As promised, here's a neat chart I whipped up showing the original listing prices and their ultimate auction winning price. As you can see, some people picked up 2BR units for just over $300K which I suspect, at the risk of putting chum in the water for the pessimists, will turn out to be a really good price.
Overall, a few things struck me about yesterday's auction:
- It was a real auction where the seller was willing to move property, even at a substantial discount off of their original price. E.g., Townhomes sold for 40% off (this is considered a good deal even if you're buying shoes).
- Everything sold. Granted, the minimal bids were set very low to bring in the interest but all of the units sold and for more than the minimal bid. If we found that no one showed up or only a handful of people bought a handful of units, it would have been a very ominous sign for the Seattle condo market.
- The developer probably got a bit greedy last year and could have sold off the units earlier and perhaps 10-20% more than they sold for today. To be fair, hindsight is 20-20 and kudos for them for wrapping up the project this afternoon.
Someone got a 2BR for $300K. Lucky SOB’s. I’m quite a bear but that’s gonna turn out to be one of the best deals in a long time. Kinda like Dow 6500.
Wendy,
Are realtors a part of the auction process? Does a buyer present with a realtor?
BDC
Hi BDC! To answer you question about whether a buyer presents with a realtor, I can say it’s up to the auciton house rules and the seller but so far as I know, the Kennedy Wilson group who did the Queen Anne auction promoted 2% commission to buyers with agents. They have a strict registration policy i.e. if you don’t bring your agent to register, your SOL but other than that, they permit it. I say USE ONE! You’ll pay what you bid anyway, why not enlist the expertise of a seasoned agent and let the seller pay him.
Hi Wendy,
What is the advantage to the buyer for using an agent in this case? I understand the buyer isn’t losing any money, but what is he/she gaining by using one?
Pre-auction :the agent can help you with determining the fair market value for the property and come up with a game plan for your auction day. Post-auction: The agent helps to manage the entire process (giving advices, assisting with the purchase and sale agreement, arranging inspection (if any), obtaining title report, coordinating and communicating with all the people involved in the entire process) Basically, like a project manager representing your best interest and looking out for you : )
Well said Wendy. Even as noted in the Komo 4 news report, buyers can end up feeling intimidated by the process. More to the point, I re-word the question above to be what is he/she LOSING by using one (a Realtor). The answer. Nothing.
@LD: If you have to ask, you’ve probably only had crappy Realtors in the past.