Chatsworth New Construction Townhome Auction

This last Sunday, I went to my first live real estate auction. I have been to fundraising live auctions before for my kids' schools, but this was a new experience! A cute puppy or front row seats at graduation might fetch a handsome sum, but this was a whole different level!

On the auction block were twelve newly built townhomes in a desirable Chatsworth neighborhood. The units had been open for previewing for a few weeks prior to the auction: I had gone twice, with two different buyers one of whom accompanied me to the auction with the intent of making a bid and hopefully walking away a first time homebuyer. The units ranged in starting bid prices from $140,000 to $170,000. All units featured upgraded materials, high ceilings, and large open kitchens with 3 bedrooms and 3 baths. The square footage ranged from a bit over 1500 to a bit over 2500.

Those were the only numbers my client and I knew going in--what we didn't know was how high the bidding would go. The auctioneer began with the published starting bid and went up quickly in $10,000 increments; as the bidding escalated and there were fewer bidders he went up by $5,000 increments. Eventually, he went up in $1,000 increments, often between just a few bidders. It was interesting to see how the smaller increment bidding played out: if the price were, say, $320,000 and nobody bid up to $325,000 the auctioneer would ask for $321,000 then $322,000 and so on. Guess what? The price would eventually exceed the earlier stopping threshold of $325,000. Perhaps buyers felt they were so close--what's another thousand dollars?

Ultimately, the sales prices ("subject to seller's acceptance," which the auctioneer said every time after booming "sold!") for the units ranged from just over $300,000 to $400,000--well over double the starting bids! And my buyer? He is still waiting to be a first-time homeowner, but his day will come!

If you would like more information on new construction in the San Fernando Valley, or Chatsworth properties in general, let me know and I will be happy to tell you more.