax?
The flipper or new cash buyer ?
If cash buyer is responsible to pay 4 years property tax $40,000,
the real cost to cash buyer should be $875,000 total, right ?
Let's make the theoretical assumption.
If the original 29 grape arbor owner owed 4 years property tax.
or $40,000 property tax.
Then the flipper buy the house in auction.
The trustee sale would not wipe out back tax owed or tax lien.
Since the flipper sell the house less than 60 days.
I would assume the flipper has not paid the back tax $40,000 to county
Now, the new cash buyer offer $835,000 for the house.
During the escrow
Who will responsible to pay 4 years property tax?
The flipper or new cash buyer ?
If cash buyer is responsible to pay 4 years property tax $40,000,
the real cost to cash buyer should be $875,000 total, right ?