Real Estate Auctions for Value and an upcoming Auction in Leavenworth!
There are a couple of notable things regarding real estate auctions. One is an upcoming auction on December 13th of 14 condominium units in Leavenworth by James G Murphy Auctioneers. The auction is being held subject to disclosed minimum bids. The minimums start at $180,000 and range up to $365,000. The minimums look to be 51% to 58% of what is called “original price.” If none of the units are sold, the building will also be offered in its entirety.
I have been in this property and the condominiums are very nice, with premium finishes. Those prices get my attention as being potentially attractive to start bidding. However, maybe one of our Leavenworth readers will comment on the potential value of the units. When I toured the property, the association did not allow nightly rentals. However, the description of the “Builder’s Story” does state potential rental income, so that might have changed.
The other story is how auctions are being used, beyond foreclosures, in this market. A posting from the Real Estate Bloggers tells the story of a Florida condominium developer who is using auctions to determine market value in a stalled market. It will be interesting to see how the Leavenworth Auction works out. Recent auctions in North Central Washington have had mixed results. Sellers have to be willing to offer an attractive minimum to get bidders.
3 Responses to “Real Estate Auctions for Value and an upcoming Auction in Leavenworth!”
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Al- I actually just wrote about this myself on my blog.
http://www.myleavenworth.com/2008/11/leavenworth-condo-auction.html
The condos orginally did have covenants that prohibited vacation rentals and were 55 and older as well. I think this was a big mistake (along with pricing) and inspired this post.
http://www.myleavenworth.com/2008/03/top-5-ways-to-shoot-your-leavenworth.html
I think some of the starting prices are good and some are not. If folks are interested in opinions about whether or not to buy during this auction, I suggest they consult with a real estate professional of their choice. I would be happy to give my two cents, but am not going to do it on a blog.
At the risk of shouting into the wind, I will repeat the theme of my condo blogs. “Builf it and they will come” is neither a business plan nor a marketing plan.
This will not be the last auction in Leavenworth.
I attended today’s auction. You can read about the results here:
http://www.myleavenworth.com/2008/12/leavenworth-condo-auction-update.html
I just did a new post at my site updating the news on all the Leavenworth condo projects.
http://iciclecreekrealestate.com/2009/03/09/leavenworth-condo-market-spring-2009-update/
As one might expect, many of the big projects scheduled for this year or next have been canceled or postponed.