More Condos For Auction
Published October 27th, 2006
Scipps News reports on some auction tricks. “As the nation’s residential real estate market cools down, condo auctions are heating up. A penthouse in Denver’s Cheesman Park that had been languishing on the market for two years was recently auctioned off in less than 5 minutes for $1.935 million.”
“According to the National Auctioneers Association, the number of residential auctions was up by 8.4 percent in 2005 and another 4.4 percent in the first half of this year.”
“Across the country, developers and owners are opting to hire professional auction houses to sell residential condominiums rather than wait indefinitely for them to sell by traditional means. While sales of single family homes dipped 1.6 percent in September, condo and cooperative housing sales dropped 3.2 percent, according to figures just released from the National Association of Realtors, signaling that the condo market is lagging other types of housing in a recovery.”
“In a changing market where last year’s prices might no longer make sense, auctioneers say public auctions can determine today’s true market value. ‘An auction is a great way to avoid long-term carrying costs on a property,’ says Scott Kirk, senior marketing consultant with Grand Estates Auction Co.”
“‘The sellers know when the property will be sold,’ he says, ’so they have an end date, and they can set a reserve price and feel comfortable that they will not be forced to sell below that.’”
