Tonight witnessed the inaugural auction of newly launched ibidcondo.com - an online real estate auction company. Star Riverside unit #104 sold tonight for $86,840 by online real estate auction. The list price was $690,000. There was NO reserve. Bidders had to pay a $100 seat fee to participate. The seat fee covers the sellers cost of the property. The bulk of the auction proceeds is donated to a charity of Buyer's choosing.
I bought a seat and bid in the auction. It lasted 25 minutes. The first 5 minutes took forever for the price to get higher because the bid increment was only $10. After 5 minutes, the bid increment increased to $100. And in the final 10 minutes, the bid increment was $1,000. I lost out by $2,000. The buyer has 48 hours to sign the sales contract and pay cash.
The company has posted its upcoming auctions for other units in the same complex - to be built early 2010. This is a tremendous opportunity/deal - even a "steal" I'd add.
Linda Mardi
AuctionFirst.com
I attended today's auction of 19 Brazos Condos in Austin TX. Real estate auction company Kennedy Wilson today auctioned 19 units in under 2 hours. Although all of the units had very low starting bids, the auctioneer explained at the begining of the auction that the units had unpublished reserves and that to win the bid, the highest bid had to meet or exceed the unpublished reserves.
The auction was extremely well attended, with over 200 packed into the Hilton downtown hotel ballroom. It appeared that many of the bidders had pre-registered with the company - streamlining their entrance into the ballroom. Only registered bidders were allowed inside.
The auction itself was well paced. The auctioneer did a great job of explaining how the bidding would work and how he would gradually lower the increments, from $25,000 down to not less than $1,000. The bid assistants also did a great job of maintaining lively interest and tracking the various bidders with loud "yeps" as someone bid a higher increment.
As the bidding proceeded, the auctioneer would announce when the unpublished reserve had been met and that the unit would then be sold to the highest bidder, no longer subject to seller's confirmation. All but one unit was announced sold. There was only one unit that did not meet the reserve and was sold subject to seller's confirmation.
This was a great auction to watch! However, as a real estate auctioneer myself, I can tell you that the critical and most important aspect of the auction is the marketing program. This auction was well marketed - read about it, heard about everywhere - plus it gots tons of tv news and media exposure. Additionally, the auction company and builder were able to maintain a sales office open 7 days a week with models available to walk thru. This auction had great participation for several reasons: (1) well marketed; (2) great product; and (3) minimum bids, even though meaningless, help grab attention; and (4) extremely well executed auction logistics/strategy.
What a great way to buy! Terms and conditions were transparent, the only thing the buyer needed to do was figure out how much he/she wanted to pay maximum, figure out their financing, and then get a $2500 certified check per property they wanted to buy. A 4% buyers premium will be added to each high bid to total the sales price. Buyers have 30 days to close escrow. Final sales prices were between 20-40% less than the last sales price.
What a great way to sell! Auctions present an ideal opportunity for builders, especially condo builders who have financing considerations tied to the number of unsold units remaining.
I've traveled the country attending real estate auctions from some of the best auction companies. This was my first Kennedy-Wilson auction - a California based company that holds real estate auctions across the country. I was impressed with Wilson-Kennedy's auction logistics today. Their auction team and staff appeared top notch and experienced. The auctioneer did a fabulous job! So often, I'm embarrassed by what I find to be old-school auctioneers that engage in non-appreciated humor or just a bit too much 'country' inappropriate for more upscale / commercial property auctions. Registration flowed smoothly, thanks in large part to pre-registration packets available, and the contract signing room also appeared to run smoothly, with Heritage Title assisting with contracts.
Linda Mardi, Auctioneer/Broker/Attorney
www.AuctionFirst.com
Specializing in accelerated marketing of real estate sales thru auction. Sell your property in 30 days - ask us how.
Hi All,
Newsflash! Robert Grunnah of Castle Hill Investments in Austin TX has launched a real estate auction company Home Auction Live! - you can find it at www.HomeAuctionLive.com.
Robert is Austin's #3 top producer for 2006, according to Austin Business Journal, with over $50M in annual sales. Looking for a way to diversify his existing brokerage that focuses on rental properties and investors, Robert decided that real estate auctions are here to stay and gaining appeal by sellers as an alternative way to market and sell their properties.
Home Auction Live launched February 1st and its first auction is scheduled for March 1, 2008 at the Hyatt Regency in Town Lake, Austin TX. The company expects to have 20+ properties up for sale that include mostly single family residences, but also some lots, multifamily, and commercial opportunities. All sellers have been pre-qualified as highly motivated and confidential reserves are super low. Buyers need to do their homework ahead of the auction - but have a great chance to get a wonderful deal.
The auction will be quite an event. Plus, the company is planning on regular monthly auctions on the first saturday of each month.
Linda Mardi, President/Auctioneer/Broker/Attorney
AuctionFirst.com
AuctionFirst specializes in selling real estate by accelerate auction marketing.
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