Archive for January 22nd, 2008
So Sue Me
January 22, 2008
Have you heard? Maybe not. It’s a story that’s making the rounds in the blogosphere. I don’t spend a heap of a lot of time in the blogosphere, this came to me by way of my dad. Here, check it out:
[From Feeling Misled on Home Price, Buyers Sue Agent - New York Times]
Great! That’s just what we Realtors need right now. Now, I’m not saying that some Realtors don’t deserve to be sued, and maybe they even be deserved to be sued for things they’ve told their clients about the future value of their real estate purchase. As I drive around in Watsonville and see house after for-sale house, and I see all the wave of foreclosures and short sales wreaking havoc on the community, I can’t help but think that yeah, there must be a few bad apples out there in Realtor and mortgage broker land.
I guess whatever poor Realtor sold that home failed to provide his clients with the handy “Market Conditions Advisory” form provided by our good friends, the California Association of Realtors. This advisory states, in part:
Real estate markets are cyclical and can change over time. It is impossible to predict future market conditions with exact accuracy … In a less competitive or “cool” market there are generally more sellers than buyers, often causing real estate prices to level off or drop, sometimes precipitously. In light of the real estate market’s cyclical nature it is important that buyers understand the potential for little or no appreciation in value, or the actual loss in value, of the property they purchase.
That pretty much sums it up! Too bad this form isn’t actually required. I’ve never used it. It’s not one of the forms on the checklist we need to close the file after escrow. Note to self: start getting buyers to sign this form, especially the ones I think might turn around and sue the bejesus out of me. 
Posted by SantaCruzBroker at 11:26pm
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A Sign of the Times - Foreclosure Auctions
January 22, 2008
Yesterday I was out and about, checking on some listings down in Watsonville. I drive into one condo complex that has been especially hard hit by foreclosures and short sales - there are over a dozen units for sale in a complex that probably doesn’t have more than 75 units in it. Right as I drove up the main road, what should my wondering eyes should appear, but this sign, nailed to the garage door of the unit:
Wow. That is something you definitely don’t see every day. It’s a sign of the times, that’s for sure. This unit had previously been on the market for some months, listed as an REO. When it first went on the market, it had an OK price, but the lender/owner (your good friend and mine, Countrywide) did not cut prices quickly enough to keep it competitive in the market, and now it’s on the auction block.
Well, being the Internet-savvy Realtor that I am, when I got back to my office I hopped on the web site, to see what the scoop was. It seems that this auction company is holding a huge auction on February 23. They are auctioning off six properties in Santa Cruz county, and hundreds more from other parts of northern California. Here’s a link that shows what they’re selling in Santa Cruz County:
US Home Auctions - Santa Cruz County
There are a number of details (that’s where the devil lives!), of course - but they are all explained on the web site, just hunt around. Some details are that you need a $5,000 cashier’s check to bid, and you must bring your checkbook because you will need to put down a 5% cash deposit.
I was talking to a colleague of mine about this at our Tuesday office meeting, and he said he knew about this because he saw a similar such sign posted on one of the other properties they are auctioning off. He said he had been to one of these auctions previously, when one of these very same properties did sell, but the deal must have fallen apart, because here it is back at auction again. He also said that the winning bid was about 4 times higher than the opening bid.
It certainly is an exciting time to be in Real Estate!
Posted by SantaCruzBroker at 1:22pm
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