April 25, 2008

Very very clever auction in Redwood City

500 Hurlingame Ave Redwood City, CA 94063

Starting Bid: $179,000
Previously Valued To:* $480,000

Item #: 752
Address: 500 Hurlingame Ave Redwood City, CA 94063
Property Type: Single Family
Year Built: 1958
Square Footage: 1020
No. of Bedrooms: 3
No. of Bathrooms: 1
Total Rooms: 6
Lot Size: 0.05
Occupancy Status : Vacant
Financing Available : Yes

Hey wait a minute… this sounds familiar! Now I remember!

Very very clever!

You see, buy using a ludicrous starting bid like $179,000 approximately 1 million people will show up to with cash and Google stock in hand to buy this house.

Having just been sold on 9/4/2007 for $464,120, and a Zestimate of $535,500, I predict this house will easily clear for $535,500.

What do you think this Hurlingame house will clear for?

(Thanks to Burbed reader Michelle for this find.)

Comments (23) -- Posted by: burbed @ 5:36 am

23 Responses to “Very very clever auction in Redwood City”

  1. mrbogue Says:

    nothing says security like a good chain link fence.

  2. rick Says:

    3Bed + 1Bath = 6 Rooms?

  3. JesusCrispy Says:

    At auction I bet 615K. People do stupid things for stupid reasons in the heat of the moment. God, I love the math questions.

  4. mrbogue Says:

    3 bedrooms, 1 bath, 1 living room, 1 kitchen = 6 rooms.

  5. vfsv Says:

    The data clearly shows we’re headed down.

    The trick may be how many will overlook the trends in actual data, such as what is shown here:
    http://www.viewfromsiliconvalley.com/id410.html

  6. Pralay Says:

    Hey wait a minute… this sounds familiar! Now I remember!
    —————

    Listed in February? Oh, that’s just testing the market. Afterall bay area is the home of smart people. I am sure there was no shortage of offers, even in winter months. And I am sure it will be auctioned over a million.

    And Google? That’s just so yesterday! It’s Facebook now. Just watch out for all the Facebook employees hungry for homes.

  7. ex-sunnyvale-renter Says:

    These house auctions have a depressing habit of ending at asking or slightly above asking. Finally, the barber has entered the room! Haircuts all around!

  8. RealEstater Says:

    Burbed,

    Quit picking on RWC! Give them a break. They’re doing their part to lower their footprint on the environment (look at, only 2500 sq ft lot), and to provide affordable housing for non-management class on the peninsula.

  9. sg Says:

    > Having just been sold on 9/4/2007 for $464,120,

    That was a foreclosure sale.

    The more fun part was the 2005 sale.
    The sale amount was 200K, but the bank gave a loan of 460K. So this was just a refi with a huge amount of cash back. The bank was none other than the then subprime lender Ameriquest, which is bankrupt now.

    The owner did a pretty smart job at robbing the stupid bank.

  10. madhaus Says:

    sg: IrvineHousingBlog has a great expression for what you just described: Homedebtors exercising their “put option.”

    Price goes down? Can’t pay off your mortgage? No problem, jingle-mail!

    But watch out, this house, in the vibrant and dynamic east of Middlefield neighborhood could generate another gang-fight in comments like happened over here.

  11. madhaus Says:

    I just went over to that auction site, and found out the scoop on this house. In almost every room, the preliminary inspection report notes “marks on walls.” Hmmm. EVERY room? Even the garage? What kind of marks, huh?

    ‘m wondering if my comment about this being a gang neighborhood was prescient rather than flip. Also the agent’s description of the ‘hood as “mixed-use” makes me want to place my bid now. I could be living large by setting up a liquor store in the front and handling a drive-through open-air market by the lovely fence.

    Also, if you buy this exciting opportunity, you should know that the current property taxes are delinquent. You’ll owe an extra $4600 plus some substantial late payments to San Mateo county, just $5500 if you take care of it before the end of April.

  12. RealEstater Says:

    madhaus,

    Do you have too much time on your hands, or are you trying to gain a sense of self-worth by playing with a house you can actually afford?

    If you don’t like real estate, and think everything is going to the pits, why do you spend so much time looking at this stuff?

  13. Pralay Says:

    The sale amount was 200K, but the bank gave a loan of 460K. So this was just a refi with a huge amount of cash back. The bank was none other than the then subprime lender Ameriquest, which is bankrupt now.

    The owner did a pretty smart job at robbing the stupid bank.
    ————

    I think the buyer and seller have some connection. One of them is real estate agent (Google her name). They used to milk banks by flipping each other and refinancing. :)

    These two persons has similar kind of transaction here in Mountain View:
    http://www.paloaltoonline.com/weekly/morgue/2004/2004_02_20.sales20.shtml

  14. RealEstater Says:

    Pralay,

    You and Madhaus can start a new a career as a real estate detective. There’s like a totally lack of people in that space right now!

  15. sg Says:

    Pralay, thanks for the link. Madhaus, it seems Realtors are the one who scammed the system most, as opposed to regular sub prime borrowers.

  16. sg Says:

    > think the buyer and seller have some connection. One of them is real estate agent (Google her name). They used to milk banks by flipping each other and refinancing. :)

    People like this should go to jail.

  17. Pralay Says:

    it seems Realtors are the one who scammed the system most, as opposed to regular sub prime borrowers.
    ————

    Another real estate agent, who found more lucrative business than home flipping:
    http://www.mercurynews.com/localnewsheadlines/ci_8955728

  18. Aaron Says:

    You, know I thought “Hurlingame” was just a joke about not being Burlingame. As in, “this neighborhood was so much worse than Burlingame, we wanted to hurl”.

    But it’s an ACTUAL street name in Redwood City.

    That’s reason enough alone for us to pick on it RealEstater. And why don’t you start a new career as biased web commentator with ulterior motives – we need a lot of those right now!

  19. MSG Says:

    ^^ hahaha, yeah, I thought the same thing.

  20. MSG Says:

    A little bit old, but this should be posted:

    http://blogs.marketwatch.com/greenberg/2007/12/straight-talk-on-the-mortgage-mess-from-an-insider/

    Mark Henson is a mortgage veteran on the wholesale side of the loans. He lives in the Bay Area and is familiar with the real estate markets here. Check his last paragraph:

    One final thought. How can any of this get repaired unless home values stabilize? And how will that happen? In Northern California, a household income of $90,000 per year could legitimately pay the minimum monthly payment on an Option ARM on a million home for the past several years. Most Option ARMs allowed zero to 5% down. Therefore, given the average income of the Bay Area, most families could buy that million dollar home. A home seller had a vast pool of available buyers.

    Now, with all the exotic programs gone, a household income of $175,000 is needed to buy that same home, which is about 10% of the Bay Area households. And, inventories are up 500%. So, in a nutshell we have 90% fewer qualified buyers for five-times the number of homes. To get housing moving again in Northern California, either all the exotic programs must come back, everyone must get a 100% raise or home prices have to fall 50%. None, except the last sound remotely possible.

    What I am telling you is not speculation. I sold BILLIONs of these very loans over the past five years. I saw the borrowers we considered ‘prime’. I always wondered ‘what WILL happen when these things adjust is values don’t go up 10% per year’.

  21. Who is going to the house auction in San Jose Convention Center? [Burbed.com] Says:

    […] not sure if people noticed from yesterday’s post, but there is an auction at the San Jose McEnry Convention Center tomorrow (4/27) at […]

  22. rick Says:

    Aaron,

    Those careers are plentiful but are getting slimmer to survive. And they could not find other jobs.

    I heard one of them is becoming a high tech guy, so strange, as a lot of “hi-tech” guys with no degree in engineering go into real estate after the bust.

  23. Pralay Says:

    Those careers are plentiful but are getting slimmer to survive.
    ———-

    Yes, they are still plentiful. For example this guy, Tom Adkins, lying in broad daylight.
    http://www.youtube.com/watch?v=Sicyi17cT2c


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