89 Palmeira Way, Lot 21, Lot 23, and Lot 28 are being offered by auction on October 13, 2007 at 1:00 pm. We have set a new published minimum bid of $750,000 for this property. Any bid of $750,000 or more will be accepted and property will be SOLD. Please view our website for more information.
The Premier Auction Group
http://www.thepremierauctiongroup.com/auction_detail.php?auction_id=368693&ID=368693
PRE-AUCTION OFFERS ARE ENCOURAGED AND WILL BE PRESENTED.
Replies
84
Beach Fanatic
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
I guess what I don't understand is this:
If a seller is really motivated, and I mean super motivated,
And they MUST SELL,
then why wouldn't they just list their property with a Realtor at the lowest acceptable price they need?
If it's truly priced at a "Wow" price, then why would you even bother going through the complications of the auction process.
Does anyone agree with me that if it's bargain-priced to begin with, then it shouldn't need $10,000 worth of marketing?
I guess what I don't understand is this:
If a seller is really motivated, and I mean super motivated,
And they MUST SELL,
then why wouldn't they just list their property with a Realtor at the lowest acceptable price they need?
If it's truly priced at a "Wow" price, then why would you even bother going through the complications of the auction process.
Does anyone agree with me that if it's bargain-priced to begin with, then it shouldn't need $10,000 worth of marketing?
SoWal Insider
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
I guess what I don't understand is this:All factors being equal, does price matter if buyers sit on the sidelines?
If a seller is really motivated, and I mean super motivated,
And they MUST SELL,
then why wouldn't they just list their property with a Realtor at the lowest acceptable price they need?
If it's truly priced at a "Wow" price, then why would you even bother going through the complications of the auction process.
Does anyone agree with me that if it's bargain-priced to begin with, then it shouldn't need $10,000 worth of marketing?
SoWal Insider
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
In the absence of buyers, does it not become ridiculous at some point?
In the absence of buyers, does it not become ridiculous at some point?
SoWal Expert
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
I guess what I don't understand is this:
If a seller is really motivated, and I mean super motivated,
And they MUST SELL,
then why wouldn't they just list their property with a Realtor at the lowest acceptable price they need?
If it's truly priced at a "Wow" price, then why would you even bother going through the complications of the auction process.
Does anyone agree with me that if it's bargain-priced to begin with, then it shouldn't need $10,000 worth of marketing?[/quote]
Yes I agree with you. I don't understand that if there is a "lowest acceptable price" why there would be a big splashy auction.
These are good auctions- Christie's, Sotheby's, courthouse steps, barns out in the country.
The real estate "auctions" are just a twist on an open house to me.
Beach Fanatic
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
The buyer is here. He/she is not absent. They wait and ponce once they see the value they are looking for. It is a roll of the dice at this point. The buyer never left. The perceived value left.
In the absence of buyers, does it not become ridiculous at some point?
The buyer is here. He/she is not absent. They wait and ponce once they see the value they are looking for. It is a roll of the dice at this point. The buyer never left. The perceived value left.
Beach Fanatic
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
Thanks jdarg ....
I also want to clarify that I'm not bashing the auction process.
I actually love auctions!
But in this current real estate market it just makes more sense to me that if you NEED to move a property quickly, your chances will be much greater if you just go ahead and try to sell it at your lowest acceptable price to begin with. Just my opinion.
Thanks jdarg ....
I also want to clarify that I'm not bashing the auction process.
I actually love auctions!
But in this current real estate market it just makes more sense to me that if you NEED to move a property quickly, your chances will be much greater if you just go ahead and try to sell it at your lowest acceptable price to begin with. Just my opinion.
Beach Fanatic
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
I also understand that all of this hefty marketing the auction houses do has the power to at least generate some interest on the property; however, I believe that same interest can be generated with a price that is marketable.
I also understand that all of this hefty marketing the auction houses do has the power to at least generate some interest on the property; however, I believe that same interest can be generated with a price that is marketable.
Beach Lover
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
Fisher,
I also agree with your comments regarding the WaterSound condo going to auction. This unit is listed for sale in the MLS (#422234) at $2.599MM; however, the auction price of $1.99MM + $199K (buyers premium) implies only a 15% decrease from list. Not a WOW price in my opinion.
Additionally, a quick check of the Walton County Property Appraisers office reveals an original purchase price of $1.7MM in July 05'. Unless the original buyer added debt on the residence over the past couple of years, it appears the owner is looking to sell at a profit. Doesn't appear to be someone needing to sell.
Just my opinion.
Little Fish
Fisher,
I also agree with your comments regarding the WaterSound condo going to auction. This unit is listed for sale in the MLS (#422234) at $2.599MM; however, the auction price of $1.99MM + $199K (buyers premium) implies only a 15% decrease from list. Not a WOW price in my opinion.
Additionally, a quick check of the Walton County Property Appraisers office reveals an original purchase price of $1.7MM in July 05'. Unless the original buyer added debt on the residence over the past couple of years, it appears the owner is looking to sell at a profit. Doesn't appear to be someone needing to sell.
Just my opinion.
Little Fish
Beach Fanatic
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
LF, and the $1.99 M is a net of 17.6% over the 05 sales price.
In a market such as exists today to expect an 8% annual increase in value is a stretch.
LF, and the $1.99 M is a net of 17.6% over the 05 sales price.
In a market such as exists today to expect an 8% annual increase in value is a stretch.
Beach Fanatic
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
Do any of you remember the RE auctions in the early 80's? Those were generally absolute cuz some marketing genius hadn't come up with this years maybe sorta kinda wanta auction if i can get my price deal...
Can the days of absolute auctions be that far off?
Do any of you remember the RE auctions in the early 80's? Those were generally absolute cuz some marketing genius hadn't come up with this years maybe sorta kinda wanta auction if i can get my price deal...
Can the days of absolute auctions be that far off?
Beach Comber
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
I guess what I don't understand is this:
If a seller is really motivated, and I mean super motivated,
And they MUST SELL,
then why wouldn't they just list their property with a Realtor at the lowest acceptable price they need?
If it's truly priced at a "Wow" price, then why would you even bother going through the complications of the auction process.
Does anyone agree with me that if it's bargain-priced to begin with, then it shouldn't need $10,000 worth of marketing?[/quote]
Yes I agree with you. I don't understand that if there is a "lowest acceptable price" why there would be a big splashy auction.
These are good auctions- Christie's, Sotheby's, courthouse steps, barns out in the country.
The real estate "auctions" are just a twist on an open house to me.
Okay, I am offering $100K for this house. This is my offer.
Beach Fanatic
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
"..Can the days of absolute auctions be that far off?..."
You will not get an "absolute" auction while the "owner" is still
controlling the property.
You will only see that once a lender has possesion and is getting
desperate, or when a government entity (i.e. Resolution Trust Corp-
type entity) takes over the properties from a failed lender.
But since most lenders have bundled and sold loans rather than
holding them as they did in the past, there is another element of
uncertainty in the mix.
I suspect that some properties may end-up being abandoned,
literally: so many entities will have a interest in them that none
will consider it worth their while to pursue their interest.
Then they will go to tax sales.
It is going to be interesting
"..Can the days of absolute auctions be that far off?..."
You will not get an "absolute" auction while the "owner" is still
controlling the property.
You will only see that once a lender has possesion and is getting
desperate, or when a government entity (i.e. Resolution Trust Corp-
type entity) takes over the properties from a failed lender.
But since most lenders have bundled and sold loans rather than
holding them as they did in the past, there is another element of
uncertainty in the mix.
I suspect that some properties may end-up being abandoned,
literally: so many entities will have a interest in them that none
will consider it worth their while to pursue their interest.
Then they will go to tax sales.
It is going to be interesting
Beach Fanatic
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
Still feel that auction wasn't a waste of your time?
I am one of these potential buyers that you all keep talking about. And I can tell you now that I am not buying a plane ticket to come down to an auction until all this nonsense stops. And buy nonsense I mean: 1). Action houses holding absolute auctions were the first condo is sold to the highest bidder and then the seller pulls the rest off the market with no sale, 2). Auction houses that allow auctions where you hear about the last minutes phone bidder, 3). Auction houses that accept too high a minimum reserve.
I know SoWal is coming off of a Seller's market of epic proportions ... but now is the time to be demanding of your sellers and create an environment of trust and good deals that truely attracts buyers. (I would think a side benefit would be that you would create credibility with sellers to, because then you would actually be selling something).
Since you asked:
The property was most recently listed at $899K, and now the minimum bid (with fees) that you would accept at this one day auction is a whopping 8% below that.
In my opinion, in this market that is joke. Why are you allowing these sellers to waste your time?
To answer your question, I don't believe that our time is being wasted. This property has now been marketed on a national level. This isn't an out of the line asking price by any means.
Still feel that auction wasn't a waste of your time?
I am one of these potential buyers that you all keep talking about. And I can tell you now that I am not buying a plane ticket to come down to an auction until all this nonsense stops. And buy nonsense I mean: 1). Action houses holding absolute auctions were the first condo is sold to the highest bidder and then the seller pulls the rest off the market with no sale, 2). Auction houses that allow auctions where you hear about the last minutes phone bidder, 3). Auction houses that accept too high a minimum reserve.
I know SoWal is coming off of a Seller's market of epic proportions ... but now is the time to be demanding of your sellers and create an environment of trust and good deals that truely attracts buyers. (I would think a side benefit would be that you would create credibility with sellers to, because then you would actually be selling something).
Edited
Beach Lover
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
many of the mortgages sold are w/out recourse to the originating lender - properties will not be abandoned; someone will foreclose if need be and get their collateral, rest assured of that. lenders cannot afford to write down a loan in its entirety.
"..Can the days of absolute auctions be that far off?..."
But since most lenders have bundled and sold loans rather than
holding them as they did in the past, there is another element of
uncertainty in the mix.
I suspect that some properties may end-up being abandoned,
literally: so many entities will have a interest in them that none
will consider it worth their while to pursue their interest.
many of the mortgages sold are w/out recourse to the originating lender - properties will not be abandoned; someone will foreclose if need be and get their collateral, rest assured of that. lenders cannot afford to write down a loan in its entirety.
Beach Comber
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
Like bdc63 I too am a potential buyer and not into any of the games played at auctions.
I have been looking for a retirement home, so right away I am not interested in a property where I will have "new neighbors" every week. That trims my market search considerably. Secondly, I know what the R.E. boom did to prices in the last 10 years, so I have a pretty good idea where they need to be to be realistic. I am sorry for the owners who paid too much at the peak of the market, but they should not expect someone else to make a similar decision and solve their problems. Now is the time to make some tough decisions and one of them may be "should I take a loss now, or wait a few more months and take a bigger loss"?
Also, hurricanes, summer crowds, constantly increasing condo. fees and taxes make it seem smarter to own a home here in a gated golf course community, and then just rent on the beach for two months in the Spring or Fall. Also, the panhandle is not below the frost line. These are some of the considerations sellers need to address when they need to sell quickly.
Not a pretty picture, but that's life in a buyers market.
Like bdc63 I too am a potential buyer and not into any of the games played at auctions.
I have been looking for a retirement home, so right away I am not interested in a property where I will have "new neighbors" every week. That trims my market search considerably. Secondly, I know what the R.E. boom did to prices in the last 10 years, so I have a pretty good idea where they need to be to be realistic. I am sorry for the owners who paid too much at the peak of the market, but they should not expect someone else to make a similar decision and solve their problems. Now is the time to make some tough decisions and one of them may be "should I take a loss now, or wait a few more months and take a bigger loss"?
Also, hurricanes, summer crowds, constantly increasing condo. fees and taxes make it seem smarter to own a home here in a gated golf course community, and then just rent on the beach for two months in the Spring or Fall. Also, the panhandle is not below the frost line. These are some of the considerations sellers need to address when they need to sell quickly.
Not a pretty picture, but that's life in a buyers market.
SoWal Insider
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
That's the biggest problem with Florida's sagging RE market....the only folks left out there with the means/credit to buy, are folks who can knowledgeably and logically crunch the numbers. Only after the numbers start making sense, will the markets begin to move in a meaningful way.
.
Also, hurricanes, summer crowds, constantly increasing condo. fees and taxes make it seem smarter to own a home here in a gated golf course community, and then just rent on the beach for two months in the Spring or Fall. Also, the panhandle is not below the frost line. These are some of the considerations sellers need to address when they need to sell quickly.
Not a pretty picture, but that's life in a buyers market.
That's the biggest problem with Florida's sagging RE market....the only folks left out there with the means/credit to buy, are folks who can knowledgeably and logically crunch the numbers. Only after the numbers start making sense, will the markets begin to move in a meaningful way.
.
Edited
Beach LoverAuthor
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
This property is going to be included in our multi-property auction on Novemember 17. The PUBLISHED RESERVE for this property is now $659,000.
This property is going to be included in our multi-property auction on Novemember 17. The PUBLISHED RESERVE for this property is now $659,000.
SoWal Expert
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
I disagree with your reasoning. Most auction companies seem to advetise for at a minimum of 45 days and they charge the seller upfront. (Find me one Realtor around here who charges the seller for the advertising up front or on top of the commissions on the back end of the sale. It doesn't happen.) Add to those 45+ days of advertising, assuming the contract is written at the auction, an additional 30 days for a closing. A seller really gains nothing, and only a minority of auctioned properties are actually selling and the seller is out of pocket for the advertising costs.
I disagree with your reasoning. Most auction companies seem to advetise for at a minimum of 45 days and they charge the seller upfront. (Find me one Realtor around here who charges the seller for the advertising up front or on top of the commissions on the back end of the sale. It doesn't happen.) Add to those 45+ days of advertising, assuming the contract is written at the auction, an additional 30 days for a closing. A seller really gains nothing, and only a minority of auctioned properties are actually selling and the seller is out of pocket for the advertising costs.
10% can be justified in that an auction typically renders a buyer quicker...so instead of putting it on the mkt for 120 days and auction may sell the property in 30 days thus saving 90 days of carry/expenses.
10% commission makes sense...but you can't auction properties in this mkt at those prices...it needs to be a WOW price and i'm not talking 10% discount from recently sold/asking...i'm talking 30%+
SoWal Expert
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
With all of this talk of "published minimum bids" and reserve prices, I get confused. Is this new reserve price an amount which the seller will absolutely agree to, or is this just a price at which he can call off the auction if this amount isn't bid?
With all of this talk of "published minimum bids" and reserve prices, I get confused. Is this new reserve price an amount which the seller will absolutely agree to, or is this just a price at which he can call off the auction if this amount isn't bid?
This property is going to be included in our multi-property auction on Novemember 17. The PUBLISHED RESERVE for this property is now $659,000.
Beach Fanatic
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
That is what is selling. If the numbers work it gets gobbled up pretty quick!
That's the biggest problem with Florida's sagging RE market....the only folks left out there with the means/credit to buy, are folks who can knowledgeably and logically crunch the numbers. Only after the numbers start making sense, will the markets begin to move in a meaningful way.
.
That is what is selling. If the numbers work it gets gobbled up pretty quick!
SoWal Insider
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
I'm just a Master of the Obvious.
.
That is what is selling. If the numbers work it gets gobbled up pretty quick!
I'm just a Master of the Obvious.
.
Beach LoverAuthor
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
The seller will absolutely sell the property if the minimum bids (reserves) that we have published are met.
The seller will absolutely sell the property if the minimum bids (reserves) that we have published are met.
Beach Fanatic
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
Wow! We are really starting to see eye to eye. This is really scary!;-)
I'm just a Master of the Obvious.
.
Wow! We are really starting to see eye to eye. This is really scary!;-)
Beach Comber
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
Com'on guys and gals. Why you picking on poor P.A.G.? Auctions used in this market are a gimmick. They aren't cheating anybody. Yes, they are charging a higher rate but who's fault is that? My broker told me 6%. I told him 5%. He said OK. If someone pays 10% for the perceived value of selling quickly, let 'em. That is not unethical. The seller is just dumb.
Are the people complaining real estate folks with sour grapes?
Com'on guys and gals. Why you picking on poor P.A.G.? Auctions used in this market are a gimmick. They aren't cheating anybody. Yes, they are charging a higher rate but who's fault is that? My broker told me 6%. I told him 5%. He said OK. If someone pays 10% for the perceived value of selling quickly, let 'em. That is not unethical. The seller is just dumb.
Are the people complaining real estate folks with sour grapes?
SoWal Insider
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0
I'm not a RE person <surprise!>, I have issues with any 'open house' that doesn't provide snacks.
.
Are the people complaining real estate folks with sour grapes?
I'm not a RE person <surprise!>, I have issues with any 'open house' that doesn't provide snacks.
.
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