Sunday, October 07, 2007

The "Auction" House...

UPDATE: Check out the comments. Apparently this whole "auction" gimmick is going on in Manhattan Beach too.

I'm just back from visiting the "auction" house on Valleyheart. I have quoted the word auction because, as it turns out, it's not really an auction. Yeah. It's a cheap gimmick.

Despite the fact that it says: "Will be sold to bidder with best reasonable offer" they are reserving the right to pull it back if they don't think any offers are "reasonable." I say: if you are opening up the bidding at $589k, anything over that is "reasonable." They disagree and say they will pull back. But! Let's not forget they took out an ad that was phrased much less conservatively. It said in the paper that the home WILL BE SOLD to the highest bidder. And, this being Los Angeles and all, I wouldn't be too surprised if somebody sued.

Anyhoo, so far, their highest bid is $605k (recall that the last sale was at $600k). I doubt it will go higher than that because why bother bidding if they aren't necessarily selling. Ridiculous.

Also, I love that they printed out all these "comps" that are not comparable in any sense of the word. This is a two bedroom house, yet every other sale they present to you as comparable is a three bedroom house.

The house itself is right across the street from the 101. It is very loud despite a large and obvious sound wall. The neighborhood itself is confused. It's a mix of older not very well maintained tract houses with 1970's model RVs parked out front and McMansions. Basically, this aging freeway adjacent neighborhood got hit by gold diggers during the boom and they've all packed up and left the neighborhood with one foot in each world.

14749 VALLEYHEART DRIVE, Sherman Oaks, CA 91403

8 comments:

dave_socal said...

Sounds about right! Sellers are getting nervous with this market. They'll try any trick to get yesterdays price. Next!!!

anonymous #01 said...

The lady and I hit open houses all day yesterday. It was great fun. I loved looking at the sign in sheet and then I ask how the open house was going. "Oh, there is a lot of interest in this property," is what the agent says but the sign in sheet is empty. When I mention there is a house down the street selling for $100K less I get the, "Well, that's not as nice as this one...look at the updated cabinets." Personally, when someone updated their 1960s house with 1980s cabinets I suppose they are updated, but not a selling feature.

While this particular home in Woodland Hills was "updated" and generating "a lot of interest" it has been listed for over 120 days.

When do you think sellers will begin to understand this: it's the price, stupid!

MBWatcher said...

We have a house in Manhattan Beach that has bounced on and off the MLS for 18 months and has twice announced "auctions" like this where the house WILL BE SOLD, with no qualification about how it might not. But neither "auction" resulted in a sale, to my knowledge. GIMMICK.

Anonymous said...

Doesn't surprise me. People talk about dishonest lenders and real estate agents, and they're right. But it does a lot deeper than that. Everyone's a fraud artist when it comes to California real estate.

Anonymous said...

Not to mention that this house most likely will be razed once the 101 freeway expansion is eventually given the green light.

l.a. guy said...

Anyone know what the 'winning' bid was?

Anonymous said...

"But it does a lot deeper than that."

You're right, buyers are getting crookedy as well. Don’t' know which ones are worse.

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