Wednesday, October 31, 2007

Learning to Market in a Down Market

Recently received two glossy auction publications in the mail from Hudson & Marshall, one for SoCal and one for NorCal. Inside cover reads...."Don't be intimidated by the auction process!"

Background: Over the summer, hubby and I thought we would attend one of the auctions. After we registered (which is how we ended up on H&Ms mailing list) online we started to read more of the details on the auction process, rules, and associated fees. We also tried to browse some of the many listings, but there weren't many pictures and not much info to accompany the listings. Once we realized what a sham the whole thing was, we decided it wasn't worth the trip or waking up the kids (who were napping).

Based on the mailings, it appears they are stepping up their service to generate more interest. The nice glossy is a welcome change from the frustrating experience I had earlier. I believe they were previously operating under the (mistaken) impression impression that$10k - $30k off market would be enough to generate crowds of bidders. We all know how well that worked out for them based on Agent Bubble's diligent follow up (at last report, less than half the properties actually closed escrow).

Again, inside cover reads, "Over 90% of the bids were accepted the day of the auction." I call BS!

The Sacramento auction set for Nov 18th. If anyone attends, please give post a report.


Gwynster said...

OMG do I have a story!

Apparently Mr. Gwynster's new boss (who I'll call Kelso though he really is a terrific guy) went to one of the auctions in Vacaville during the summer out of curiousity.

The opening call by the auctioneer for the crappy tract house was 483k. Everybody laughs. Then this guy in the crowd jumps up and yelled "200 thousand!". The auctioneer is flustered and lowers to 460K and the guy jumps up again, "200 thousand!".

No one bites and there is nervous laughter. The auctioneer kept lowering and there was dead silence except for Mr. 200 thousand. Wasting everyone's time, the house finally sells for 291k with the commision and a PMI buydown paid for by the seller.

I wish I knew what house that was because I'd love Agent to look it up.

Kelso now has a warm spot in my heart - he goes on the Xmas card list.

Gwynster said...

BTW, I dressed as Voodoo Economics today. Grey pinstripe suit, borrowed Mr Gwynster's red silk power tie, and a very big and impressive african mask made from papermache’. My prop is a little black book that says “STANLEY O’NEAL FINACIAL PLAYBOOK” on the outside.

Now to stuff my pockets with phoney mortgage deeds, stock certificates, etc.

“psst ! hey lady, I have house in Florida I’ll sell you real cheap…. ok you don’t like Florida, how about South Sacramento, Bakersfield, or maybe Tucson? OK you’re sour on RE, how about some stock, I have a special running.”

I’ve done this off and on since 88. This seemed a good year to trot it back out again. I already have one person not speaking to me - her husband was a realtor.

This is a great last minute costume if you need one.

Buying Time said...

Very clever...the economists I work with might even be geeky enough to figure it out.

Sippn said...

G - wat about da shoos? Mary Janes?

Sorry I'm baad!