An Orangeburg homebuilder looking to sell two newly built luxury homes and 13 one-acre lots in the High Gate Estates subdivision in Pomona has hired a real estate auction company to liquidate the unsold inventory. John Lynn, owner of JWL Construction, owed the decision to a career change rather than anything to do with the real estate market, which by many measures has slowed considerably.
"Sales have been pretty good," Lynn said. "Except for the last couple of months." Lynn, who has three employees, will continue to build some homes in the county. But after 25 years in the business, he's set his sights on a new livelihood.
"I'm a commercial pilot now," he said. "It's something I always wanted to do." Lynn said he hired an Auction company, to unload the unsold homes and lots because "it's a quick and decisive way to market property that I really have never tried before."
Lynn likened the process to eBay, the popular online auction Web site, and said he hoped the process would give his properties exposure that they otherwise would not get.
Unlike eBay's Internet auctions, however, Express the auction company liquidation of the properties will be held at a specific time and place: 1 p.m. Sunday at 27 High Mountain Road, which, at 6,600 square feet, is the larger of the two two-story Colonials that Lynn is looking to unload. Lynn said the 85 percent success rate of the Auction claims has him hopeful that his inventory will get sold quickly.
"I'm going to give it a shot and see how it all works out," Lynn said, adding that he hoped to get some definite buyers and "not just tire kickers."
March 19, 2007
1.1 Million Foreclosures Could Translate to Buyer's Goldmine!
Marni Kottle - SF Chronicle
More than 1 Million homeowners may default on home loans in the next seven years. This projection by First American CoreLogic is a much milder scenario than the one proposed by the Center for Responsible Lending. In either futurist's opinion, it bodes well for investors with cash or merely good cash flow and the ability to purchase these first class properties at reduced prices.
Investors who wanted to run-with-the-big-dogs, to buy, flip, and take the cash, of the past 5 years have hit a snag. As such, they are not concerned with keeping these properties and have a strong motivation to 'get out' as fast as possible.
Auctioneer, Nicholas Varzos, suggests this makes for a remarkable Auction opportunity - both for buyers and sellers. The accelerated marketing of a well run auction will stop the supply and demand balance point to an immediate point in time. This stops the bleeding of the short term investor and allows a new and more responsible buyer the opportunity to get in at a true value price.
National experts suggest that panic or irrational response is uncalled for at this time. The job market is more stable than ever before. And, 1 Million investment losses equates to less than 1% of the total loan portfolio made during the two year study period. What's more, even if the losses come to pass, it will take as long as seven years to transpire. Clearly, plenty of time for the markets to absorb such losses.
Recent sales of homes by the Accelerated Marketing of live Auction seems to prove that the immediate market place is still strong. Buyers have not lost a 'taste' for home ownership. Likely outside pressures may seem to slow the turn-over period, but that aside, when a property goes to the Auction block - it appears that plenty of bidders are anxious to become new buyers.
March 15, 2007
NAA Releases Industry Research Statistics
Harris and Morpace Report Findings
March 15, 2007
$257.2 Billion was sold in the U.S. by live auction in 2006, an increase of 7.1% over 2005. Some of the fastest growing sectors of the industry in 2006 were related to real estate. Residential real estate increased 12.5%: commercial-industrial real estate climbed 9.3%: art and antiquity rose 9.0%; while land and agricultural real estate rose 8.4%.
Harris research also found that 24% of all consumers attended a live auction in 2003, and 57% attended a live auction at some point in their life. Further, some 92% of consumers held a very favorable view of the auction profession.
Also of interest, Harris discovered that 'Fun' is the number one reason consumers attend live auctions. They are looking for something original, unexpected, or exciting and 83% think auctions are an exciting way to get good deals.
Last, 40% of consumers felt residential real estate will be frequently sold through live auctions in the future.
March 9, 2007
Ponte Vedra Beach Auctions
of Real Estate Run Hot Hot Hot!
Ponte Vedra Beach FL.
Buyers and Spectators packed the Waterford Condominium in Jacksonville Beach Fl on Thursday, just like they did on Friday in Ponte Vedra Beach at a Roscoe Boulevard waterfront home.
One internet bidder that decided to 'be at the live event' said, "Great Homes deserve Great Buyer attendance". This auction was hot! The bid pace was fast and everyone, including the photographer from the Jax Times Union thought the auctions were fair, prompt, and well directed.
Auctioneer, Nicholas Varzos, said that his team, assembled from the multi-state Exclusively Auctions was prepared to meet the needs of their sellers to establish an open and safe forum for true market forces of supply and demand to come together to establish sales value. Citing Warren Buffet's 'Tao' philosophy during the auctions of both locations - Varzos asserted to the active audiences that value is much sweeter than short term pricing indicators.
Buyers at both auctions seemed very happy to snap up their new Florida housing purchases and all parties had good feelings about the upcoming markets. For more information and video links to this auction - call Exclusively Auctions at 888.826.7310
February 14, 2007
ORLANDO, Fla., Feb. 15 /PRNewswire/ -- Florida's housing sector continued to mirror the national trend in fourth quarter 2006, reflecting slower sales, stabilizing median prices and higher inventory levels of homes available for sale in many markets. Statewide, sales of single-family existing homes totaled 37,177 during the three-month period, a decrease of 28 percent compared to 51,310 homes sold during the same time a year earlier, according to the Florida Association of Realtors(R) (FAR). Traditionally, home sales often ease during the fourth quarter as a result of holidays, cooler weather and other influences. The statewide existing-home median sales price remained stable at $242,100 in the fourth quarter; a year ago, it was $245,600 for a slight 1 percent decrease. In 2001, the fourth-quarter statewide median sales price was $128,400, which reflects an increase of 88.5 percent over the five-year period. The median is a typical market price where half the homes sold for more, half for less. To gain insight into current trends in Florida's real estate industry, the University of Florida's Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. While acknowledging the adjusting housing market, the fourth quarterly survey results found no evidence of home prices overall dropping long-term statewide. "One important indicator of the real estate market is occupancy rates, and these appear to be stable or increasing in most markets, including apartments, office buildings, retail space, and industrial warehouse and distribution space," said Dr. Wayne Archer, director of UF's Bergstrom Center for Real Estate Studies. He noted that the relative health and growth of Florida's economy provides a strong foundation for the state. "Employment is very good and the fundamentals that drive rental income and occupancy are still very strong," he said. "In addition, interest rates have remained perhaps a little more stable than some people expected." According to Freddie Mac, the national commitment rate for a 30-year conventional fixed- rate mortgage averaged 6.25 percent in fourth quarter 2006; one year earlier, it averaged 6.22 percent. The latest industry outlook from the National Association of Realtors(R) (NAR), calls for a steady rise in existing home sales following the fourth quarter. NAR Chief Economist David Lereah says that while "home sales may appear weak in comparison with the record surge in 2005, they will be sustained at historically high levels that are in line with long-term demand." NAR expects 2006 to finish as the third strongest year for sales after the record years of 2005 and 2004. Looking to Florida's existing condominium market, sales of existing condos also decreased during the quarter, with a total of 10,596 condos sold statewide compared to 15,425 in fourth quarter 2005 for a 31 percent decline, according to FAR. The statewide median sales price for condos decreased 3 percent to $205,200 for the three-month period; a year ago, it was $212,100. Among the state's larger markets, the Miami metropolitan statistical area (MSA) reported 1,828 existing homes sold for the quarter, a decrease of 3 percent compared to the 1,878 homes sold a year earlier. The market's existing-home median sales price decreased 1 percent to $370,400; a year earlier, it was $375,900. A total of 1,694 existing condos sold in the market over the three-month period, down 28 percent from fourth quarter 2005, while the existing-condo median price increased 1 percent to $266,500. The Punta Gorda MSA, one of the smaller markets in the state, reported that 663 homes changed hands in the fourth quarter, down 2 percent compared to 674 homes sold a year earlier. Over the same period, the market's existing- home median home price declined 10 percent to $209,700; a year earlier, it was $233,700. A total of 118 existing condos sold in the market during the fourth quarter, down 28 percent from the previous year, while the existing-condo median price rose 20 percent to $195,000. Two charts showing statistics for Florida and its MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices in the fourth quarter of 2006 to the fourth quarter of 2005, based on Realtor closed transactions from local Realtor boards/associations within the MSAs. The second chart compares the volume of existing condo sales and median sales prices in fourth quarter 2006 to fourth quarter 2005, based on Realtor closed transactions from local Realtor boards/associations within the MSAs. The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its more than 165,000 members in 68 boards/associations.
January 12, 2007
Auction Accelerates response to just 2 minutes and 8 seconds!
December 14, 2006 Ponte Vedra Beach FL
On a cool winter afternoon in Ponte Vedra Beach, FL - Auctioneers from Exclusively Auctions and Agents from Ponte Vedra Beach Realty, led by Broker - Kim Davis, sold the 4 bedroom, intracoastal waterway home of Dr. Robert Springer in just over 2 minutes.
About 75 agents, brokers, guest, lookie-loos, and bidders, sat in the white chairs while the auctioneer smiled, greeted, and offered some convivial banter just prior to 'getting down to business'. Skeptics, critics, and devout believers all held their collective breaths and watched in disbelief as the Roscoe Manor home was quickly hammered for a total $1.760MM.
The buyer, Mr. George Reed, was ecstatic - but not more than his surprised wife, who was celebrating her birthday that very day. Mr. Reed said it just felt right. He knew the home was the perfect gift for his family to share and remember for years to come.
The sellers were equally giddy now that they were able to move on with their lives to Colorado for closer familial needs. Dr. Springer said he was thrilled to not have to wait for a year or more to 'grind out a slow sale'.
More and more, Brokers, Sellers, and Buyers are turning to the accelerated process of auctions to market their most valued asset. For information, call 888 826-7310.
November 15, 2006
Rare Ponte Vedra Beach Waterfront property goes to Auction Block
For the first time that any of the locals can remember in Ponte Vedra Beach, home to the Sawgrass TPC Stadium golf course and many world reknown gold tournaments, a 4 Bedroom, 5 Bath, luxury home is going to be sold to the highest bidder on December 14th via auction!
Headed up by the Doheny Group and local Ponte Vedra Beach Realty, Auctioneer, Nicholas Varzos said that he expects a vigorous and exciting day at the property. Advertising has yet to break and from just Realtor.com and the local MLS, excited agents are reporting 10-20 inquiries per day one month ahead of the actual auction.
"Someone's going to get a fantastic home" said Kim Davis, Broker-Owner of Ponte Vedra Beach Realty. "I tend to agree with the National Association of Realtors (NAR) that auctions are the wave of the future, today." Davis has actually hired a former executive from Merrill Lynch to head up her auction division. Gerard Soriano is so excited about the new venture that he actually considers it a new career opportunity that will likely exceed his former remarkable achievements with Merrill Lynch.
The home valued by Zillow.com at between $1.5MM - 2.4MM is going to be sold to the highest bidder, regardless of any appraisal, valuation, or 'feelings'... it will be sold purely at the value set by the buyers on that day, says Varzos. It's a true reflection of real market value.
The sellers have taken new work in the midwest to be nearer to their families and have already purchased a new home. As far as they are concerned, 'we don't have the time or inclination to wait on a typical 'offer' to sell this great home. We want results now - not in 1 year!"
Bidding will take place at the home itself and prospective buyers can even bid via the web, live during the actual auction. For those that have never attended an auction, this will be a first in Ponte Vedra for such a great home.
Bidders are encouraged to contact their local realtor to get a kit and register to bid on Thursday, December 14th.
July 22, 2006
South Florida sellers turning to eBay
By Pat Beall McClatchy/Tribune: The Palm Beach Post Published July 23, 2006
PALM BEACH, Fla. -- Looking for that dream home? Try scrolling past eBay's "pottery and glass" category to just before "stamps and sports memorabilia." Click on "real estate," enter the keyword Florida -- and stand back. On a recent Monday, the online auction house listed 528 Florida real estate and time-share properties; about three out of every 10 on the auction block were in South Florida.
Few were as exotic as the poultry farm offered, complete with 59,000 hens. And many were ads designed to pique the curiosity of bargain-minded browsers. "It just gets worldwide exposure," said the seller of a three-bedroom, 2 1/2-bath Tequesta townhouse advertised for $350,000. That would help explain why eBay is flush with time-share ads. After all, time shares and vacation homes typically are marketed to out-of-towners, so international Web hits are a plus. But plenty of South Florida sellers clearly are looking closer to home. And some are willing to sell in bulk.
Similarly creative online sales tactics aren't confined to eBay. Of course, not all auctions spin rooftops into gold. With only four more hours left to bid, a Jensen Beach time share topped out at $860, less than the annual maintenance fee. The initial asking price on a Delray Beach condo was a blushingly modest 99 cents.
July 19, 2006
Bidders snap up properties
Wednesday, July 19, 2006 9:53 AM EDT
Four of seven properties on which delinquent taxes are owed sell at the county's fifth annual tax auction.
ADRIAN - It took three years of delinquent taxes for properties to get into Lenawee County's annual auction on Tuesday where bidders snapped up four of the seven pieces of real estate within minutes.
Nineteen bidders from Lenawee County, Manchester, Brooklyn and as far away as Bingham Farms signed up for the fifth annual auction conducted through the Lenawee County Treasurer's office by the private firm SRI Inc. of Indianapolis. Two of the four parcels that sold brought in significantly more money than was owed in back taxes.
A house at 505 Seneca St. in Tecumseh with a $17,253.30 delinquent tax bill sold for a high bid of $58,000. A house on Tabor Street in Adrian went for a $28,000 bid, more than five times the $5,437.16 that was owed in taxes. Excess cash from the sales is restricted by state law to a fund that helps pay the costs of administering the tax forfeitures and sales.
Two other properties sold for the amount of the tax bills owed on them. One is a vacant commercial building at 147 Carey St., Deerfield, that found a new owner for $7,552.56. A vacant lot on Eagle Street in Medina went for $793.68. Three properties that drew no bids Tuesday will be offered up in another auction in September, again with delinquent tax bills as the minimum sale amounts. One is a vacant brick storefront building at 306 W. Main St., Hudson, with a $5,399.94 tax bill. The two others are vacant land, one being a lot on James Street in Adrian with a $10,060.40 tax bill and the other a narrow strip on Hayden Court in Raisin Township that has a $429.15 tax bill.
The auction process here is becoming smoother after going through it five times. The first two auctions in Lenawee County each included two years' worth of properties with delinquent taxes as the forfeiture law went to effect. ?Nothing would have been harder than that first year when we sold two years of properties,? Maillho said. ?It never gets easy,? said treasurer Marilyn Woods. ?The idea of selling someone's property never gets easy.?
Efforts are made each year to help owners pull properties off the sale list and pay off the tax debts, Woods said, leaving few pieces of real estate on the auction block.
July 19, 2006
Denver Real Estate Market Remains Hot Investors continue to plow capital into the metropolitan Denver real estate market. In the first six months of this year, $2.3 billion worth of commercial properties sold, compared to $3.2 billion in sales for all of 2005, according to a Cushman & Wakefield report. Of the $2.3 billion in transactions, roughly $450 million of the sales were portfolio deals. Private and institutional investors from the United States and abroad snapped up local properties, with five office buildings selling for more than $100 million each.
Minneapolis Apartment Market Improves The apartment vacancy rate has dropped to 4.8 percent in the seven-county Minneapolis metropolitan area, according to a report by GVA Marquette Advisors. That's down from 6 percent for the same period last year. Rents have increased to an average of $860, a $12 increase from least year's average of $848. The vacancy rate is lowest, at 3.9 percent, for units between $800 and $900 a month. The highest vacancy rate of 8.8 percent is for those over $1,500, a segment where demand was flat from last year.
Hotel Occupancy Could Dip in 2007 Next year, Hotel occupancy is expected to grow at a 1.4 percent pace, but new supply is expected to increase by 2 percent next year, according to PKF Hospitality Research and Torto Wheaton Research. That would result in a dip in nationwide occupancy, following three straight years of growth. Hotel occupancy level is forecast to be a rather healthy 68 percent next year. While that's down slightly from the 68.4 percent projection for this year, it is well above the long-term average of 66.4 percent. And 24 out of 52 markets are expected to experience an increase in occupancy, despite the overall national decline.
Hawaiian Office Market Remains Strong The office vacancy rate in Oahu, HI has fallen to its lowest point in 15 years, while rents have increased more than 10 percent since the end of 2004, according to the midyear Office Market Report by Colliers Monroe Friedlander. Oahu's vacancy rate fell for the 12th consecutive quarter since the summer of 2003, when it was 13.8 percent. Colliers also predicts the vacancy rate will fall to roughly 7.2 percent by the end of this year.
Austin Office Market Continues to Improve Colliers Oxford Commercial, Inc. has reported that the office market in Austin, TX continued to improve in the second quarter. Rents have increased to $21.19/sf, compared to $19.40 this time last year. In addition, the average rents in the class-A market were $23.92/sf, compared to $21.15 a year ago. While overall occupancy has improved by nearly a percentage point, to 82.0 percent, absorption suffered because about 185,000 sf of space was introduced to the market. That resulted in negative net absorption of about 100,000 sf.
Denver Real Estate Market Remains Hot Investors continue to plow capital into the metropolitan Denver real estate market. In the first six months of this year, $2.3 billion worth of commercial properties sold, compared to $3.2 billion in sales for all of 2005, according to a Cushman & Wakefield report. Of the $2.3 billion in transactions, roughly $450 million of the sales were portfolio deals. Private and institutional investors from the United States and abroad snapped up local properties, with five office buildings selling for more than $100 million each.
Minneapolis Apartment Market Improves The apartment vacancy rate has dropped to 4.8 percent in the seven-county Minneapolis metropolitan area, according to a report by GVA Marquette Advisors. That's down from 6 percent for the same period last year. Rents have increased to an average of $860, a $12 increase from least year's average of $848. The vacancy rate is lowest, at 3.9 percent, for units between $800 and $900 a month. The highest vacancy rate of 8.8 percent is for those over $1,500, a segment where demand was flat from last year.
Hotel Occupancy Could Dip in 2007 Next year, Hotel occupancy is expected to grow at a 1.4 percent pace, but new supply is expected to increase by 2 percent next year, according to PKF Hospitality Research and Torto Wheaton Research. That would result in a dip in nationwide occupancy, following three straight years of growth. Hotel occupancy level is forecast to be a rather healthy 68 percent next year. While that's down slightly from the 68.4 percent projection for this year, it is well above the long-term average of 66.4 percent. And 24 out of 52 markets are expected to experience an increase in occupancy, despite the overall national decline.
Hawaiian Office Market Remains Strong The office vacancy rate in Oahu, HI has fallen to its lowest point in 15 years, while rents have increased more than 10 percent since the end of 2004, according to the midyear Office Market Report by Colliers Monroe Friedlander. Oahu's vacancy rate fell for the 12th consecutive quarter since the summer of 2003, when it was 13.8 percent. Colliers also predicts the vacancy rate will fall to roughly 7.2 percent by the end of this year.
Austin Office Market Continues to Improve Colliers Oxford Commercial, Inc. has reported that the office market in Austin, TX continued to improve in the second quarter. Rents have increased to $21.19/sf, compared to $19.40 this time last year. In addition, the average rents in the class-A market were $23.92/sf, compared to $21.15 a year ago. While overall occupancy has improved by nearly a percentage point, to 82.0 percent, absorption suffered because about 185,000 sf of space was introduced to the market. That resulted in negative net absorption of about 100,000 sf.
July 14, 2006
Home auction the next big thing
Before long, going-going-gone may be as common as multiple listings
By DANIA AKKAD
Herald Salinas Bureau
Going once, going twice. Sold... by auction: Houses. It should come as no surprise in an era when a grilled cheese sandwich bearing the image of the Virgin Mary sells for $28,000 on eBay that the real estate market would turn to the auction gavel. What worked for the grilled cheese, say some real estate investors and agents, may just be the next big miracle in home sales.
"You know how you've always heard about some of these movie stars -- he's an overnight success after 20 years in the business?" said the chairman of the National Association of Realtors auction forum. "The auction is like that." Last weekend in Florida's panhandle, where he works, he held a live auction for a 15-acre horse ranch. It sold in nine minutes.
"When you can generate that kind of a frenzy, a circus atmosphere," said a Chicago Auctioneer who lectures about real estate auctions around the country, "you create a want, a mentality of 'If I don't buy it, they will.'" And in a real estate market that has slowed, auctioning brings a new speed and fervor for owners who don't want to let their homes sit for weeks and months. On Sunday, Janssen's Abbey Management is auctioning off a home at 20 Santa Rosa Ave. in Salinas. He said the house appraised at more than $590,000. Starting bid is $429,500. This auctioneer, who runs his company out of his Monterey home, has been investing in real estate for years and started auctioning homes in Utah, Oregon and Nevada, particularly in Las Vegas. This will be his first home auction in Salinas.
"Some of (the houses) go at market price. Some of them go above market price," he said. "It just depends on who is drawn to the auction." Unlike real estate agents, Janssen doesn't have a real estate license, but he said he does own a portion of the property. And that makes the auction legal, said Tom Pool, spokesman for the California Department of Real Estate. "If they are disposing of their own property," Pool said, "you don't need to be licensed."
The auction has been advertised as a trustee sale, but Janssen said there is no bankruptcy or foreclosure involved with the Salinas house. Abbey Management is the trustee, he said, but he was unclear who the trustor was and said he would have to look at some documents to figure that out. Janssen initially advertised that he would be giving a portion of the proceeds to the Make-A-Wish Foundation, but on Wednesday, Greater Bay Area Make-A-Wish Foundation Executive Director Patricia Wilson said they had no idea Janssen was planning on donating money to the organization -- or using its name in advertisements and on Abbey Management's Web site.
"This is a first. This is just unprecedented," Wilson said. Janssen said he didn't realize he needed to fill out agreements with the organization to use its name and give donations. He was just trying to be a nice guy, he said. "It was really a passing comment that I wanted to make a contribution towards them," he said.
He has since decided to donate a portion of the sale proceeds to the Sally Griffin Active Living Center in Pacific Grove, where he and his wife are members. On Thursday, they held a pre-auction party and presented a check to the center's executive director, Vivica Lohr. Today and Sunday, Janssen will hold an open house at the home from noon to 5 p.m. Then at 6 p.m. Sunday, a round-robin phone auction will begin. The final price remains to be seen.
What does look promising, said Freedkin and Anderson, is the future of these kind of auctions in the industry. Anderson said the National Association of Realtors and the National Auctioneers Association are now working together to create programs to develop the process, and many real estate agents and brokers may choose in the not-too-distant future to add auctioneering as a specialty in their sales arsenal.
"Not every seller is suitable for an auction. Not every buyer will go through that process and not every property is right for the process," he said. "You just have to find the right blend."
July 9, 2006
Bids on the block
In a shifting market, property auctions are catching on with owners who want a quick sale and buyers hoping to find a bargain: Shades of EBay.
By Diane Wedner, Times Staff Writer July 9, 2006
FANNED by EBay flames, it was bound to happen. As buyers have regained an upper hand and sellers have started to sweat, real estate auctions ? live and online ? have caught on. The changing market has nervous owners trying to sell quickly rather than letting their homes languish while their fears of declining values mount. Buyers, sensing the realty winds shifting their way, see bargains, something they've only dreamed of in the last few years. And then, of course, there is human nature and the thrill of bidding competition.
It happened recently, "Who'd like to open up the bid at $100,000? Do I see $100,000? Over there! Who wants to bid $125,000?" Minutes later, after a rat-a-tat-tat of climbing offers for a condo, investment partners and auction veterans Robin Morgan and Miriam Wimberly came up with the winning bid of $436,000. "I think we got a bargain," Wimberly said. Agents say that comps for the two-bedroom, 2 1/2 -bathroom condo in 1,023 square feet suggest the sale price was right on target for the neighborhood.
Fueling the auction trend too is the higher comfort level most Americans feel using the Internet, which allows them to take virtual tours of homes they're interested in and to practice their bidding skills on EBay. "EBay is the greatest thing that ever happened to our industry." It has legitimized auctioning as an acceptable form of commerce to the masses, he explained.
More accepted as a way to sell real estate on the East Coast, the trend has taken longer to capture an audience in the West, where buyers have considered home auctions as the last-chance route to a home sale. "So many people here think auctions are only for distressed or really bad houses," a real estate auction franchise company. Most homes sold at auction, she said, get there because sellers chose to sell them that way. How popular has the home-buying niche of auctions become? Gross sales of residential properties rose nationally to $14.2 billion in 2005, up 24% from $11.5 billion in 2003, according to estimates reported by the National Auctioneers Assn., an auctioneering trade group.
The two most well-known types of auctions are "open outcry," in which an auctioneer calls out the bids to the public, and sealed-bid auctions, in which all bidders submit their offers to the auctioneer on the same day, without knowing the bids of other participants. Online auctions also are gaining steam.
In the first two cases, the properties are offered under the following methods: absolute, in which the highest bidder wins the property, no matter the price; "published reserve," or "minimum," bidding, in which the seller and auctioneer have agreed to accept the published minimum bid or higher; and "unpublished reserve," in which the high bid is subject to the seller's acceptance.
Some open-outcry auctions also permit bidding by telephone, proxy and Web-cast bidding.
Inspect, then bid
Auctions for condos, condo-hotel units and fractional ownerships, in particular, are gaining traction among builders and home buyers. Some buyers love the transparency of auctions. Unlike the traditional way of selling a home ? in which buyers first make a bid, sign a sales contract, then pay for the home inspections ? auctions let them do their homework before the sale. Auction companies typically allow 45 to 60 days for buyers to attend open houses and in some cases bring their own inspectors. Other buyers dislike that they must spend time and money upfront on reading title reports and hiring inspectors, without a guarantee of winning the property.
Owners, for their part, like that they can sell their properties without financial, cosmetic or termite contingencies. On the downside, properties that are not aggressively marketed by auction companies may result in just a few low-ball offers.
The 70 or so bidders at the Pasadena condo auction, braving 100-degree temperatures, vied for a small unit that could generously be described as Cinderella before her fairy-godmother makeover. The unit was part of a cluster of probate sales that weekend. Probate auctions ? where the owners have died and the properties are sold, usually subject to court approval ? make up about 30% of residential real estate auctions, Wohl said. The rest are private-owner sales and foreclosures.
The potential buyers flowed in and out of the condominium, checking out the stained carpets, tired bathrooms and dated kitchen, small bedrooms and tiny built-in bookshelves before gathering in front of the building for the bidding. The auctioneer tersely reminded bidders to use their auction cards to bid and kept the proceedings moving briskly.
July 8, 2006
Cooling Home Market Spurs Interest in Foreclosure Sales
Reliability Is Often a Problem Among Web Sites That List Properties Seized by Lenders
By RUTH SIMON July 6, 2006
Rising interest rates and a cooling housing market are whetting the appetite of real-estate bargain hunters and fueling interest in Web sites that list homes in, or near, foreclosure. Economists expect delinquencies and foreclosures to increase from today's historically low levels. Nationwide, the percentage of home loans on which payments were past due fell to 4.41% on a seasonally adjusted basis in the first quarter, after rising to 4.70% in the fourth quarter of 2005, according to the Mortgage Bankers Association.
A variety of Web sites have sprung up to cater to home buyers and investors looking to purchase properties in or nearing foreclosure. They include RealtyTrac.com, which ranked seventh among real-estate Web sites in terms of unique visitors in May, according to comScore Media Metrix, a unit of comScore Networks Inc. Foreclosure.com, another popular offering, not only runs its own Web site, but also says it supplies data to more than 200 other Web sites.
You can browse the Web sites at no charge, but getting complete access requires a weekly or monthly fee, typically $40 to $50 a month. The federal government operates its own site, www.homesales.gov, that is free and provides information about foreclosed properties being sold by the Federal Housing Administration, the Veterans Administration and the U.S. Department of Agriculture.
To see how these Web sites work, we checked the government site and three for-profit alternatives, RealtyTrac.com, Foreclosure.com and Foreclosures.com, for listings in one neighborhood near Atlanta. We also looked at the information each Web site provides and talked to real-estate brokers who specialize in foreclosed properties.
We learned that novices should approach the foreclosure process -- and the Web sites that sell foreclosure listings -- with care. Finding a good buy on a foreclosed house requires hard work and can carry significant risks. Critics say that Web sites selling foreclosure listings often contain outdated information or listings on houses that aren't ready for sale; some try to direct would-be buyers to partners with whom they have a financial relationship or to seminars and other products. "We run into a lot of problems with foreclosure Web sites because a lot of the houses can't be sold" because various legal requirements haven't yet been met or the lender hasn't readied the property for sale, says David Benham, owner of Benham Real Estate Group in Charlotte, N.C., which sells foreclosed homes on behalf of lenders.
Keeping the foreclosure listings up-to-date "is always an issue," says Brad Geisen, chief executive of Foreclosure.com. "Not every owner in foreclosure is going to want to sell their home," he adds. In the early stages, "it is a distress situation that is a possible opportunity." Alexis McGee, president of Foreclosures.com, says her site was created to "accommodate investors." The foreclosure listings "are not listed like [multiple listing service] listings," she adds. "We don't check to see if it's sold." Investors aren't the only ones who look at foreclosure Web sites. RealtyTrac says about 20% of its subscribers say they are first-time home buyers. The company estimates that another 20% are looking for their next home or for a second home.
The federal government maintains its own inventory of the properties it owns, while for-profit Web sites gather much of their data from public records such as the county recorder, the tax assessor and the county courthouse. The rules vary from state to state. Typically, properties first appear in the commercial databases when the lender files a foreclosure action with the local court. At this point, the borrower still has options, including working out a payment plan with the lender and selling the property to pay off the debt.
If the problem isn't resolved, the house is put up for auction. Buying at auction can be risky, in part because buyers typically must have cash in hand, can't back out of the sale, have little or no information about the interior of the house and no guarantee that the title to the property is clear. If the property doesn't change hands at auction, the lender typically turns it over to a real-estate broker specializing in the sale of bank-owned properties, who cleans up the yard and makes repairs before putting the house back on the market. Properties are typically priced "at or just below market value," says Cindy Simpson, a vice president with Harry Norman, Realtors in Atlanta.
The federal government's Web site, www.homesales.gov, has the smallest number of listings because it covers only government-owned properties in the final stage of the foreclosure process. Buyers can search by city and by the size of the house they are looking for. For homes sold by the Department of Housing and Urban Development, listings include a photograph of the house and a detailed report on the property and its condition. HUD says it gives priority to people who want to live in the homes. The federal Web site also includes details about buying a foreclosed home from the government and links to more general information about home buying. For the most part, the site was easy to navigate.
The for-profit Web sites cast a wider net; they begin collecting information when a notice of default is filed. Buyers can search by location and by specific criteria, such as the size of the house and the price range. Unlike the government site, there's no photo and no detailed information about the home's condition. Each of the three sites offers a free seven-day trial; to take advantage of the trial, users generally must provide the sites with their credit-card information. Foreclosure.com charges $9.95 a week for an online subscription, Foreclosures.com charges $49.95 a month and RealtyTrac has a $39.95 monthly fee.
The for-profit Web sites all talk about the large number of properties they feature. Foreclosures.com and Foreclosure.com each say that they have more than 1.2 million listings; RealtyTrac says it has "over 500,000 properties -- updated daily." All three say they update their information regularly.
But even some companies acknowledge that some of the information they offer is out of date. "The most common complaint is either the property is not on the market yet or the property is already gone," says Rick Sharga, a vice president of RealtyTrac Inc. "If there are 1,000 properties in an area you are interested in, there are probably 100 that represent something of a buying opportunity. You might be able to get in touch with 10 of the homeowners and maybe make an offer on one or two."
Figuring out which site has the most accurate information would require checking out hundreds of thousands of listings. But our spot check easily turned up information that was outdated. On Foreclosure.com and Foreclosures.com, for instance, we found a three-bedroom, one-bath home priced at $101,900. Ms. Simpson, the Atlanta broker, told us the house had been under contract for 30 to 45 days. Then there was the three-bedroom, one-bath home that has been on the market for several months. Foreclosure.com was the only one of the three sites to correctly report that the price had been cut to $145,900. RealtyTrac.com pegged the property's value at roughly $204,000, while Foreclosures.com valued it at $264,000. The Web sites say that such numbers are estimates of market value and aren't a replacement for a formal appraisal.
Foreclosure.com was the only one of the three sites to provide the name of the broker handling the sale of bank-owned properties and contact information for the broker. RealtyTrac, meanwhile, suggested we use a "local specialist" who pays the company a flat fee to be a featured agent for a particular area.
Customers who sign up for the free seven-day trial at RealtyTrac.com automatically have their email address sent to a broker, unless they opt-out. We received an email from our "personal Realtor" within hours of signing up for the service. RealtyTrac also provides links to lenders, credit-score providers, movers and other businesses that pay to advertise on the site. The other two Web sites also had additional products to sell. Foreclosure.com listings include a link to HomeSmart.com, which pays a fee to be featured on the Web site and sells reports that detail home-purchase risks and estimate property values. The Foreclosures.com site included offers for teleconference calls, home seminars, Web seminars and personal-coaching sessions. We found some useful information about the foreclosure process on the Web sites, such as the information about state foreclosure laws. But the content on these sites is often mixed with promotional materials.
July 3, 2006
Historic property is sold at auction
By SANDRA BAKER
STAR-TELEGRAM STAFF WRITER
STAR-TELEGRAM/PAULA TREVINO
MAP: VICTORY ARTS CENTER
FORT WORTH -- Victory Arts Center, the residential redevelopment of Our Lady of Victory convent on the city's south side at Hemphill and Shaw streets, has been sold at foreclosure auction. Peter Lyden, a Fort Worth-based real-estate investor, and his cousin, Robert Lott, of Birmingham, Mich., recently bought the historic property through their family's holding corporation, Leo E. Wanta Associates in Carson City, Nev.
The property was sold at auction June 6 by JPMorgan Chase Bank, which foreclosed on the property earlier this year. The bank called a $3.2 million note after the owner, a limited partnership called Victory Arts Center, defaulted. The loan was obtained in April 2002. Victory Arts Center is a $6.5 million redevelopment of Our Lady of Victory convent, which opened in 1910. The Sisters of Saint Mary of Namur operated an all-girls school and college at the property, 801 W. Shaw St., but left in 1987.
The nonprofit Historic Landmarks bought the five-story building in 1993 for $60,000 and began obtaining financing for their plans, which were eventually carried out under the Victory Arts Center name. It took a decade to do, but historic preservationists hailed the inner-city neighborhood investment as a success. Residents began moving into the building in 2003.
But about a year after opening, the project began having financial problems. Its developers have said that the project ran over budget and was taking longer than expected to lease the space. Several liens were placed on the property, and two contractors sued Victory Arts Center and the construction manager, Daedalus Development Corp., for nonpayment. The liens were eventually released and the lawsuits settled, according to county deed and court records.
The project was helped with grants and tax credits, including $287,000 from the city of Fort Worth, $250,000 from Tarrant County, $302,000 from the National Trust for Historic Preservation, $405,000 from the U.S. Department of Housing and Urban Development and $2 million through Fannie Mae. Victory Arts Center has 46 apartments and is 90 percent leased, but Lyden said it should be fully leased soon.
Other than some minor repairs, Lyden said he expects to make no major changes to the property. A new management company has been hired, 16 residential parking spaces are being added and some exterior painting is being completed, he said. "I'm going to make sure this property shines," Lyden said. "It's a beautiful property. I love historic buildings in Fort Worth. I'll definitely take care of it." Victory Hall, once a chapel in the building's interior that has been redesigned for use for events and receptions, has also reopened, Lyden said. The former owner stopped renting the hall when the foreclosure proceedings began, he said.
A year ago, Lyden and Lott bought three buildings on East Rosedale Street near Texas Wesleyan University that date to between 1910 and 1929. Those properties were owned by Daedalus Development.
June 27, 2006
Home buyers beware: Bidding wars can push price into danger zone
Ron Chalmers, The Edmonton Journal
Published: Wednesday, June 28, 2006
EDMONTON - In today's tight housing market, many Edmonton homes are attracting multiple offers, some exceeding the list price -- which may punish impulsive buyers. During May, with more prospective buyers than sellers, homes sold in only 20 days on average, compared to 46 days in May 2005.
This sellers' market, especially for attractive, mid-range homes, can resemble an auction -- with the list price as a mere suggestion. Most sellers list their homes close to the values that are signalled by recent sales of comparable properties, says Terry Paranych, owner of Re/Max Elite. But with fast-rising prices -- up 22.3 per cent in the past year -- such comparisons could be outdated. "You may have 10 or 15 realtors bringing offers," Paranych says.
"Probably seven or eight times out of 10, you receive multiple offers," says Madeline Sarafinchan, president of the Edmonton Real Estate Board. She advises sellers to not consider any offer within the first 24 hours of listing -- because other realtors may bring better offers.
One of her colleagues recently listed a home for $279,00, quickly received five offers, and sold it at $299,600. Competitive bidding may reveal a home's fair market value but can be dangerous for an unprepared, undisciplined bidder. People who expect to buy a home at its list price, then learn that higher offers have been submitted, may feel pressured to offer more than they can afford. Paranych and Sarafinchan advise shoppers to arrange pre-approved mortgages and only to make offers within their borrowing limits. Shoppers also can arrange a home inspection, before making an offer, to ensure that it can be done quickly.
An offer that is conditional only upon pre-arranged financing and inspection may beat out a higher offer that is subject to a longer delay. Buyers who submit top-dollar bids with no conditions could be taking big risks. "I have seen cases where a person buys unconditionally, and there is no statistical information to support the price," Paranych says. A lender then may not approve the needed mortgage amount.
The mortgage normally cannot exceed the appraised value, nor can payments exceed the borrower's ability to pay, says Jill Lindstrand at ATB Financial. Sarafinchan says she normally will not even show a home to shoppers who could barely afford the list price "because it may end up selling higher."
Mike Dickinson, at Capital City Savings, says a pre-approved mortgage limit might be boosted if the buyer's financial circumstances have improved. But Ian Glassford, Capital City's chief financial officer, cautions that appraisers must by guided by actual recent prices -- even when a buyer believes that prices are rising. "The lender needs the comfort of knowing that it can get its money back."
A shopper whose unconditional offer is accepted, then cannot find financing, could forfeit his or her deposit, says Jon Hall at the Edmonton Real Estate Board. Also, "the seller may launch a lawsuit for failure to perform," he says. For example, if someone offered to buy a home for $250,000 with a closing date three months in the future, and if the seller accepted that offer and removed the home from the market -- then could only sell it for $225,000 three months later, when the original deal collapsed, he might sue the would-be buyer for the $25,000 difference.
Paranych tells buyers to arrange financing in advance, to understand their mortgage approval and monthly budget, then to buy within their limits. f the house you want gets bid up beyond your reach, "don't give up, stay focused with a good agent, and there's always another house that you'll like more," he says.
June 23, 2006
Home sellers turn to auctions to expedite turnover
By Chelsea J. Samuel csamuel@news-press.com Originally posted on June 24, 2006
Auctioneers estimate they got three calls from Florida residents last year. Now, they are now getting at least 15 calls a week from people desperate to sell their Sunshine State real estate.
"Fort Myers is really picking up," he said, as is the rest of the state.
Some auctions actually take place on the property for sale, and others are over the phone or Internet. A house in Grandezza in Estero is being sold by fax auction, meaning the seller will open sealed bids and accept one, most likely the highest one, within 48 hours.
Auctioneer and broker for Auction Groups, in which people can bid on houses for sale in a way they would bid for a used iPod on eBay. "It's an accelerated way of selling real estate," Mahaney said. "As you see the market slow, people are forced to go for quicker results."
Auctioneers say a house sold at auction generates "fair market value," meaning that public interest in a property determines its price, instead of how much the seller wants for it. "The system works great," he said. Mahaney said auctions allow sellers to unload property quickly. Sales close 30 days after the auction ends, with cash in the seller's hands.
Because of the rapid turnaround, Mahaney said auctions are popular with investors and builders trying to unload inventory and free up some extra funds. They're also good for a homeowner who needs to sell a house quickly after moving, so he isn't paying two mortgages.
The house in Estero is being sold by a group of Swedish investors who bought new construction and are looking to free up some capital for more investing. "Something has to go," he said.
Bids for the house were due by 5 p.m. Tuesday and the investors had 48 hours to mull over the results. The suggested opening bid for house was $499,000. Because the emphasis is on speed, sellers can't wait around until they get an offer that matches the number they're asking for. However, some properties do create bidding wars, particularly for highly desired waterfront and trophy properties.
Mahaney said most people think of housing auctions as selling foreclosed homes, but said luxury homes sell particularly well at auction. "You can really use it on any type of property," he said.
While business has picked up in Florida since the housing market has cooled down, Mahaney said homes sell even better during real estate heat waves because the fervor spreads to bidders. "The auction method actually works better in a fast appreciating market," he said..
"The auction consciousness in Florida is really behind most of the Midwest," he said. "People are looking for the quickest way out." One investor recently sold a home in Fort Myers for less than he bought it for. "He just wanted to get rid of it and stop the bleeding," he said.
While the trend may have migrated here from the Midwest, unlike the wintering snowbirds, Mahaney said he thinks housing auctions are here to stay. In addition to lots of interest from Southwest Florida home sellers, he's gotten a lot of calls from people in the Tampa Bay area as well as the Panhandle and Miami. He said he expects to double the number of Florida homes auctioned soon.
June 18, 2006
Hollywood ending for O.C. auction
By HANG NGUYEN The Orange County Register
SUNSET BEACH ? Minutes before the auction of an oceanfront triplex, bidders Renee and Mike Patz thought they were wasting their time. The Whittier couple watched as more than 100 people - most of them bidders - spilled onto the patio and balcony of the home that sat on the sand and stared at the glistening water on a warm, windy Saturday.
The couple might have been more nervous if they'd known movie star Sandra Bullock, who had just stepped onto the patio, was one of the 68 people who put in a $100,000 cashier's check for the right to bid. About 400 miles away in San Francisco, Jean Johnston, owner of the beloved home she helped her parents build nearly 40 years ago, walked her dog and window-shopped. "I didn't want to sit by the phone," said Johnston, 49.
In Orange County's slowing housing market and elsewhere in Florida, Nevada and Michigan, more homeowners are turning to auctions to settle in five minutes sales that could linger for five months, said the Auctioneer. Around the auctioneer stepped up to a podium nestled in the sand behind the home. He began the bidding at $2 million. In seconds, the price shot up to $2.6 million, leaping by $100,000s.
"Do I have $2.7 million?" bellowed the auctioneer, pumped with adrenaline and sweating. Bullock's agent lifted his paddle. Bullock, barefoot and wearing jeans, watched from a neighboring porch. Renee Patz, crammed into the left corner of the patio, raised her paddle for the first time at $2.8 million. "I was waiting for the meaty part," she said later.
The auctioneer pushed for, and got, $3million. Patz responded with $3.1 million. The Auctioneer knew he was reaching the bidders' peak. He nudged the price up by $50,000. He goaded Bullock's agent for many seconds, a lifetime in the auction world. Bullock gave him the go-ahead - $3.15million. That had been Renee and Mike Patz's limit. But they loved the view, had wanted it for three years. They came back at $3.2 million.
Back to Bullock. Seconds ticked by. No sale. The shocked Patzes won.
The price topped the $2.9million for which a comparable Sunset Beach home recently sold, and the $3 million that Wohl expected.
"I'm excited, but a little scared because it's a lot of money," Renee Patz said.
She and her husband plan to rent out the three units and live in it during the winter. "It's her dream home," Mike Patz, 60, said. Later, he learned Sandra Bullock was their main competition. The name didn't ring a bell.
Holding her shoes, a smiling Bullock walked away. A girl ran up and asked for an autograph. She obliged and jokingly asked the girl if she bid. An hour after the auction ended, Wohl gave Johnston the great news. "I'm just absolutely ecstatic," she said. Before she and three siblings decided to auction the home, a $2.8 million offer tempted them.
June 16, 2006
Auctions a fast way to buy, sell a home
Paul LaGrone Last updated on: 6/16/2006 6:01:52 PM
LEE COUNTY: With mortgage rates on the rise and home prices dropping, the housing market is a big question mark right now. Now, many people are turning to a new trend that makes buying or selling a home faster than the traditional route. Eric McKinney bought his dream home, it happened in a matter of seconds.
"There wasn't any going between a realtor,' Well this person said that and this person said that,'" said McKinney.McKinney bought his home at an auction. It's a booming business that's starting to change the game of real-estate. The residential real estate last year sold at auction, in live auction, was just over $14 billion," said Tommy Williams of National Auctioneers Association.
The art of auctioning has been around for centuries, and it shows no signs of slowing down. It's a $240-billion industry that grew by more than 10-percent last year.
Auctioneer Frank Land says he can sell a home in 90 seconds flat. His name may be an appropriate coincidence, but Land's business leaves nothing to chance."That's how daddy taught me to do business," said Land.Land sells six figure properties in less than two minutes."One sale took 90 seconds. It took me 30 minutes to get through the announcements," said Land.
He says the reason auctions are usually successful is the bidders come to buy."Of course we tape record the conversation. We jokingly say that the judge can hear that I told you what you needed to know so don't bid if you don't have the money," said Land.
The highest bidder makes a down payment on the spot and the deal is legally binding.One drawback- buyers have limited time to research the home before the auction."The sale is as is. There's no guarantees, no inspections. Now if they want to have an inspection done they can do that but the sale is not contingent on that inspection report. It may affect how much they want to bid at the time," said Land.
The risk for the seller is that the home may not go as high as expected. That's why a reserve price is set."It's a great opportunity to get the home that you want and pay what you want," said McKinney.
"There are winners on both sides and it's quick and we sell more than don't sell," said Land.
Some say auctions could be the perfect catalyst for a slowing real-estate market.
It typically takes 60 days from the time someone decides to sell until they auction their home. Experts say buyers should check out the auction company's reputation and do any inspections before the big day.
For years, those who wanted delinquent tax certificates waited for the week in May in which they could invade the county courthouse and bid Wall Street-style for those certificates pertaining to properties all over Duval County. The process was the 4-5 day auction in which delinquent tax deeds were sold to the highest bidder. Often, things got loud and heated and the auction took on a stock exchange look and atmosphere.
?There was all that hollering and screaming,? said Alvin Crooms, manager of property taxes and occupational licenses for the Tax Collector?s Office. Welcome to the 21st Century. Crooms, who has been handling the auction since 1996, said this year?s auction will be a one-day affair and will be conducted solely via the Internet through an internet firm. ?They have handled these kinds of things in the past in other counties,? said Crooms.
Last year, Crooms said 200 people spent nearly a week bidding on tax deeds for various real estate all over the county. This year, with an online auction, there is no telling how many people will bid on 21,786 delinquencies worth $31.7 million that will be up for sale. Starting Tuesday, delinquent tax notices will be printed in the Daily Record and again on May 23 and 30. The one-day auction is June 1. Crooms, who has no role in the auction this year, said the decision to hold tax deed auctions over the Internet is becoming more popular.
?Every county is getting away from it (live auctions),? he said. ?They want to let a company do it for them. It?s automated rather than manual.? Tax Collector Mike Hogan said his office went to an online auction for two reasons. ?First, it was getting to where the sales were lasting four and five days. This will mean less time on the auction for my staff and more time for them to work on other things,? said Hogan. ?Second, it?s a win-win situation for the tax certificate buyer and the person who can?t pay their taxes. Low-interest bids benefit the property owner when they redeem that tax.
?Also, typically, we were seeing more and more buyers that were not from this county. Now, literally, you can participate from anywhere in the world.? Hogan said when he took office in 2003, the technology existed to hold the auction online. However, as much as he appreciates cutting edge technology, he wasn?t willing to be the guinea pig. ?In 2003, one or two counties in Florida had gone to it. I embrace technology, but I didn?t want to be the front runner,? he said. ?All of them had their problems and all of those problems were overcome. There was one lawsuit and the tax collector?s office won. There was no reason to put my folks at risk at the time.?
Reimers said her company is handling similar auctions for seven other Florida counties. In Jacksonville, the company responded to a Request for Proposal and submitted a bid for the job.
?The Internet firm works with private companies as well as the government on the federal, state and county level,? said Reimers. ?eBay made online auctions a household name. But, that?s where the comparisons stop.? Not everyone is pleased with the online nature of this year?s auction. The fear is many locals will be left out of the process thanks to the one-time bid option and the fact that in previous years, bidders from remote regions of the state were reluctant to come to Jacksonville for several days to bid on properties they may not land.
Attorney Gerald Sohn and real estate broker Larry Newkirk have both participated in the live auction for years. Neither plans to this year. ?Interest rates are so low that I expect heavy bidding from South Florida,? said Sohn, who was involved in the live auction for more than 20 years. ?The online auction will be quicker and there will be more competition from outside Duval County. People can sit in Miami and bid on certificates.? ?I don?t think I?ll get involved because interest rates are so low.?
Newkirk said the process won?t be a true auction, one in which individual bidders drive the price of a certificate up. ?It will be more like a field bid. It?ll be a one-time bid,? said Newkirk, who doesn?t plan to bid this year after 20 years of being involved in the live auction. ?It?s not a public auction.? Newkirk believes that large conglomerates from all over the state will dominate the bidding by buying a majority of the certificates at minimum interest rates, then bank on the property owner paying the delinquent taxes within 23 months. Newkirk says that many of the certificates will be purchased for the minimum 1/4 of one percent interest bid. The property owner, in turn, is faced with a minimum 5 percent penalty. Thus, the certificate holder profits from the difference.
April 23, 2006
Army Seeks Buyer for L.A. Land
The scheduled online auction of 10 prime Westside acres raises concern for growth foes and uncertainty for potential bidders.
By Martha Groves, Times Staff Writer April 24, 2006
The U.S. Army is seeking a developer to purchase 10 acres of prime Westside real estate at the southeast corner of Wilshire Boulevard and Federal Avenue, igniting new growth concerns in an area that is already experiencing a surge in development. Now in use as the West Los Angeles U.S. Army Reserve Center, the parcel is expected to be offered through an online auction in June. Qualified buyers would submit bids and, as part of the deal, would agree to build replacement facilities at existing government properties elsewhere in Southern California.
The parcel is a small part of several hundred acres of federal land along Wilshire between Brentwood and Westwood that has often been the subject of heated debate. The government acreage also encompasses both the Federal Building and the West Los Angeles Veterans Affairs campus, which includes the largest chunk of open space left on the Westside.
The Department of Veterans Affairs is evaluating how to redevelop the VA campus and has faced harsh criticism for suggestions that it might allow some commercial development at the site. Separately, the General Services Administration is in the environmental review stage for a new 1-million-square-foot FBI headquarters on the Federal Building site. The future of the federal land has become something of a rallying cry on the Westside, which is seeing an explosion of new condo projects in Westwood, Century City and Beverly Hills (including on the site of the shuttered Robinsons-May department store).
Los Angeles County has zoned the 10 acres for institutional uses, which could include schools, fire and police stations, hospitals, parks and playgrounds, libraries, and government offices and services. This could make the property of limited appeal to developers, unless they could obtain a zoning change from the county to allow residential or retail uses. But Los Angeles County Supervisor Zev Yaroslavsky vowed to fight any zoning change, saying that local officials were "on the same page" on that issue.
"We now have three different agencies of the federal government working on three different projects, and they don't appear to be talking," Yaroslavsky said. "There appears to be no coordination and certainly no master plan. "It's almost like the Bush administration is in a race to exploit whatever federal property there is for as much money as they can," he added.
"Are the skids greased on this thing [the 10-acre parcel]? Have they already picked somebody?" Yaroslavsky said he planned to travel this week to Washington, D.C., where he would urge the California congressional delegation to push the government to prepare a master plan for the entire area.
On Wednesday, Los Angeles City Councilman Jack Weiss introduced a motion calling on the council to request such a plan from federal officials and expressing opposition to the proposed FBI headquarters. The 10-acre parcel was originally part of 300 acres conveyed in 1888 by private individuals to the National Home for Disabled Volunteer Soldiers. The Army Reserve acquired the 10 acres in two separate transfers, in 1956 and 1976.
The property had been the subject of speculation for many weeks. Then, on April 16, the Army placed a small advertisement in The Times. The headline read: Prime U.S. Government Real Estate Offered for Exchange. Technically, the deal would be a "real property exchange."
According to the website listed in the advertisement, http://www.westlarpx.com , the auction will run from June 12 to June 23 with a minimum bid of $1. As for who would bid, Yaroslavsky said he was at a loss. "If somebody's interested, for one thing they'll want to find out what can we do on it, and I don't know that they'll be able to know that," he said. "All would have to be washed out in the conditional use permit and environmental review process.
"This is the most restrictive zoning that exists in the Westside of L.A.," he added. "With that in mind, you take your chances." Terry Laughlin, a legislative liaison officer for the Army, said any buyer would have to deal with the local zoning issues. "It is what it is, and we're not going to do anything to influence it," Laughlin said. "That's not the Army's business."
Laura Lake, a Westwood activist and co-founder of the Federal Building Coalition, a group fighting the FBI headquarters plan, said the 10 acres should revert to the VA and be used for veterans. "This is all originally vets' land, and slowly over time it has been transferred to other agencies," she said. "The VA should ? hold on to this land because the vets need and deserve it."
Charles M. Dorman, director of the VA's Greater Los Angeles Healthcare System, said the property "is far too valuable to allow it to be used for commercial development. It could be put to wonderful use for the veterans we care for."
Market Reports 
March 24, 2007 
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