CA VCS unauction

Ventura County

With a sleeping bag wrapped snugly around his shoulders, Kamran Jabbari was spending the night camped in front of a new condominium complex in Oxnard, staking out his spot as No. 7 in line to buy a home.

As pumped as a teen waiting to snag a Wii or an iPhone, Jabbari was willing to rough it for a few days for a chance to buy a discounted luxury condominium at Port Marluna at Seabridge.

Jabbari, owner of an Irvine software development company, was sitting huddled in the cold at a card table Friday night, playing Scrabble and trading stories with other prospective buyers. Some had been in line for three days, waiting to sign papers when the sales promotion launched Saturday.

Camping out to buy a home is unheard of in today's declining housing market. But price reductions of up to $320,000 drew eager buyers.

Ten of the 11 condos for sale sold Saturday for a combined estimate of $4.8 million, according to a price sheet. The remaining 1,720-square-foot home — a two-bedroom, two-bathroom unit — is priced at $549,990.

The price-slashing turned out to be a success for home builder D.R. Horton. The Fort Worth-based builder has been struggling, with reported losses of $128.8 million for its fiscal first quarter that ended Dec. 31. The push was a way to spur business for the company, which generated $1.71 billion in revenue last quarter, down from $2.8 billion from the same period the previous year.

Dubbed an "unauction sale," the company described it as "low auction level pricing" without the hassle. Homes went up for sale on a first-come, first-served basis, according to Chris Chambers, California regional president for D.R. Horton.

The company's goal was to reduce inventory at 23 of its communities throughout Southern California, including 11 homes at Port Marluna, Chambers said.

Buyers didn't come in droves, but at least eight were waiting Friday night, armed with $5,000 cashier's checks, food and warm clothes. One prospective buyer even had a portable propane heater.

Matthew Dwork, 23, director of marketing for Merlin Medical Supply Pharmacy in Camarillo, was the first in line. He paid someone $75 a day for three days to stand in line while he worked.

At night, Dwork took over.

Several buyers said they could not resist the discounted luxury condos, priced from $399,000 to $699,000, depending on square footage and view of the marina.

"It's a deal," Marjorie Cole, a Port Hueneme resident, said as she walked around the model homes Friday night, pointing out amenities that she liked, such as the walk-in closets and spacious bathrooms.

The sale is more than just hype — homes are actually discounted — she said. The price on the home that she and her husband planned to purchase was reduced $250,000.

Cole and others called camping out an adventure.

"We watch the show Survivior,' " she said Friday night, bundled up in a poofy jacket and ski hat. "Well, this is going to be our Survivor.' "

The wait ended Saturday afternoon when Cole and her husband signed papers on the home of their choice. Escrow is scheduled to close March 21.

Although he didn't get his first pick, Jabbari also purchased a "beautiful home" and said he couldn't wait to move in. After signing papers, he and his wife stayed the weekend at a hotel to explore the surroundings of their new vacation home and shop for furniture. He described Oxnard and Channel Islands Harbor as a "well-kept secret."

Jabbari said he trusts that the housing market will rebound. Promotional events such as the luxury condominium sale will help drive a recovery, he said.

"You have to get over your fear of What if I buy today and six months from now it's down another $50,000?' " Jabbari said.

Maria Rios, a Realtor with Century 21 New Vision, called these types of sales "bait" because they generate hype and attract people who think that they cannot afford a home.

She said it was an "excellent idea for developers," who are competing with foreclosure prices. However, Rios said she recognizes that the discounted luxury condos undercut values of other homes on the market. The traditional home seller is being left in the dust because they cannot compete with the developer, she said.

"They are cheating the people who bought the homes from them at regular price," Rios said.

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