patrick.net

E-man says

In short, if you're not willing to compete, don't even bother to show up. There are about 30 to 40 parties at the steps on almost every given day.

I caught that Storage Wars show, and their mentality is...

"Well there's nothing in this storage unit I'm interested in, but I'll bid it up to screw the other guy over that really wants it."

We're a petty wretched nation, I say we reinstate the potential of a good ole fashioned Assbeating, with out the possibility of it becoming a CNN front page story, and 5 years of anger management and probation. There's a lot to be said for respect for other people.

Or everyone's highest bid after an auction, should have to be paid into escrow and left there for up to 30 days. That would put a stop to clowns that have no intention of actually wanting to win, other than drive the price up for the other assholes.

ptiemann says

with the expectation of big-time appreciation in the next 12 months.

Seriously? Guys going to the auctions expect that?

ptiemann says

This one sold today at auction for $428k.

I am not familiar with Sunnyvale market but seriously how much can you expect to appreciate in that short time period of 12 months?

CaptainShuddup says

"Well there's nothing in this storage unit I'm interested in, but I'll bid it up to screw the other guy over that really wants it."

They don't do that just to be assholes. The mentality is if someone has X dollars and you make them spend almost all their money on a storage unit / property, they will have less money to compete with you on future storage units / properties.

CaptainShuddup says

"Well there's nothing in this storage unit I'm interested in, but I'll bid it up to screw the other guy over that really wants it."

The logic here is if I get the other guy to over spend on this unit, they may not have enough money to bid if a really good unit comes up. This may work with normal buyers where they don't have a lot of money to throw around, but Jarrod's net worth is over 700k, Darrell and Dave several million and Barry Weiss has more money than all of them combined. making a competitor over pay by a couple of hundred dollars isn't going to break the bank on any of them.

bubblesitter says

you obviously have no clue how these auctions work.

Question, they are not really held on the court house steps are they? It would seem to make more sense to hold them inside the building.

ptiemann says

The price at auction? $428k!

Do you think it's possible there are less savvy investors coming in, or even "regular folks" trying to get what they think is a deal on an owner-occupied for themselves? I know there are folks that talk about this as a way to beat the market - I generally just think to myself, "bless their hearts".

At the San Mateo courthouse I have seen two things lately: more people who don't look to me like they are the usual investor suspects, and Occupy protesters.

Maine/NH not seeing courthouse auctions. Auctions usually take place at the end of the driveway of the house. Most all properties are underwater owing more than what they are worth. Bank always buys it back for what is owed. So buying at auction isn't really worth it.

Sample Auction:
Home Value: $150,000
Mortgage owed: $250,000
Sold to highest bidder, the bank, for $250,000

Its easier to let the house rot another year or two, knock another $100,000 off the price and then place a bid once it hits MLS.

ptiemann says

The flippers of the past 3 years are beaten by buy-and-hold investors/ appreciation speculators. For the near future (12 months) this will further reduce inventory.

The retail buyers will find less flips with new granite and pergo floor. Not that there will be more unimproved houses.
This will probably lead to further rising prices until the system breaks. (???)

It will be interesting to see how that is going to play out. From what I hear you can still get a really good deal at the Auction House.

Some folks simply borrow at high interest rate to buy at AH, buy and refi right after.

permanent_marker says

what is the scene at court-house auctions?

Gathering place for bottom feeders and then come to pat.net and complain about being outbid. :)

bubblesitter says

Gathering place for bottom feeders and then come to pat.net and complain about being outbid. :)

Oh please, you are a "bottom feeder" in waiting yourself. Circling the dying animal on a daily basis waiting to feast. Problem is, you will wait too long and end up with rotten meat.

E-man says

Appraisal has been an issue & will continue to be an issue for the near foreseeable future due to rapid appreciation.

I looked at the appraisal reports on a couple of properties I closed on in the last couple of months. I couldn't believe the appraisers would stick their neck out, or is it a fact?

I was like "WOW". These guys' bosses won't like it when looking at their appraisal report.

I know very little about the appraisal business & its workings. Why is price appreciation an issue for appraisers? Sorry if that's a dumb question.

I wouldn't call everyone there a bottom feeder. I know some folks who bought their residence at the courthouse steps because it was cheaper than buying someones flip.

@Patrick,

I ran into permanent_marker at a park more than a decade ago. His daughter and my daughter were about a couple years young then and were playing the swing sets. We chatted for a bit, and he asked about my occupation. I told him what I do. After a short chat, he asked “Are you Eman on Patnet?” 😂

A couple weeks ago, I was practicing pickleball with a friend. He showed up with his 2 daughters. I asked if he’s waiting for a court. He said yes. Told my friend to give up the court for them. Small world.

@Eman That's great!