West Sacramento

Townhome Auction Left Buyers Scratching Their Heads

October 20th, 2007 categories: West Sacramento, Yolo County

Scratch head.jpg Going, going, SOLD or was it? Bargain?

Last month developer John Leonard, who designed and built Rivers Side at Washington Square in West Sacramento decided to invite an auction company to sell 22 of the original 25 townhomes that he couldnt sell, himself.

200 eager townhome buyers reveled in the auctioning off of these townhomes valued at $409,500 to $467,500 that had opening bids of $259,000 to $279,000.. They were looking for the buy of the century.

As I have stated before, auction companies bank on the fact that the low bids will entice the home buyer to come and get caught up in the frenzy of an auction and bid much higher.

In this case, the so-called winning bid for a $419,500 townhome supposedly sold for $307,500 and another with 1628 square feet valued at $467,500 supposedly sold for $355,000. Riverside Townhomes Off I street Bridge.jpg

The home buyers were delighted to pay the 5% commission to the auction company that John Leonard brought in to sell his townhouses. Everyone went away thrilled that they had paid bottom dollar for new townhomes just off the I Street Bridge from Downtown Sacramento in West Sacramento.

Each of the winning real estate bidders signed an agreement that the Developer and the Bank had 10 days to accept or reject their winning real estate bids.

It seems that the Bank doesnt agree with the winning real estate offers. So, these townhouses are not sold after all. There are some Townhome buyers who are left scratching their heads, now. It seems that the price that the Buyers were willing to pay is about $80,000 short of what is owed on the properties. Back to the drawing board

The auction company was hoping for the frenzy to bring higher bids but alas, these townhome buyers were not going to pay anymore than what they thought was reasonable. The Bank and the Developer now have 22 townhomes they still own.

I Street Bridge View This area in West Sacramento is a up and coming area in my opinion, with redevelopment and building in the process of revitalizing what once was a less than desirable area.

It seems that the Teachers Union, STRS has paid CASH for the current building in the process of construction right on the Sacramento River across from Old Sac on the West Sacramento side (see new construction on the right side of the photo above). There is money being spent and plans being made this is when the rich get richer so take notice and get in while the getting is good! Just a tip to the wise!

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