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| 86 Degrees, 34,000 Monarchs Paradise. |
Last night Cathy McAllister stood up and made the absolutely most outrageous … and, as it turned out, categorically untrue … statement and said it came from Richard Laxton of Murphy Bank. I listened as she spoke with conviction and anger. I watched as she shouted down Judy Hall's innocent question. And, I took careful notes because, if what she was saying was at all true, I was going to have to rethink a whole lot of what I've believed and written on this blog.
Here's the story: Cathy stated that she and Jeff had met with Richard Laxton of Murphy Bank and that he said that we couldn't use Sunrise Terrace to think about lot prices since their amenities are so much better than ours. She also said he said that his experience with this particular law firm was that it priced lots $100,000 or more higher than they should be priced.
She then used my speculation that lot prices would wind up in the $175,000 - $225,000 range and concluded that the lot prices should be $75,000 - $125,000. Suddenly she believes something I've said???
Since Richard Laxton was one of the first outside professionals I contacted on this journey and he impressed me with his deep knowledge of conversions, mobile homes and area values, I was shocked that he would make a statement so offensive to the professional reputation of a law firm. I was also shocked because when I originally asked him what he thought the prices would be, he had responded without hesitation: $150,000 - $200,000.
So last night I sent him an email which prompted another round of emails and then a rather lengthy phone conversation. In brief, he denied that he made those statements, called them wild accusations and said I should ask the McAllisters to provide proof.
Here's the documentation of this conversation:
Email 11/12/13, 8:21 pm to Richard Laxton
Sunrise Terrace -- Cathy said that you said we would be sorely mistaken if we used Sunrise Terrace as a guide to our lot prices because their amenities are so much better than ours.
Over-priced lots -- she also said that from your past experience with this law firm (Gilchrist & Rutter) you expect the lots to be over-priced by $100,000. I have mentioned in conversation that my guess after looking at other parks and talking to various people is that the lots will be in the $175K - $225K range. So she started saying, "Wouldn't it be better if our lot prices were $75K - $125K?"
Best Guess -- in our first conversation, when I asked you what range the lots would fall in, you said $150K - $200K. Is there anything that would make you change that guess? Is there anything that would make you think the $75K - $125K is a reasonable range. (Oh how I wish it were!)
joyce
Email 11/13/13, 9:08 am to Joyce Wycoff
Joyce
Almost everyday I deal with loan customers who claim I said this & that. Sometimes I am shocked at what people repeat I said about a situation because they didn’t understand the conversation or heard what they want to hear. In the end I cannot make reccomendations to anyone as to whether one park is better than other because it is still an individual choice as to where to live. Since we service the loans we make we hear all the complaints when people need to sell a home and then can’t get out for one reason or another. In the end the appraisers are going to give their indication as to what the lots should be valued at. I think Michael has made that clear. Then after the park owner has made his decision to price the lots, the marketplace will take over and determine what the real values are. Murphy Bank does not set property values.
Sincerely,
Richard Laxton
Email 11/13/13, 9:57 am to Richard Laxton
Richard ... thanks for your prompt response.
Because Cathy's claim is so significant ... that you stated that this lawyer has overstated lot prices in the past by at least $100,000, could you confirm or deny that specific statement. The implication in what she said was that it was a deliberate overpricing in an attempt to do something devious and that it was plotted by this particular lawyer.
Because this is affecting your reputation, would you be willing to write an open letter to the residents that could be faxed to the Mesa Dunes office and distributed by them?
joyce
Email 11/13/13, 10:04 am to Joyce Wycoff
Joyce
In the first place, attorneys do not set appraisal values! This is exactly why you cannot get involved in hearsay. There is a park on the coast that has been involved in litigation for 5 years on lot prices but those prices were not set by attorneys.
Richard Laxton
Shortly thereafter, Richard called me. Highlights of that call:
He did not meet with the McAllisters although after a while he did remember a phone call where "some guy was talking about a $250,000 lot." Richard stated, "Lot prices will not be $250,000. That is just not going to happen."
He admonished me not to get caught up in this type of hearsay and to insist that they prove such a "wild accusation." He reiterated that it would be crazy for a park owner to set prices that were too high for the market since they would never sell. He also reminded me that no one is obligated to buy their lots so why would they if the lots were over-priced.
He agreed that while every park is different, Sunrise Terrace does give us a marker for thinking about lot prices. He also talked about Pismo Beach Mobile Home Park where the lot prices are $250,000 but they are too high and lenders are not making loans at that price.
Conclusion: Make of this what you will, but if someone is willing to stretch the truth this far, can they be trusted at all?
