Sunday, December 16, 2007

Portland Home Auction by REDC and Buena Vista Homes




I stopped by the auction today to see how it was going. The room was actually quite full. I watched for about 30 minutes and took a few notes on what places were selling for to get an idea of how far out of market value current list prices are. Assuming the 'previously valued at' on the price sheets we were given is current list price, I have found that the homes were selling on average around 75% of the previously price. This includes a 5% fee that the auctioneer tacked onto each sale. A hefty profit for the auctioneer considering the work involved!

This was mainly for homes within the portland suburban area but NOT considered downtown. Also, this is not a large or statistically significant (>30) sample. However, it would be enough to influence the amount I would pay for a home in the pdx suburbs. To add creedence to the value, a number of economists seem aligned with this current overvaluation of the market. I've read quite a few who have expected that if people cut prices ~20% the market would pick back up.

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NeighborhoodSq. Ft.Sold w/ 5%prev. val% of prev. val$/sq.ft.
hamilton ridge261624675039200062.95%94.323
hamilton ridge2332246750361950 68.17% 105.81
jcksn hills pII3581 456750 529950 86.19% 127.55
vista heights2550 34650046595074.36% 135.88
sunrise hts 2935 367500 487950 75.32%125.21
lincoln hts2550 341250424950 80.30% 133.82
avg. 2761 334250443792 74.55% 120.43

1 comment:

kate said...

The 'previously valued' is usually the highest price the home was at one time (probably the price the seller paid for it before it foreclosed), so since the makret has been falling the prviously valued price is not an accurate price for what the house would sell for now - especially since foreclosed houses are not usually in perfect condition.

I'm trying to find out if the people who win the bids are having problems with 'subject to seller approval'...meaning is the reserve amount much higher than the starting bid and if you don't meet the reserve do you lose the house?