Cable TV host hopes to jump-start real estate salesBy Katy Stech (Contact)
The Post and Courier
Wednesday, February 20, 2008
South Carolina's real estate market is swollen with homes listed for sale. But a cable TV host who runs a James Island real estate business thinks he has found a way to overcome the collective hesitancy among buyers and stimulate the market with some fresh sales. On March 14, Richard Davis of Trademark Properties is proposing to auction off hundreds of properties across the state at the Gaillard Auditorium in downtown Charleston. Davis said the event could help create much-needed momentum in the local real estate market, which has suffered from slower sales for nearly two years. The auction concept tends to work better in slow markets because it links motivated sellers with investors and buyers who are looking for bargains, Davis said. "We're matching people who have sticks and bricks with people who want to own property," he said. Davis said he hopes to sell more than 500 properties that day, but so far the company doesn't have any sellers who have formally registered their homes for the auction. Trademark analysts Tuesday were sifting through $80 million worth of properties that have been submitted as prospective sale candidates. To see what homes will be up for auction won't be cheap. The company is screening potential buyers and charging $500 to sign up for the auction and review the listings beforehand. The fee will be applied toward any successful bid. "It's not a spectator sport," Davis said. "What we're trying to do is weed out people who just want to watch." Submitting a property to Davis' auction costs $100, unless the owner agrees to sell the property at a price assigned by the company. Trademark will add a 5 percent commission to the final bidding price. Selling real estate at auction isn't right for everyone. Since homeowners have to be willing to sell their property at a discount, Davis estimates that only 10 percent of all property listings would qualify for the sale. After the Charleston event, Davis said, he plans to organize auctions in 10 other cities across the country, including Atlanta, Chicago, Dallas and Seattle. In preparing for those sales, he and his firm hope to take advantage of the publicity he has generated from several years of exposure on cable TV. In 2005, Davis created a show about buying and flipping houses that was aired on the A&E Network. The two later split and are currently in a legal battle. Davis now has a show called "The Real Deal" that appears on the TLC cable network. Reach Katy Stech at 937-5549 or kstech@postandcourier.com. |
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Comments
This article has 6 comment(s)
Posted by moonpie on February 20, 2008 at 5:59 a.m. (Suggest removal)
What qualifies? I'm sure it would have to be paid for first and second the owner must be willing to take it in the shorts if it's an absolute auction! Don't think many will qualify. Nice try..
Posted by MasterandCommander on February 20, 2008 at 6:39 a.m. (Suggest removal)
Sounds like a scam.
Posted by willx45x on February 20, 2008 at 8:05 a.m. (Suggest removal)
If sellers want to sell their properties they should consider lowering the price (duh!). These houses aren't worth what most sellers think they are because most sellers are using pre-bubble prices and we are clearly in the middle of a bursting bubble. Mount Pleasant, for instance, is WAY overpriced and all the auctions in the world won't fix that until sellers wake up and realize their home's value is falling and will continue to fall for the next 12-24 months. So many people in this market (Charleston) are still in denial about what's going on and believe that we're somehow immune to falling prices. We're not. Prices in areas like MP will fall 20-30% more over the next 12-18 months. I don't know when sellers will get a clue, but sooner or later they will have no choice.
The phrase "flip this house" will be a relic before this thing is through. I'm willing to bet it will be ten years before anyone can make consistent money flipping again. Obviously Davis has realized this and is looking for other sources of revenue. It's a clever idea, but it will only work if sellers are willing to price the properties closer to their 2008 (pre-2002) value, not their 2004 value.
Posted by tbird on February 20, 2008 at 10:15 a.m. (Suggest removal)
Nice try Davis but will not work. Have to agree with some of the earlier posters. I am a Realtor also. Been buying, building and selling since Davis was in elementary school.
Agents who did well selling in the uptrend from 2002-2006 are unable to grasp the concept of shorting the market. Much like the equity market many investors have stock portfolios down 10% plus since December.
Sellers have to realize 2005 is gone and will not return in a generation. Unless they adjust their pricing to a realistic and "fluid trading environment" they will not get their properties sold.
Unless the auctions Davis proposes is absolute his idea is doom to failure.
Posted by trustreliance on February 23, 2008 at 10:27 a.m. (Suggest removal)
The news about the real estate market being so bad is just disinformation and FUD.
There is just as much money as ever to be made in real estate, and it doesn't matter if you are an investor, home buyer, home seller, or agent.
You can see what I'm talking about at http://www.homecommandos.net
Posted by kaym on March 2, 2008 at 4:04 p.m. (Suggest removal)
I don't think his show is on anymore and hasn't been for months. The reporter doesn't seem to have done her homework. Also, it had a different name because of various legal reasons.
We watched Richard and his group religiously when he was on A&E but things started to sour when they moved to TLC. Arrogance seemed to have taken over.
Sad, because the historical scenes and his love of the area made us interested in learning more about Charleston.