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EOS 21 Auction: "Once In A Lifetime!"?

Only $135,000!? EOS 21 Condos in Alexandria Virginia just announced a condo-conversion auction of 43 units. A "Once in a Lifetime Opportunity!"
This is the second condo-conversion project to take this "liquidation" sales technique. I know I say in my blog "I told you so" a lot, well no exception here. The risks with buying new construction (or conversions) is huge when they have excess inventory. New Construction Bargains: Risks or Rewards?
So what about EOS 21?
Well the auction is brought to you by the same people that held the Parkside at Alexandria auction back in October 2007 (see Parkside at Alexandria 1st post). Parkside had "starting prices" at $225,000, but ultimately got bid up to $280,000 to $290,000 (see post #2 the Results show with video). "Down" from an inflated sticker price of $340,000 (2lvl TH).
All in all they sold for maybe 5-10% off the price you could have gotten the week before with a written offer.
And now a few months later... they STILL have units that are priced starting at $290,000 (and there are a ton of short sales on the MLS in Parkside) which is just about what they went for at auction time.
WHAT A STEAL! Ha!
POSSIBLE BIAS ALERT! One thing that really ticks me off is the buyer agent broker offering. They offer only 1% to the buyer agent. In Virginia 95% of the time the offer is 3%. Why would they want to discourage a buyer from having an agent???? Um, because then the agent can get in the way of the transaction and actually represent their client.

So even though I write this post and people will learn about the auction, I won't take any clients to this auction unless they make up the difference. Why?

1) They will not go for anywhere near $135,000, so I won't even get the 1% ad it will be a wait of time for me.
2) My buyer agent contracts state what I get paid, so a buyer would have to make up the difference.
3) But even if a buyer is ok with paying #2, see #1.
Unless you are SERIOUS about bidding up to 90% of list price, and agree to pay my fee, then I can help you. I know, damn greedy Realtors! Why won't they waste 5 hours with me for that Once In A Lifetime!
Why would they want to DISCOURAGE REPRESENTATION??
So you won't know your rights. Did you know that you can still back out of the contract, even after the auction, if you don't approve of the HOA docs? These auctions do not trump the HOA review period (it does for a foreclosure).

(Sidenote, the "out" that you have is a double-edged sword. Because people know they have an "out" they will probably be MORE comfortable bidding $20,000 higher, so don't just see it as a win win for you)

Disclaimer: EOS gave me permission to post their ad, as long as they reserved the right to ask me to take it down if they don't like the blog post. I'm curious to see if they will request for the ad (not the blog post) to be removed.

- Written by Frank Borges LL0SA Broker FranklyRealty.com
Posted Thursday Feb 28
( 02/28/08 08:59PM ) — Cindy Jones-Northern Virginia Real Estate & Military Relocation Services

Can't wait to see what they say. 

( 02/28/08 09:42PM ) — FRANK LL0SA- Northern Virginia Broker .:. FranklyRealty.com

Cindy, you should have posted your blog on this. I don't mind:

http://activerain.com/blogsview/391134/Foreclosure-Auction-in-Alexandria 

( 02/28/08 09:59PM ) — Tchaka Owen

Frank, no one is going to get an EOS unit for $135k.  The unit starting at that price will not be available and the next one up will be around $235k.  

( 03/04/08 07:04PM ) — Eric Reid Lawrenceville,GA

So I have to ask the question.. what is to be gained by a buyer going to the auction if the next day or day before they can get the same unit for the same "price" . I guess thats the power of advertising everyone wants a deal and what better place to get a deal then being able to buy directly from the seller with out and agent in the middle to drive up prices...(brought to you from inside the buyers mind)

( 03/05/08 09:08AM ) — Karen Kruschka - Fairfax Prince William Stafford County VA Real Estate Service

Frank  I have a buyer "itching" to see them this weekend - the actual sales prices will be interesting,  Karen

( 03/17/08 10:23PM ) — FRANK LL0SA- Northern Virginia Broker .:. FranklyRealty.com

Hey Lintoto!

You talk like I should be running for Congress. "Transparency" Did I use that word? 

Funny that you challenge me on the "more than 3%" thing. Actually I do not accept anything over 3%. I was even on CNN stating how shady it is to accept Realtor bribes that are called "bonuses" http://youtube.com/watch?v=x3tvAqoa-as

and it is part of the firm policy (see first blog post with our Bill of Rights on http://FranklyRealty.com )


You might also look at my blog on Buyer Agency agreement "Don't Sign Them Yet"

to better understand how it helps the consumer to know up front what the Realtor is charging. 

As for your question about flat fee versus a %, it is an excellent one. The problem is, it might take me a few hours (each of my blog posts take a ton of time). I'm not one for the quick answer. So maybe this will make the short list. Make sure to sign up on my http://blog.Franklyrealty.com blog. But to answer part of your question, yes there is a certain price point that even at 3% I wouldn't do. Part of that depends on 1) % chance of the deal going through 2) How far it is from me 3) If I like the client 4) The price point...

Ok, I'm gonna have to leave it there, or else I'm going to spend 4 hours detailing everything. Hopefully I will, but it is getting late tonight.

Frank         

( 03/19/08 11:50PM ) — FRANK LL0SA- Northern Virginia Broker .:. FranklyRealty.com

Nope. I was hoping somebody would have posted it here. You could call the sales office, but you will get some major spin.

( 04/08/08 12:49PM ) — Tchaka Owen

My opinion is that if you got a good deal when you bought it in 07 and you're looking long term, stop feeling pity for yourself.  Markets are cyclical and one day you'll be on top again.  Short-term buyers are the ones who need to be concerned, not you.  

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