Turtle Ridge 3200sf SFR for $850k

NEW -> Contingent Buyer Assistance Program
irvinehomeowner said:
So it originally listed for $1.7m and now it's down to $850k:
http://www.redfin.com/CA/Irvine/55-Valley-Ter-92603/home/5900231

The catch? It's one of those REX auction listings.

This is why I say list price isn't wholly indicative of actual valuation.
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a year ago i went to a "underpriced auction home" in aliso... lots of people, i put an all cash offer for more than the listing price... they wanted more, and ended up not selling it to anyone... and put it back on the mls for what they really wanted it for... it was only ~20k (or about 5%) more than the highest offer!!!  don't know what they eventually sold it for but this statement in their description doesn't mean jack..

"HOME WILL BE SOLD TO THE BEST BUYER/OFFER WHO PLACES A BID/OFFER ON THAT DAY ONLY. .. "
 
REX doesn't actually sell the home to the winning bidder, right?  I remember placing a bid a REX home and all they did was contact everyone the day after the auction to tell them that they need to pay X amount to get the home.  I don't think the house ever sold.  All REX does is generate buzz.  I feel sorry for the young couple who show up to these things who actually think they can buy a home like this for 850k.
 
I hope those people who think they can get this property for less than $1m don't waste their time trying to write up an offer because there's no way the seller will accept it.  This auction stuff is stupid...the only good auctions are those at the county courthouse for the trustee auctions.
 
So what is the purpose then? Is it to attract buyers like an auction to bid and the seller has the choice to accept the highest or walk away?  Sounds kinda silly if you ask me :-)
 
Cheap tactic by desperate people trying to sell a product in a declining market. This is no better than when Tustin Mazda invites me over for free hamburgers, and raffle tickets.
 
IndieDev said:
Cheap tactic by desperate people trying to sell a product in a declining market. This is no better than when Tustin Mazda invites me over for free hamburgers, and raffle tickets.
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Yeah, but at least you'll get a free hamburger from Tustin Mazda...this joker (errrr...listing agent) won't have any kind of food or beverages for you.
 
Here are the agent-to-agent comments:

**AGENTS PLEASE READ** Home will be AVAILABLE FOR INSPECTION ONE DAY ONLY Sunday, August 14th from 11AM to 4PM and sold to a buyer who attends the auction. THE ONE PAGE BID FORM USED AT THE PROPERTY AUTOMATICALLY REGISTERS YOU AS THE AGENT (and protects your commission) EVEN IF YOU ARE NOT AT THE AUCTION. You will be asked to submit an RPA when the bid is accepted. Commissions will be paid only to winning bid. NOT a short sale, foreclosures or probate. Seller insists no showings prior to sale date. Seller will consider all offers over the listed price. Price may be reduced prior to sale date.
 
USCTrojanCPA said:
IndieDev said:
Cheap tactic by desperate people trying to sell a product in a declining market. This is no better than when Tustin Mazda invites me over for free hamburgers, and raffle tickets.
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Yeah, but at least you'll get a free hamburger from Tustin Mazda...this joker (errrr...listing agent) won't have any kind of food or beverages for you.
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Tustin Mazda also gives you an extra raffle ticket with a chance to win a Mazda 3 if you take a test drive.
 
USCTrojanCPA said:
Nous said:
That almost makes it sound like they are going to try and sell it.
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I'll bet you a hamburger that they'll increase the list price back to $1.7m after the "auction."
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Lol, no thanks, the only time I bet is when I know I will win.
 
What would be the point then?  If I were looking for a 900K house, I don't think I could be "convinced" to then spend double  *shrugs shoulders*

Sounds like a waste of time for everyone including the sellers and the agent
 
USCTrojanCPA said:
Nous said:
That almost makes it sound like they are going to try and sell it.
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I'll bet you a hamburger that they'll increase the list price back to $1.7m after the "auction."
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How? it says it will be sold to someone who attends? What if 30 people attend and the highest bid is 1 million :-)
 
frank69m said:
How? it says it will be sold to someone who attends? What if 30 people attend and the highest bid is 1 million :-)
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Because they have an out, in the description it says:
THE LIST PRICE IS THE RESERVE OR MINIMUM BID SUBJECT TO THE SELLERS ACCEPTANCE.
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That's my complaint about these "auctions"... very misleading... by definition of "reserve" and "minimum", the item must be sold at that price if that's the highest bid.

I've talked to these guys, they say why they do things this way is because the seller doesn't want their house on the market very long and they don't want agents/buyers coming through their house anytime... so they do this one time thing and sell to the best offer. The problem is, the best offer may not always pan out and then the house gets relisted normally anyways.
 
Good catch, its very EBAYish in their terminology and you never know what the reserve bid is unless you personally exceed it.
 
From the REX website, it sounds like the company really strives to utilize this auction method and wants their sellers to take the highest offer that day.  I think they get frustrated with sellers who dont take the top offer of the day and try to see if they can get better down the road.  See this line from their website:

"In every case where a home seller decided to cancel their agreement and list their home with some other real estate company hoping to get more money, the result has been the same. Not one of them has sold their home for more than we were able to achieve at the One Day Sale."

I dont think the company has a bad business model but the challenge is getting sellers to realize thats the best they can get. 
 
At least they haven't lowered the list price every day up to the auction date like they've done on previous ones.

Although... they may lower one more time before Sunday to trigger any canned searches.
 
irvinehomeowner said:
At least they haven't lowered the list price every day up to the auction date like they've done on previous ones.

Although... they may lower one more time before Sunday to trigger any canned searches.
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Hehe.  They just lowered it to 849k
 
we wont be able to make it but i hope someone from TI goes there this sunday and reports back
 
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