Something New & Different

different

…and now for something completely different, we have the new listing at 857 Canis Ln at Isle Cove in Foster City. This place was listed twice before, both in 2008 & 2009, for as high as $739,000. The current sellers bought it in 2004 for $620,000. It didn’t sell even after several price reductions and it was relisted yesterday by an online auction company for $300,000.  According to the auctioneers it is not a short sale or an REO. The sellers still own it. The process of auctioning this place is different, they only allow showings on specified days and during specific hours. Buyers will be able to place a bid online during the 30 day auction period. The fine print in the listing says that “starting bid/final bid/sale amount subject to seller reserve”. It’s going to be VERY interesting to see what that reserve is…considering the sellers paid $620,000 for the place. What happens if the high bid is $500,000? Can they cover that without it ending up a short sale? This is the first auction that I’ve seen in Foster City and I think it’ll be very educational. Stay tuned for some updates. By the way, the pics of this place linked above are from Phyllis McArthur of McGuire Real Estate’s old listing. For what it’s worth…this unit is not a waterfront in spite of that pic.

Comments

  1. Unless I am mistaken, the lowest I saw this unit listed for was $650,000. The HOA at Isle Cove went up a couple of times recently and is now over $500. I believe I read in one of your comments that there is a $40K special assessment per unit at Isle Cove.

    http://fostercityblog.com/2009/02/condotownhouse-inventory-february/

    I wonder if the new owners would be responsible for that assessment.

  2. Jim Minkey says:

    You’re absolutely right….good question. I assume that would be part of the bidding process. I’ve seen some auctions that were done by banks following foreclosure but not one that a seller participated in. I can’t help but wonder what their bottom line really is?

  3. Jim Minkey says:

    Interestingly, in the fine print on the auction companies website is a statement in bold type that announces that the buyer will pay the auction company a total of 4% of the purchase price as a fee. Interesting!

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